As you probably read, South Korean exchange Bithumb was recently hacked, registering a loss of more than $30 million. However, the market reacted slightly different this time, as it somehow managed to remain on the green, despite registering an initial drop.
Like expected, a lot of important figures in the cryptocurrency world talked about this, including Litecoin founder Charlie Lee, which said that the drop is a ”typical reaction of the market to the news about the hack and this happens all the time”, due to people being concerned about the security of their assets.
BTC won’t be affected that much
The man behind Litecoin also added that the hack of a crypto exchange can’t affect Bitcoin’s fundamentals like a bank robbery, for example, does not affect the price of gold, according to CoinTelegraph.
“If the exchange does not protect the coins well enough and gets hacked, it doesn’t really change the fundamentals of the coin they are protecting.”
Lee says that crypto exchanges are now exploring the market and trying to find new ways of better protecting customers’ funds. He also added that even though the process is improving, there is still a lot to improve.
One aspect he also covered in the interview for CNBC, where he talked about Bithumb’s issue, was the ”paradigm shift for personal finances with Bitcoin.” Basically, what he was trying to say is that people need to get used to protecting their coins much better than they do with their traditional finances.
Looking forward to a serious price increase
Charlie Lee said that Bitcoin is still doing very well, considering the drop by 60-70 percent over the past year, as the network is getting stronger and stronger. Also, he expects the price of a coin to be ”disjointed from the actual development of Bitcoin”, as well as a serious increase in the near future.
“I’ve been in this space for seven to eight years now and I’ve seen bear markets last three to four years now. So, this one could be a three to four year market or it could recover tomorrow.”