CRYPTOCURRENCY PRICES DROP AFTER ANOTHER SOUTH KOREAN EXCHANGE HACK
The price of several well-known cryptocurrencies dropped today after the second largest South Korean exchange announced that it had been hacked. In a tweet, Bithumb said that hackers had managed to steal currencies worth more than $30 million making this the second major cryptocurrency exchange hack this month. Two weeks ago, Coinrail, a South Korean exchange lost more than $37 million worth of digital tokens.
After the hack was reported, Bithumb revealed that it had halted all transactions and moved investor assets to a so-called cold wallet. Bithumb is the sixth largest exchange in the world with daily transaction volumes of more than $300 million.
The current hack confirms cryptocurrency concerns from critics. Their main criticism is that digital assets are an unsustainable means of exchange because of their risks. As a result, many businesses are not willing to accept the currencies because of how easy it is to lose them. With regards to fiat currencies, businesses are usually at ease because the funds are stored in safe banks that operate under tough regulations.
After the news, the price of Bitcoin dropped by 1.2% while Ethereum and Litecoin dropped by 0.8% and 1.0% respectively.
Litecoin is currently trading at $94.22. As the LTC/USD pair dropped today, it settled at the important support of $93.50. In recent weeks, the pair has formed an asymmetrical triangle pattern as shown below. Its current price is below the 14 and 28-day moving average. A drop further from the current support will see the pair test the support of $91.18.