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How South Korea Digital Currency Exchange Hack Impacted Bitcoin Price?

How South Korea Digital Currency Exchange Hack Impacted Bitcoin Price?

A tiny South Korea’s cryptocurrency exchange disclosed that it was hacked by some miscreants during the weekend. That was simply enough for bears to hammer the digital currency to make the most. The price of Bitcoin nosedived over ten percent to hit the weakest in about two months’ time. However, the virtual currency’s price has managed to recover from the losses to post a small gain around eastern time 1.40 a.m. The cybercriminals view it as an easy target given that its prices could deliver significant returns in short periods.

Most-Traded Digital Coin

Coinrail is focused on virtual currency trading in South Korea, which is the third biggest place for wider acceptance of the new age technology. It was not the only one to get impact as Pundi X was also among the affected list of exchanges dealing with cryptocurrencies, CNBC reported. Interestingly, the Pundi X-bitcoin pair enjoyed the status of being the most traded in its platform. However, the exchange did not disclose about the digital coin and whether it has lost any virtual currency.

In any case, hacking a cryptocurrency exchange was good enough for the bear operators to drag down its prices. Bitcoin price reached a two-month low of $6,647.33. The drop in price has got to do with a wider sell-off in the sector.  Later, the digital currency managed to recover from the lost ground to trade around $6,805.88 level. In the current year alone, the biggest digital coin in terms of market capitalization has witnessed a drop of 50 percent.

If the leader in any space witnesses a negative trend, it was quite natural that its effect would be felt on others in the same sector too. Therefore, it was not surprising that other cryptocurrencies have also witnessed a sharp drop in prices after the hacking news hit the market. For instance, Ethereum digital coin saw its price plunging around 14 percent at one point in time though it also recovered to around $534.51 from close to $514.

Similar is the case in respect of litecoin that saw the prices dropping about 11 percent to nearly $104 losing about 12.3 percent in the 24-hour period. However, the virtual currency started seeing tiny gain to trade around $108.56 levels.

Potential Price Manipulation

There have already been serious doubts about prices of cryptocurrencies being manipulated by some vested interests. The Wall Street Journal also reported about potential price manipulation in four big exchanges dealing with digital currencies. They are Bitstamp, Coinbase, itBit, and Kraken. Reports suggest that the American regulators were engaged in investigations into it.

Hacking is a bigger issue that the virtual currency players are facing currently. Already, the industry has seen more than $1 billion loss from the hacking of different cryptocurrency exchanges in the current year alone. That is primarily because of a different kind of malware being available for hackers to select.

About the author

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Megan Mayle

Megan, while pursuing MBA in California, started writing blogs on the financial developments and revolutions around the globe and soon got caught up with cryptocurrencies. She has been giving consultancy about smart contracts. Megan focuses on latest updates on cryptos from banks and on regulations by governments worldwide.

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