After a South Korean cryptocurrency announced that it has suffered a ‘cyber-intrusion’ and has got hacked, the value of bitcoin fell sharply.
According to a research site, Coindesk, in about a weekends time, Bitcoin bubble has dropped by more than 10%, falling below $6,700 a unit. Bitcoin, which is considered the largest cryptocurrency has lost more than half its value so far this year. Bitcoin crash has dropped by nearly two thirds from its record high near $20,000 last December. Its low for the year came in February at less than $6,000.
As per the reports of Sunday, the latest decline came after a small exchange called “Coinrail” that several so-called “alt coins” which is considered as alternative versions of bitcoin, appeared to have been stolen in a coordinated hack.
Also, it was reported by Coinrail that 70% of its digital assets which have been moved to what is known as a cold wallet storage that isn’t connected to the Internet and that it is working with authorities on finding the lost assets.
Is Bitcoin a bubble?
South Korea is considered as the hotbed for the cryptocurrency trading. However, Coinrail is small relative to its competitors. Before the sudden attack, Coinrail was ranked near the bottom of the 100 biggest cryptocurrency exchanges in the world by trading volume.
The regulators of South Korea have taken up a tough step in trying to tame the cryptocurrency market The market of cryptocurrency is one of the world’s busiest market as measured by trading volume and changes in that is something tends to bring in transition.
The exchanges in South Korea have brought in a history of being hit by cyber attacks. The problem of cryptocurrency hacks has been a problem for the cryptocurrency markets worldwide.
In the month of January, the Japanese exchange Coincheck was attacked and in the month of February, a small Italian exchange called BitGrail was affected due to the similar reason.
According to the analysis of Wall Street Journal newspaper, ever since the year 2014, the exchange hacks have cost investors at least $1.4 billion.