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Here Is Why Tron’s (TRX) Price Drop Is Only Temporary

The cryptocurrency markets have lost a staggering $20 Billion in the last 24 hours. The total market capitalization of the crypto markets stood at $273 Billion only yesterday; now it is valued at $253 Billion. The King of Crypto, Bitcoin (BTC), has somewhat held its own with a drop of 6% in the same time period and now trading at $6,392. BTC has since increased its market dominance to 43.2% as more traders prefer BTC in times of turmoil.

It is with the latter act of preferring BTC that the price of Tron (TRX) has also been dealt a major blow in the last 24 hours. TRX has lost 9.5% of its value in 24 hours and is currently trading at $0.033.

However, this is only temporary.

Initial reports indicate that the loss in market value has come as a direct effect of the Bancor Exchange hack that has resulted in the loss of digital assets worth $23.5 Million. The crypto market reaction follows a similar trend after the last 3 hacks (Coincheck, Coinrail and Bithumb) were announced in the crypto verse. What then proceeded, is a market recovery only a few days later. Therefore, all the TRX HODLers have to do, is to keep holding their TRX.

Another reason why the value of TRX will not be so low for too long, is that Binance plans on resuming withdrawals and deposits on the exchange sometime this week. This means that TRX holders can now move their TRX around to their wallets and cold storage thus decreasing the circulating supply available for trading. The influx of TRX into exchanges for the token migration, was a contributing factor for the decline in value of TRX by increasing the supply in exchanges whereas the demand was low.

Thirdly, the Tron MainNet has been working flawlessly since the Genesis Block was released on the Tron Independence Day. With a capability of 2,000 transactions per second, it is only a matter of time before the Tron Network decentralizes the web as well as the entertainment industry. Ethereum World News had earlier hinted that the Adult Film industry might be willing to tap into the Tron Blockchain and offer DApps for its viewers.

In conclusion, the current price decline of TRX is temporary due to the Bancor hack as well as the lack of liquidity of TRX from the numerous exchanges still facilitating the token migration. Once that is done, and the market recovers after the hack, it is all systems go for an increment in the value of TRX.

Disclaimer: This article is not meant to give financial advice. It is an opinion piece. The opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.

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Bithumb To Fully Compensate Investors after Hack

Right after Bithumb confirmed it had been hacked via twitter, the exchange would also announce on the same platform that it would compensate all affected users on its exchange. The announcement was later retracted from the platform. The announcement read as follows before it was deleted:

We checked that some of cryptocurrencies valued about $30,000,000 was stolen. Those stolen cryptocurrencies will be covered from Bithumb and all of assets are being transferring to cold wallet

However, the exchange has since confirmed that it would be compensating users on any lost funds. The new announcement was also made via twitter by the exchange.

The Bithumb team also announced that it reported the issue to KISA (Korea Internet and Security Agency) for further investigations.

After the incident occured on June 20, Bithumb quickly followed the procedure to immediately report [the] incident to KISA announcing that about 35 billion Korean Won worth amount of cryptocurrency was stolen. However, as we undergo recovery process on each cryptocurrency, the overall scale of damage is getting reduced. Hence, we expect that the overall damage will be less than the amount we initially expected.

The team has also confirmed that it had lost $30 Million in the hacking, but its developers and security team have started the recovery process of the stolen customer assets. Together with KISA and a sub-organization of the Ministry of Science and ICT, the developers and security experts have found a method of recovering a portion of the stolen funds.

The major challenge by all crypto exchanges, is protecting user funds as explained by Dr. Robert Statica to Ethereum World News. Dr. Statica was quoted as saying:

Exchanges have to take immediate & drastic cybersecurity measures but also look at how the coins & wallets are protected in transit and at rest.

Unless changes are being made right away, the attacks and their magnitude will intensify both in frequency and volume.

He also added that the solution was that…

Wallets and exchanges should employ a strong 2-factor authentication (2FA) protocol on top of the end to end encryption of the communication between the user’s device and the exchange.

Wallets and Cryptocurrencies must be protected in a way that coins  belonging to a particular user and wallet cannot be stored in another user’s unauthorized wallet. This type of protection would have solved all of the hacks that happened, so far, in which coins were extracted from exchanges or directly from users wallets.

Multiple layers of encryption (both in transit and at rest) combined with user and wallets authentication techniques and at the minimum 2FA enforced for all account holders are a must to reduce the attack vectors.

In conclusion, the act by Bithumb to compensate losses incurred by users is a welcome relief for all traders within and outside the exchange. This hack, and others before, will be vital in offering lessons in enhancing the security of all cryptocurrency exchanges.

