As the week comes to a close, let us reflect on and digest all the news — most of which was negative, that happened in the cryptocurrency arena affecting Bitcoin price.
Oh Look, Another Exchange Hack
Tuesday evening, popular South Korean cryptocurrency exchange Bithumb reported a system breach that resulted in approximately $31 million worth of cryptocurrencies being stolen. Coincidentally, in the days following the hack, there was a large marketwide dip — Bitcoin and Ethereum dropped 11 and 15 percent, respectively.
Even those who don’t use Bithumb weren’t very pleased after the hack — as Bitcoin transaction speeds and fees soared, due to the exchange moving huge amounts of cryptocurrencies away from its hot wallets.
On a small positive note, Bithumb promised to fully reimburse all those who had cryptocurrency stolen from them.
(More) Trouble In Paradise For EOS
Decentralized application platform EOS has had a bumpy road since finally rolling out their mainnet last week — which was two weeks behind schedule. EOS drew more criticism this week when the team of 21 voted block producers circumvented their own council of arbitration and froze seven accounts that were accused of holding stolen funds. Many critics argue that EOS is guilty of violating ‘decentralization’ and ‘immutability’, the most basic essences of blockchain technology.
India’s Crypto Confusion
Zebpay — ‘India’s Leading Bitcoin And Cryptocurrency Exchange’ announced on Thursday, possible disruptions to their bank accounts due to an April circular from the Reserve Bank Of India (RBI). The circular states:
[…]with immediate effect, entities regulated by the Reserve Bank shall not deal in Virtual Currencies (VCs) or provide services for facilitating any person or entity in dealing with or settling VCs.