South Korean exchange hacks causing Bitcoin price drops, but less consequential.

[exstasie]

I didn't know a great deal about S Korea until it became crypto hot.

The more I learn, the more of an incompetent fuckhole it seems. The exchanges are bent, leaky and run by children. The government is too dim to regulate or tax them or notice this monster appear out of nowhere like Battlestar Galactica.

How do they manage to get the trains running on time?

What you're describing is basically how all exchanges were run 5-6 years ago. There's been too many "hacks" to count. Given that Koreans weren't very interested in cryptocurrencies before 2017, it's not exactly a surprise to find some of their exchanges are sub-par one year later.

Also, you might consider that South Korean exchanges are being heavily targeted by North Korean hacking groups. This is probably being sponsored by the North Korean government.

Just 50-60 years ago, South Korea was on par with the poorest African countries. It's now #14 richest in the world while being very poor in natural resources. I'm pretty sure it's not "an incompetent fuckhole"......

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[kofibee12]

Such news don't have much effect on bitcoins nor altcoins. The exchange total volume is small  compared to what individuals and other cryptocurrency exchange hold. It can't have much effect

[vintages]

I am still in doubt if it was really the hack that caused the drop in the price of bitcoin because even before we started noticing the change in the price if bitcoin, the Korean exchange haven't got hacked but the price  was dipping seriously. The changes in the price can be as a result of anything though not only from the exchange hack.

[talkbitcoin]

Such news don't have much effect on bitcoins nor altcoins. The exchange total volume is small  compared to what individuals and other cryptocurrency exchange hold. It can't have much effect

what are you talking about? Bithumb was the 6th exchange in daily trading volume when it got hacked! and that is huge among hundreds of exchanges with different volume levels. them going down hit a lot of users and the hack itself has been huge also. it is $30 million dollar worth of crypto.

[livingfree]

I am still in doubt if it was really the hack that caused the drop in the price of bitcoin.

You don't have to doubt it, bitcoin was back to $6,700 which came back earlier than what we're expecting. And the hack didn't affected the price that much but there's a little bit of pain that we felt.

Such news don't have much effect on bitcoins nor altcoins. The exchange total volume is small  compared to what individuals and other cryptocurrency exchange hold. It can't have much effect

It was one of the biggest exchange although it's based on South Korea and about the effect of such news, you're wrong.

That's how the manipulators are doing to make the market shake, they create such news.

[gentlemand]

I'm pretty sure it's not "an incompetent fuckhole"......

When it comes to this area, it most certainly is.

Their crypto markets seemingly became bigger than their actual stock market for a bit. Despite this there was literally no financial regulation or taxation applied to their exchanges.

All you needed to open one was an ecommerce licence, the same type of licence required to sell tyres or Hello Kitty backpacks. No requirement to protect funds, no requirement for ID, no accountability for anything, zilch. And it was totally untaxed.

I genuinely cannot believe any other developed country would be that incompetent in allowing something so potentially disastrous to spring up unchecked. At the very least they could've applied laws from other areas as a stopgap.

[Idrisu]

I read about this hack news yesterday and I was worried and expecting another dump again but thank God this do not happen.  I believe bitcoin has started building strong muscles to resist negative news and bad events.  I think we should be happy that this hacked do not have effect on price.

[aardvark15]

I am a little surprised that the price hasn’t dropped more due to this hack. It could still drop more but it’s also possible that the price has hit a bottom and that there are enough buyers right now to keep Bitcoin from dropping any lower. As long as there is enough buy support, even bad news may not move the price very much lower, but it’s very hard to predict what investors will do.

[JohnWick_Bitcoin]

Such news don't have much effect on bitcoins nor altcoins. The exchange total volume is small  compared to what individuals and other cryptocurrency exchange hold. It can't have much effect

Actually, there is a news before where koreans hacked the market prices in order for the value of bitcoins to drop because it was very expensive so every news can really affect the thoughts of different investors and the price can pump or dump depending on the situation in the market.

[magneto]

There must have been some kind of buying pressure that has gone long on their positions while it seemed like prices were going to crash down due to this news. Based on this, there may be a possibility of a temporary rally which may take bitcoin prices up to $7k+ before corrections downwards.

But the main thing that I took away from the fact that the hack didn't really result in anything tangible in terms of price movements is that markets have simply matured a lot. No longer is it dominated by one exchange that everyone uses, but there is a variety, and if one has a problem, it's unlikely to affect the entire btc market much.

This is cause for more optimism in the next bull market, as institutional investors are already starting to invest in bitcoin directly or indirectly (through purchasing existing exchanges or building their own).

[exstasie]

I'm pretty sure it's not "an incompetent fuckhole"......

When it comes to this area, it most certainly is.

Their crypto markets seemingly became bigger than their actual stock market for a bit. Despite this there was literally no financial regulation or taxation applied to their exchanges.

You're talking about like an eight-month period. How fast do you think governments move, LOL? It's always foolish to hastily pass laws. They released new regulations in January of this year (obviously their primary concern was KYC).

Are you sure cryptocurrency/exchanges didn't fall under any existing laws, or that exchanges were following all laws? I don't see why exchanges would be absolved of custodial responsibilities (especially with fiat money), or requirements to protect data, pay taxes, etc. just because cryptocurrency isn't legally defined.

I genuinely cannot believe any other developed country would be that incompetent in allowing something so potentially disastrous to spring up unchecked. At the very least they could've applied laws from other areas as a stopgap.

I'm genuinely surprised at your disbelief.

Chinese exchanges operated the same way for many years. Until.......last year? You could fund accounts anonymously (fiat or cryptocurrency), no licenses, no ID (which is why so many westerners used Okcoin.cn). Accountability for anything? Haha, that's funny. I'm fairly sure the major Chinese exchanges were shadow banks, on top of it all.