[Photo source, ccn.com]

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Utilize 2 – 5 Crypto Exchanges to Hedge Against Hacking Losses, Advises Crypto Security Expert

In light of the recent events of two crypto-exchanges being hacked in less than 2 weeks, Ethereum World News managed to get the opinion of Dr. Robert Statica who shared his thoughts to our team. Dr. Statica is a cyber-defense, crypto, crypto-currrency, blockchain, Artificial Intelligence and technology expert, with over 25 years experience in both private and public sectors.

Dr. Robert Statica

The Q & A proceeded as follows:

Q: Perhaps we can start with your thoughts on the last two hacks…

A: After the latest hacking attack, the South Korean exchange Bithumb suspended all trading and moved the remaining crypto assets off line to cold storage. They will also cover the losses from their own money. While this is good news for the coin holders it doesn’t even come close to making the exchange more secure. More attacks will continue and the results will be devastating.

Similar for the Coinrail attack. Unsecured & centralized exchanges are a huge target and the barriers of entry for the hackers are quite low in technology, time and cost.

Others attacks like the 51% attack on ZenCash and the hacking of 500,000 computers that were used in a botnet mining pool attack for the Monero coin reflect both the weaknesses of the Blockchain protocol as well as the major security problems miners pose to the crypto systems.

Q: What does this mean for exchanges?

A: People don’t like to use unsecured systems and definitely do that like to lose their money. I think that people are smart enough now to recognize the power of secure systems and will pull their assets from those exchanges and either try to use others more secure or they will diversify their portfolio between 2-5 exchanges. Some exchanges will lose revenue while others will increase their revenue. Overall money won’t disappear in thin air but rather it will get redistributed.

Exchanges have to take immediate & drastic cybersecurity measures but also look at how the coins & wallets are protected in transit and at rest.

Unless changes are being made right away, the attacks and their magnitude will intensify both in frequency and volume.

Q: Is it time for decentralized exchange platforms on the blockchain?

A: Absolutely. Not only decentralized but also end to end encrypted. Decentralization does not equal security. Serious protection must be added for coins in transit and at rest and for wallets and users.

Wallets and exchanges should employ a strong 2-factor authentication (2FA) protocol on top of the end to end encryption of the communication between the user’s device and the exchange.

Wallets and Cryptocurrencies must be protected in a way that coins  belonging to a particular user and wallet cannot be stored in another user’s unauthorized wallet. This type of protection would have solved all of the hacks that happened, so far, in which coins were extracted from exchanges or directly from users wallets.

Multiple layers of encryption (both in transit and at rest) combined with user and wallets authentication techniques and at the minimum 2FA enforced for all account holders are a must to reduce the attack vectors.

The exchange servers must also be zero knowledge servers and it must be impossible for them to decrypt user’s wallets without user’s decryption key(s). The decryption of one’s wallet should be done and only initiated by the user and never by the server.

No decryption keys should be stored on the server and no data in the clear should be stored anywhere.

Another major problem that we see is that cryptocurrencies could be used in any wallet without restrictions, whether the wallet owners are the legitimate owners of the cryptos, or not

Q: Should exchanges have bug bounties?

A: Absolutely, they should. It’s a very good way for the community and the hackers for good (aka the “white hat hackers”) to probe the exchanges from the outside without actually producing damages or stealing the coins. But that only identifies the problems and mistakes in the coding. Repairs must be made immediately and more testing must be done after that. After all, cybersecurity it’s a lifestyle. It’s not a project or a process. Threats are constantly evolving, and emerging, and the attacks will continue coming because….this is where the money is!

So a continuous bug bounty program must be carefully created and managed and, of course, the security researchers must be paid for their findings.

Q: Will the hacks ‘chase away’ institutional investors?

A: I would say probably not. Institutional investors are familiar and comfortable with a certain level of risk. But definitely they will think twice before putting all their money into a single exchange. Anywhere between 2-5 exchanges is probably a safer place to be.

Q: Will blockchain be a thing of the past with quantum servers which can ‘crack’ the encryption?

A: In the current design, yes. But there are chains like our BL∆KChain that not only is end to end encrypted with multiple layers and ciphers but is also truly immune to quantum computing attacks. Currently there is nothing in the world, personal, corporate or government that could break the encryption on the BL∆KChain, BL∆KWallet, BL∆KXchange and the BL∆KCoin.

Q: Please give any additional thoughts or opinions with respect to the blokchain industry

A: Blockchain is, despite all these problems, a revolutionary technology that will change the way we conduct business, the way we make payments & bank, the way businesses optimize their operations and the way governments become more efficient & distributed.

Blockchain via BL∆KFX has the potential to change the lives of the almost 3 billion people that are currently underbanked or not banked at all, by allowing them to enter the world’s economy, banking and payments. It has to be Fast Secure and Reliable (FSR). These conditions are well designed and implemented in the BL∆KChain, BL∆KWallet, BL∆KXchange and BL∆KCoin.

