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Cryptocurrency Dips By $46 Billion on Coinrail Hack

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  • Cryptocurrency Dips By $46 Billion on Coinrail Hack

The report that a cryptocurrency exchange, Coinrail, was hacked in South Korea plunged cryptocurrency market by $46 billion as holders of digital assets sold to curb losses. Bringing Bitcoin total losses this year to more than 50 percent.

Once again, the hacking brought to the fore the security-risk associated with lightly regulated crypto exchanges. Crypto platforms have come under heavy scrutiny across major economies in recent months with nations like South Korea, the U.S and other large economies accusing exchanges of market manipulation, weak security that render them vulnerable to attacks and money laundering.

Bitcoin

Bitcoin declined by 11 percent to trade at $6,763.28 as of 6:27 a.m in Nigeria on Monday, bringing its year-to-date loss to 53 percent. Other digital currencies tracked by Investorsking.com also slumped, sending the market value of digital assets to two month low of $294 billion.

At the height of crypto rush in January, the market capitalization was $830 billion.

But after series of thefts and growing uncertainties, the value has drastically dropped, especially after about $500 million digital coins were stolen from Coincheck Inc. in Japan.

According to Stephen Innes, head of Asia Pacific trading at Oanda Corp., “This is ‘If it can happen to A, it can happen to B and it can happen to C,’ then people panic because someone is selling.”

However, while the slump may have been exacerbated by low market liquidity during the weekend, safety of funds and uncertainty continued to impact market confidence in the crypto space.

“The markets are so thinly traded, primarily by retail accounts, that these guys can get really scared out of positions,” Innes said. “It actually doesn’t take a lot of money to move the market significantly.”

The South Korean exchange Coinrail said in a statement on its website that some of its digital currency appears to have been stolen by hackers, but the exchange didn’t disclose how much was stolen. To assure clients of safety and sound security measures, the exchange said 70 percent of it cryptocurrencies are being kept in a cold wallet not connected to the internet and less vulnerable to theft.

According to the exchange, two-thirds of the stolen coins — which the Coinrail 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.

Coinrail is among the world’s Top 100 most active exchanges, with a 24-hour volume of about $2.7 million and trades more than 50 cryptocurrencies.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Bitcoin

Jesse Powell Says Bitcoin Could Hit $1 Million Per Coin

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Kraken CEO Sees $1 Million Bitcoin in the Next Decade

The Chief Executive Officer and co-founder of Kraken Exchange, Jesse Powell, has made a bold Bitcoin prediction in a recent interview with Bloomberg.

Powell said Bitcoin could hit $1 million in the next decade, adding that supporters of the crypto asset are already saying it could replace all major fiat currencies.

He went on to predict a disruptive future that would stretch even the imagination of the most ardent crypto fans.

We can only speculate, but when you measure it in terms of dollars, you have to think it’s going to infinity,” he said. “The true believers will tell you that it’s going all the way to the moon, to Mars and eventually, will be the world’s currency.”

He added that his San Francisco-based Kraken is looking to go public next year.

The CEO explained that Bitcoin bulls see surpassing the combined market value of the dollar, euro and other currencies.

The dollar “is only 50 years old and it’s already showing extreme signs of weakness, and I think people will start measuring the price of things in terms of Bitcoin,” he said.

Bitcoin declined by 4.31 percent to $48,329.97 per coin amid rising yields and growing economic recovery.

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MicroStrategy Dumps Over $1 Billion on Bitcoin, Now Holds $4.78 Billion BTC

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MicroStrategy Dumps Over $1 Billion on Bitcoin, Now Holds $4.78 Billion BTC

MicroStrategy, a business intelligence firm, announced it has purchased another 19,452 Bitcoin worth $1.026 billion.

The company joined Square and other companies that bought the dip witnessed earlier this week after Elon Musk, Bill Gates and Janet Yellen commented on the fast-rising digital currency.

MicroStrategy now holds 90,531 Bitcoin worth $4.78 billion, more than Elon Musk’s Tesla acquisition of $1.5 billion.

Michael Saylor, the Chief Executive Officer (CEO), MicroStrategy continues to pursue a coin acquisition strategy now codified in the business intelligence company’s mission.

Square purchased 3,318 Bitcoin at an estimated $170 million value on Tuesday when the world’s most dominant cryptocurrency dipped to $45,000 before rebounding to the current level.

Bitcoin presently trading at $49.233.71 per coin as of the time of writing.

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CBN, SEC Anchor Cryptocurrency Ban on Financial System Protection

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CBN, SEC Anchor Cryptocurrency Ban on Financial System Protection

The Central Bank Governor, Mr Godwin Emefiele, on Tuesday said the bank’s decision to prohibit deposit money banks, non-banking institutions and other financial institutions from facilitating trading and dealings in cryptocurrency was in the best interest of Nigerian depositors and the country’s financial system.

Emefiele said this while briefing a joint Senate Committee on Banking, Insurance and Other Financial Institutions; ICT and Cybercrime; and Capital Market, on its directive to institutions under its regulation.

These were according to a statement from CBN titled ‘Cryptocurrency: We acted in Nigerians’ best interest – Emefiele’.

Describing the operations of cryptocurrencies as dangerous and opaque, the CBN governor said the use of cryptocurrency contravened an existing law.

He said the fact that cryptocurrencies were issued by unregulated and unlicensed entities made it contrary to the mandate of the bank, as enshrined in the CBN Act (2007) declaring the bank as the issuer of legal tender in Nigeria.

Emefiele, who also differentiated between digital currencies, which central banks could issue and cryptocurrencies issued by unknown and unregulated entities, stressed that the anonymity, obscurity and concealment of cryptocurrencies made it suitable for those who indulge in illegal activities such as money laundering, terrorism financing, purchase of small arms and light weapons and tax evasion.

Citing instances of investigated criminal activities that had been linked to cryptocurrencies, he stated that the legitimacy of money and the safety of Nigeria’s financial system was central to the mandate of the CBN.

He declared that cryptocurrency was not legitimate money because it was not created or backed by any central bank.

“Cryptocurrency has no place in our monetary system at this time and cryptocurrency transactions should not be carried out through the Nigerian banking system,” he said.

Also speaking, the Director-General, the Securities and Exchange Commission, Mr Lamido Yuguda, clarified that there was no policy contradiction between the CBN directive and the pronouncements made by the SEC on the subject of cryptocurrencies in Nigeria.

He explained that the SEC made its pronouncement at the time to provide regulatory certainty within the digital asset space due to the growing volume of reported flaws.

Prior to the CBN directive, he said, the SEC had in 2017 cautioned the public on the risks involved in investing in digital and cryptocurrency.

He said that the CBN, the Nigeria Deposit Insurance Corporation and the SEC had between 2018 and 2020 issued warnings on the lack of protection in investments in cryptocurrency.

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