The crypto market today has taken a major hit with almost $17 Billion lost due to the bearish trend sweeping in. This week a lot has happened in the crypto space and the events that took place were not the ones that would give a green signal to the investors.
The Bithumb attack this week was one the major factors that influenced the price movements in the market, the attack where the exchange lost $31 million has conveyed that it would compensate the loss with the funds of the company which accumulates to 6% of the stolen value. The company has about $450 million and says that they will be compensating the loss with ease.
Bithumb also moved its all the digital tokens/crypto-assets to the cold storage from the hot wallet for more security purpose, in order to reduce and prevent from getting prone to more damages. It is also alleged that Bithumb’s move of shifting of its crypto-assets to the cold storage from the hot wallet has increased the transaction prices of the Bitcoin.
This was the first reason that could have shifted the market towards a bearish sentiment, while this is a temporary event when the backlogs will clear, the network will stabilize and the transaction fees will normalize, however till the moment the backlogs have not cleared the fees would remain high.
Another news that rolled in was Tether and Bitfinex had allegations that they have been artificially soaring up the price of Bitcoin by supplying more Tether than the reserve of USD they possess. A law firm Freeh Sporkin & Sullivan, LLP (FSS) gave a report where the report claimed that the tether is legitimately collateralized and the circulating supply of Tether was $2,538,090,823.52 which was maintained by $2,545,067,236.82 worth of USD.
But FSS is not even an accounting firm, besides that this was not an audit and if there is any flaw in the information, FSS won’t be liable for any damages.
EOS an altcoin that has also been in the news for its mainnet launch, has also been through a lot of controversies, first prior to the launch of the mainnet EOS’ network was found with a bug, a security firm Qihoo 360 revealed it.
Weiss Ratings reported that Bitfinex is allegedly using traders’ tokens to vote itself in EOS, this also sends a negative signal for the investors where they do not want the technology to behave in a way it was not intended to, Dan Larimer chief developer of EOS also commented to it:
“There is widespread belief that there is no “governance” of Bitcoin or Ethereum and that these protocols are decentralized. There is further a belief that the code should be law. In reality all blockchains have human governance processes that reveal themselves in emergencies and when the protocol upgrades.”
EOS has also frozen 7 accounts in an effort to stop several thefts, seven accounts on the EOS blockchain were frozen on June 17. 21 Block Producers decided to freeze 7 accounts who allegedly attempted an attack on the network, however, this also raises a question, is the network not following some of a centralized method in order to arrive at a consensus?
EOS is also affected by 10% in negative.
Some altcoins offereing 45 to 61% return
The unexpected behavior and the volatility of the altcoins are two factors which affect the price of the coin very much, now this is something that you should appreciate, while the market was diving deep, two altcoins have taken the opposite directions.
One altcoin named Game.com has gained 45% while the major coins were diving deep this coin managed to gain 45%.
Game coin change in percentage Image Source: CoinMarketCap
Another coin Centrality has risen by 61%, massive hike.
Centrality change in percentage Image Source: CoinMarketCap
Prices of the coin at the press time Image Source: CoinMarketCap
While the reason of this phenomenal returns might not be known but we assume it could be a pump by the whales and large coin holder who could artificially have hiked the prices up, or some development in the community where major token holders and investors thought this would be a good opportunity to hold this coin.
The market cap of these coins is also very low as compared to the top coins, but irrespective of that this behavior of the altcoins where you have such speculative opportunities makes it most interesting.
Image Source for featured image: Coin360
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