Today, without end-to-end security, you have nothing. Otherwise you are asking for trouble.

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IOSToken (IOST), Ethereum Classic (ETC) and NANO are Top Performers In The Last 24 Hours

The cryptocurrency markets are showing some signs of much needed life following the Bithumb hack that rocked the crypto-verse early Wednesday morning. Many crypto traders noted that Bitcoin (BTC) managed to hold its own this time round during the hack. The King of Crypto only decreased in value by 1.3% and has since continued to rise to current levels of $6,769: an increment of 1.72%.

With the stability of Bitcoin (BTC), the total market capitalization has increased by around $10 Billion from levels of $282 Billion only yesterday, to current levels of $290 Billion. It is a huge step forward in the much needed market recovery.

In the past 24 hours, a few major cryptocurrencies have led the rest in impressive gains.

IOSToken (IOST) is one of the digital assets that has performed well in the last 24 hours. The token had earlier peaked to levels of $0.033 before settling to current levels of $0.0313. IOST has increased by 6.42% in the last 24 hours and helped the crypto markets gain the much needed volume for a recovery.

IOST performance in the last 24 hours. Source, coinmarketcap.com

Ethereum Classic (ETC) has also been doing pretty well since Coinbase added the coin to its list of digital assets on the platform. The coin is currently trading at $17.09 and up 13% in the last 24 hours. Nano (NANO) has also shown tremendous improvement in the last 24 hours. The coin is currently up 10% in the same time period and currently trading at $2.97. Basic Attention Token (BAT) is also outshining the rest with a 12.55% increment in the last 24 hours. The token is currently valued at $0.277.

Summing it all up, the cryptocurrency market seems to be experiencing a recovery that might be tested as we inch closer to the weekend. The hacks on both Coinrail and Bithumb seemed to have not scared away all the investors in the crypto-verse.

Dr. Robert Statica, who is an expert in cyber security as well as cryptocurrencies and blockchain, was asked by Ethereum World News about the effects of the two hacks on the future of the crypto-markets. One question many crypto-traders have been asking, is if the repeated hacks will scare the institutional investors from making an entry into the industry.

Dr. Statica would offer his opinion on the above issue by saying the following:

Institutional investors are familiar and comfortable with a certain level of risk. But definitely they will think twice before putting all their money into a single exchange. Anywhere between 2-5 exchanges is probably a safer place to be.

He is also the CEO and President of BLAKFX: an advanced blockchain project that has the potential of changing the lives of almost 3 Billion people that are currently unbanked. The project will do this by allowing them to enter the world’s economy, banking and payment systems.

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Bitcoin (BTC) Still Stable After the Bithumb Hack

Many crypto-traders and enthusiasts woke up to news of a hack on popular South Korean Exchange, Bithumb. The financial enormity of the hack has been estimated at $30 Million in coins stolen by the hackers. The exchange made the announcement via twitter and said the following:

The exchange would also halt all deposits and withdrawals on the exchange and also convey the same via twitter.

Normal operations are yet to be announce by the exchange as it is requesting users not to deposit any funds to any of the Bithumb wallet addresses.

Observing the time the hack happened and checking the price of Bitcoin (BTC) during the event, we find that the King of Crypto was valued at $6,,700 levels. BTC would then drop to the levels of $6,612 due to the hack. This is a decline of only 1.3%. The King of Crypto is currently trading at $6,671 at the moment of writing this.

This indicates that the hack on Bithumb has not had any adverse effects on Bitcoin. This then translates that the entire crypto market has held steady amidst news of this hack. Checking the total market capitalization, we find that the value currently stands at $285.5 Billion.

The hack has managed to chip off around $5 Billion in total market capitalization which is 10 times less than what was lost during the Coinrail hack on June 10th. Also to remember on that day, is that 4 prominent exchanges were served with subpoenas by US Authorities who wanted their trading data to further their investigations on Bitcoin manipulation by the same exchanges. These two events resulted in the loss of approximately $50 Billion in the total crypto market capitalization over a two day period.

Crypto traders have proven their ability to handle another hack by not panic selling en masse as was seen during the above mentioned dates of June 10th and June 11th. Also to not is that before the Bithumb hack, the cryptocurrency markets were indicating some signs of recovery with Tron (TRX) and Ontology (ONT) leading the charge with double digit gains only yesterday. The current stability indicates that the upward path to a market recovery might be postponed by a few hours.

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Coinrail Exchange Hacked, Loses Possibly $40 Million in Cryptos

Coinrail, a crypto exchange based out of South Korea, said on Sunday its platform was hacked with cryptocurrencies that appeared to worth $40 million at the time of the event.

