Monday morning you open up to check out the top crypto news and you read stupid headlines like this “Cryptocurrencies lose $46 Billion after South Korean bourse hack“.
To summarize Coinrail which is a digital currency trading venue in South Korea was hacked. The amount stolen was not disclosed besides it said that 70 percent of the currency was stored in cold storage which has the least amount of vulnerability when it comes to hacking. Coinrail is also not a major trading venue as it’s 24-hour volume was only $2.65 million according to data compiled by Coinmarketcap.com before news of the hack. Now it get’s interesting according to Bloomberg:
“Two-thirds of the stolen assets — which the exchange identified as NPXS, NPER and ATX coins — have been frozen or collected, while the remaining one third is being examined by investigators, other exchanges and cryptocurrency development companies.”
To be frank, I wasn’t even aware of the above currencies before. So it is highly unlikely that an exchange with a trading volume of about $2.65 million would cause a $46 billion crypto washout. I do agree that since South Korea is one of the major liquidity providers in the cryptomarket this news might have affected sentiments, but a fall of such large scale is doubtful as the top currencies have been stuck in a range for a while and this might just be a technical correction.It is probably a negative news feedback loop.
If you think otherwise do comment on the post.