Ethereum (ETH) Price Moves Higher While Cryptopia Offers Users 100% Haircut On ETH Holdings

In January 2019, the cryptocurrency exchange Cryptopia was hacked. Following the Cryptopia hack, the exchange has been trying to resume its services and get back into the game. They have made many updates in a bid to cover the vulnerability that was exploited by hackers and satisfy the needs of their users. Throughout the investigation of the Cryptopia hack, the exchange kept customers updated. In the latest turn of events, the exchange posted that users will be receiving haircuts based on their cryptocurrency holdings.

Following Cryptopia Hack, Users Haircuts

Yesterday, a Cryptopia user, on Twitter, made reference to the information on the company’s website which stated that users will receive haircuts based on their cryptocurrency holdings. The user posted:

“Now we know that #Cryptopia users who held BTC, LTC and ETH will receive ‘haircuts’. BTC – 14% ; LTC – 43% ; ETH – 100%. All other coins they have secured so far seem unaffected, but there are still many more to go. Let’s just hope these haircuts are only referring to hot wallet balances.”

The 100% ETH haircuts sparked the most engagement on Twitter. The post on the website implied that the exchange was unable to secure any ETH after the Cryptopia hack and would have to process 100% of the ETH in haircuts. The website also announced that they were working on creating more hot wallets for all major cryptocurrencies and trading would resume as soon as these wallets are processed. Keep in mind that the exchange did not state anything regarding compensation for tokens that were lost during the hack. The user continued:

“They could haircut everyone based on deposits. And tell whoever had coins in the exchange that they’ll only receive 10 cents on the $1 (or similar). That’s a possibility. Mt Gox suffered a similar demise and haircuts are a way to spread the losses across all depositors. If they don’t do that, they can just force full losses on anyone with ETH / ERC20 deposits. Either way, Cryptopia is rekt.”

In the last update about the Cryptopia hack, the company stated that there is no way they would lose more than 9% of their cryptocurrency holdings due to the hack. However, according to a report published by Elementus, the Cryptopia hack allegedly cost the exchange $16 million in ETH from up to 76k wallets.

Ethereum Price Prediction 2019: How Is Ethereum Doing Today?

A while ago, smartereum.com reported that Ethereum is setting sights at $200. This was backed by technical and fundamental analysis. ETH was one of the cryptocurrencies that led the last minor bull run that took the price of BTC above $4,000. As expected, the second largest cryptocurrency per market capitalization also started correcting lower against the USD as the tides changed in the market. This doesn’t mean the bull run is over. Downward correction attempts are completely normal when it comes to cryptocurrencies markets.

Ethereum (ETH) Price Today – BTC / USD

Name Price24H (%)
Ethereum (ETH)
$220.14
-1.81%

At the time of writing, the price of Ethereum was trading in green against the USD at $139.63. This shows that it is up by 0.10% against the USD and down by 0.40% against BTC. The market capitalization is $14,702,372,444 and the trading volume is $4,111,684,546. The market sentiment for ETH is still positive at the moment.

What do you think about the 100% haircut on ETH holdings that the exchange is offering users following the Cryptopia hack? Share your thoughts in the comment section below.

Ufuoma Ogono is a cryptocurrency writer with over 3 years experience in the cryptocurrency industry. She dedicates her time to sharing valuable information to members of the cryptocurrency community.

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