According to Coinrail’s website, the exchange has already suspended its service to conduct system maintenance since it has suffered from what it calls a “cyber intrusion,” which resulted in a range of ERC-20 based tokens stolen from the platform.

However, Coinrail has so far only given names of some of the tokens that were hacked without disclosing their exact amount at stake, such as the NPXS token from the Pundi X project, ATC from Aston and NPER project’s token NPER.

Yet, a blog post published by Pundi X on Sunday hinted that the alleged hacker may have stolen 1,927 ETH, 2.6 billion NPXS, 93 million ATX, 831 million DENT coins as well as six other alt-coins also in significant amounts.

These assets in total worth around $40 million at the time of the hack and have since then dropped to $30 million as of press time, according to data from CoinMarketCap.

Pundi X’s article suggested that following the hack, Coinrail has alerted the project on Sunday an ethereum address which is believed by Coinrail to be associated with the alleged hacker. That address is now flagged as “Fake_Phishing1432.”

Data from Etherscan.io shows the address has tried to sell some 26 million NPXS tokens at IDEX, a decentralized ethereum asset exchange, right after it received 2.6 billion of the same from another address that is also now labeled as a suspicious account – “Fake_Phishing1431.”

Coinrail and Pundi X claimed that IDEX has frozen the assets sent from Fake_Phishing1432 upon investigation, as such the NPXS tokens are not liquidated.

In addition, transactions associated with Fake_Phishing1431 shows it has received a range of cryptos from one single address several hours before Coinrail reported the hack, which, besides ETH, NPSX, ATX, DENT, also included tokens from other projects such as Kyber Network, Storm, Jibrel Network, and Tron.

Data from etherscan.io further indicates that following the hack, while the NPXS was sent to IDEA, other stolen tokens appeared to have been sent for trading to EtherDelta, another decentralized cryptocurrency exchange.

However, it remains unclear at this stage whether the assets had been liquidated or not. Coinrail could not be reached for an update. EtherDelta has not yet responded to CoinDesk’s enquires for comments.

Coinrail said on its website that 70 percent of its reserve are safe as they have been moved to a cold wallet which is not accessible through the internet.

For the rest 30 percent that were compromised, the firm said two-thirds of them are currently frozen – that include NPXS, ATX, NPER. Meanwhile, it’s still investigating on the rest one-third with “police, investigators, relevant exchanges and project developers.”

Data from CoinMarketCap showed the platform was ranked around 90th largest around the time of the hack, with some $2 million 24-hour trading volume on the site. Its data is currently not available on CoinMarketCap due to the system suspension.

Hack image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Cryptos Dump as Korean Exchange Coinrail Gets Hacked

A few hours ago crypto markets plunged losing over 14 billion dollars in just a few hours. At the same time news emerged that South Korean crypto exchange Coinrail had suffered an incursion resulting in the theft of various altcoins.

According to twitter posts from the company there had been a ‘cyber intrusion’ with Pundi X (NPXS) suffering losses;

Coinrail is not one of the major exchanges; in fact it is relatively obscure ranked way down at 90th in terms of trade volume according to coinmarketcap.com. The exchange handles just under $2.7 million in volume per day. The majority of that is used to trade an equally obscure coin called Pundi X. The mission of Pundi X claims to “make buying cryptocurrency as easy as buying bottled water. As the Walmart and 7-Eleven of cryptocurrency, we want users to buy and use cryptocurrency anytime anywhere.”

Coinrail followed up with a post stating (translation);

“At 15:00 investigation, the other exchange, coin developers are working hard to recover the total amount of the leaked coins such as Ferndix, Enfer, and Aston in cooperation with two-thirds of the amount collected or recovered, as well as the cooperation of the investigation and related institutions for the remaining coins.”

Their website was down at the time of writing with the following message (translation);

“We are currently in the process of checking the server to provide a stable service environment. The system is being checked for hacking attempts. Some coins (Fund X, NPXS) have been identified and are being checked for additional coin damage. Currently, coins are under negotiation to prevent damage, and some coins may not be able to transmit to the network.”

It is unlikely that the hacking of an insignificant exchange trading a minor altcoin would cause Bitcoin and all other cryptos to slash billions of dollars from their market caps. But that is pretty much what has just happened over the past few hours.

Bitcoin fell from $7,620 to $7,320 in a quick dump that lasted 90 minutes. Ethereum did likewise shedding 5% in a similar timeframe. Markets have not moved much since the beginning of June but this latest fall has sent them back to a ten day low last seen at the end of May. At the time of writing crypto markets are worth $324 billion, down over 30% from May’s high of $470 billion.