On Sunday, a South Korean cryptocurrency exchange, Coinrail, announced that there was an attempt to hack the platform. After the hack, some of the leaked coins were recalled or frozen while 70% of the platform’s reserve was reported safe.
Cryptocurrency Price Crumbles After Hack
After the hack, the price of Bitcoin, Ethereum, Bitcoin Cash, Ripple and other cryptocurrencies fell by more than 5%. This broke the two weak record of low volatility. Bitcoin, which was trading around $7600 fell to $7300 within a 30-minute window. Since then, it has been trading with the $100 range.
Of all the cryptocurrencies suffering from the hack, Bitcoin was impacted the least as it has only fallen by 5%. Other cryptocurrencies in the top ten have experienced between 6% to 11% fall in price.
This isn’t the first time a large cryptocurrency exchange is being hacked. Almost a year ago, the largest exchange in Korea, Bithumb, was hacked. About 31,800 accounts were compromised as hackers gleaned information to be able to transfer cryptocurrencies from customer accounts.
Less than seven months ago, Youbit, another South Korean exchange was hacked with over $48 million worth of Bitcoin stolen.
The Coinrail hack marks the third time a South Korean cryptocurrency exchange would be hacked within the last 12 months. No one knows if the culprits are from North Korea or if the country itself is responsible for the attacks. However, the rumor in the industry is that North Koreans are eager to lay their hands on cryptocurrencies and convert them into fiat money.
Technical Rebound Trips Hack
The managing director at Fundstrat Global, Robert Sluymer, published a report about some technical developments which included stage one of a three-stage process of bottoming. He acknowledged that the project is premature but it’s unlikely that he saw this attack on Coinrail in view before he published the paper.
Hacking will always be an obstacle to the mass adoption of Bitcoin and other cryptocurrencies. Until developers can find a lasting solution to the problem, it will always be a problem.