Reuters
Security issues continue to dog the cryptocurrency industry after yet another hack of a prominent South Korean exchange.
Bithumb, the sixth largest cryptocurrency in the world according to data from CoinMarketCap, said Wednesday that “some cryptocurrencies worth about 35 billion won [$31 million USD] were seized between late yesterday and early morning today.”
The hack marks the second of its kind inside two weeks after Coinrail said it had $40 million worth of altcoins stolen on June 11 and underlines concerns outsiders have with the digital currency market.
Despite the negative sentiment, crypto prices managed to erase early losses. Bitcoin the world’s biggest digital currency, last traded at $6,754.28, up 0.9% Since Tuesday 5 p.m. Eastern Time on the Kraken crypto exchange.
Why are exchanges prone to hacks?
While lack of adequate security might play a role in the exchange hacks, the transactional process makes bitcoin and other cryptocurrencies a prime target for hackers.
“One disadvantage to bitcoin is its immutability. Once a transaction happens, it can never be undone, which is one of the reasons cryptocurrencies can be a target for hackers,” said Mati Greenspan senior market analyst at etoro.
“However, immutability is also one of bitcoin’s most attractive qualities. The fact that it operates transparently and independently is a clear advantage for many.”
Altcoins follow bitcoin lower
Coins other than bitcoin, known collectively as altcoins, moved higher. Ether rose 0.7% to $534.70, Bitcoin Cash was up 0.2% at $891.10, Litecoin was unchanged at $98.07. XRP the coin that runs on the Ripple protocol, is trading at 54 cents, up 0.1%.
Futures showed small gains in early afternoon trading. The Cboe July bitcoin futures contract rose 0.3% to $6,770, while the CME June contract gained 0.6% to $6,775.