Market loses millions of dollars supposedly due to Coinrail exchange hack
The digital currency exchange Coinrail has been hacked last Sunday, June 10, 2018. The loss of $37 to $42 million of token funds has provoked a panic amongst investors and the loss of $50 billion by the whole market, as the majority of media outlets now tells. Interestingly, the exchange itself is no match for Coincheck, not to mention Mt Gox when it comes to both its size and operations volume.
The downfall of Bitcoin (from around $7600 in June 9 to $6477 at the press time) might have been long in coming. This makes the security breach of Coinrail merely a catalyst of what was bound to happen anyway.
Cryptocurrency observer Joseph Young has noted that some people confused the name of this organization and the vast South Korean railroad management company.
Small South Korean cryptocurrency exchange Coinrail experienced a $40 million hacking attack.
— Joseph Young (@iamjosephyoung) June 11, 2018
Local users mistook Coinrail for Korail (national railroad operator in Soith Korea) and panicked, thinking they couldn't get home because of a Korail hack.
Made my laugh out loud
According to the press, banks knew about suspicious transactions on this particular exchange even before the hack. This was a main reason why they had not expressed willingness to cooperate with this brokerage in the past.
Key crypto assets solen include NPXS, ATX, NPER and DENT, as seen from the exchange statement shared in the media.
The biggest downside of the hypothesis that Coinrail is solely to blame for the current market dip is the aforementioned size of the exchange. One can also see that there were other major reasons for investors to turn pessimistic this week, especially the new questions raised by the U.S. financial regulators.
Image courtesy of Coin360 (status of major coins on May 11 in comparison to May 10, 2018)