Eric Lam, a Hong Kong-based crypto-asset reporter, talked about South Korean cryptocurrency exchange Coinrail reporting a ‘cyber intrusion’, on Bloomberg. The exchange did reveal that around 70% of their cryptocurrency holdings were stored in a ‘cold wallet’, a wallet that is not connected to the internet.
Lim continued, saying the other 30% were the affected digital assets, and two-thirds of this was either frozen or recovered while the remaining is presumed to be stolen.
The exact value of the ‘hacked’ coins remains unknown, although some numbers have been thrown about. The anchor opened the issue of cryptocurrency safety, to which Lim said that this is not the first Korean exchange to be hacked, and talked about Coincheck from January, a hacking incident that was reported to have cost the exchange $500 million.
When asked about who the biggest losers were, Lim responds by stating that some companies that have stakes in Bithumb saw their stocks fall by 4%.
I am Nomad, on Twitter, says:
“1.) #50 in volume. Who care. 2.) Stop using bitcoin and crypto currency interchangeably cor generics. It’s the difference between saying “tech sector” and “aapl”.
Reginald McPherson, a Twitter user says:
“Normal price action. Drop has nothing to do with the hack.”
The fate of all cryptocurrencies are tied at the hip to Bitcoin’s fate, so if BTC price drops drastically, this induces selling pressure on all other currencies as well. And yet, as Warren Buffett, the Oracle of Omaha, is fond of saying, “be fearful when others are greedy, and be greedy when others are fearful”.