Cryptopia Hacked. Will BTC Crash?

[1Referee]

Plus, hacked coins aren't very fungible. After police and blockchain analytics companies get involved, thieves can't easily cash out.

The interesting aspect of these hacks, while they are horrible events for those who are affected, is that they make sure that a lot of coins are taken out of circulation, because as you also pointed out, there is very little incentive to have them be sent to a centralized exchange with the risks of losing these coins.

Of course, it doesn't mean these coins won't eventually find their way to an exchange, but hey, it will be a very time consuming process, and it requires the hackers to properly distribute coins in a way that if an exchange happens to notice shady activity, they only lose a small percentage instead of all "their" coins.

[1715662218]

1715662218

[exstasie]

Plus, hacked coins aren't very fungible. After police and blockchain analytics companies get involved, thieves can't easily cash out.

The interesting aspect of these hacks, while they are horrible events for those who are affected, is that they make sure that a lot of coins are taken out of circulation, because as you also pointed out, there is very little incentive to have them be sent to a centralized exchange with the risks of losing these coins.

Outside of the initial market shock, it reinforces demand too. People who lose bitcoins in an exchange hack will want to reaccumulate their coins. So not only are the hacked coins being removed from circulation, but new demand (from old buyers) is being created too.

[pooya87]

Plus, hacked coins aren't very fungible. After police and blockchain analytics companies get involved, thieves can't easily cash out.

The interesting aspect of these hacks, while they are horrible events for those who are affected, is that they make sure that a lot of coins are taken out of circulation, because as you also pointed out, there is very little incentive to have them be sent to a centralized exchange with the risks of losing these coins.

Outside of the initial market shock, it reinforces demand too. People who lose bitcoins in an exchange hack will want to reaccumulate their coins. So not only are the hacked coins being removed from circulation, but new demand (from old buyers) is being created too.

is it really though?
the hackers will eventually mix the coins and "clean" them for selling so they are not really out of circulation as you mentioned. additionally the people who get hacked and lose money have more tendency towards being disappointed and stay away from investing back in bitcoin at least for a while so they may not come back to the market for some time.

[Seeker#9]

I think Cryptopia is still a small exchange compared to Mt Gox, aJapan-based exchange which handled 70%of all bitcoin transactions worldwide before it is hacked, it is actually the largest exchange in the world at that time. Cryptoia is also my first trading exchange before I switched to another exchange. I think the Cryptopia hacking will only cause a minimal price reaction but it will not in the same level when Mt.Goxis hacked.

[marcous]

Yes! and that has happened ... Bitcoin is down again.
And see the price of cryptocurrency is difficult to recover. again the problem of hacking was the originator of FUD. Even though hack problems often happened I guess

[imstillthebest]

I think Cryptopia is still a small exchange compared to Mt Gox, aJapan-based exchange which handled 70%of all bitcoin transactions worldwide before it is hacked, it is actually the largest exchange in the world at that time. Cryptoia is also my first trading exchange before I switched to another exchange. I think the Cryptopia hacking will only cause a minimal price reaction but it will not in the same level when Mt.Goxis hacked.

Both cryptopia amd mt goxis are only small time when compared to the giant binance .  if binance will got hacked someday i dont know if there will be a value left with btc  .

 thankfully exchanges like binance are hard to cracked because they have a top notched security  . they cant become the number #1  if they are crappy tho  .

Now back to cryptopia . cryptopia hacking incedent is already done and the value of btc as well as other cryptos are not affected  . thank goodness

[Aqualung89]

According to me this situation can be completely proportional to the situation. No more trust left now. Who knows how long this situation will continue.

[Baofeng]

Yes! and that has happened ... Bitcoin is down again.
And see the price of cryptocurrency is difficult to recover. again the problem of hacking was the originator of FUD. Even though hack problems often happened I guess

What do you mean down again? The price seems to be stable even after the news of the hack surface about a week ago. We can say that there's no effect whatsoever to the price, so that's good news for everyone.

According to me this situation can be completely proportional to the situation. No more trust left now. Who knows how long this situation will continue.

Again, I don't understand what do you mean by trust here. Trading continue to flourish among different exchanges. And there's even a negative news regarding the withdrawal of CBoE ETF proposal, also didn't affect the price, so I guess its either the bears have been exhausted or investors doesn't care about any negative news as of today.

[mirakal]

Cryptopia Hacked. Will BTC Crash?
I think they eat people money and than they say their Exchange hacked.

This hack is not a big news, although cryptopia has been operating for many years but they were not one of the top exchanges in the market.

If I want to trade, I would definitely choose an exchange where I can trade with good volume, I will disregard this exchange because I know they have a very low volume. However, there are still people who choose a small exchange, maybe not so familiar with the popular exchanges and also they maybe keep their coins in an exchange and now it seems like it's gone forever.

[figmentofmyass]

the hackers will eventually mix the coins and "clean" them for selling so they are not really out of circulation as you mentioned.

it depends on the scale of the hack, doesn't it?

has anyone kept track of the 120k bitcoins stolen from bitfinex in 2016? i assume bitcoin mixers don't have nearly enough liquidity to service that effectively. it's like hiding in open sight with chainalysis, elliptic and multiple police agencies staring at you!

[adaseb]

The exchange is being really unprofessional in the way they are handling things. For one its been almost 2 weeks since the hack and there is no updates on their website and they didn't even send an email alerting people of this hack.

I understand that its an ongoing investigation and they can't release details since the Police are investigating but they should provide more accurate updates on their website and over email.

Most people don't frequent Discord or Twitter and are probably wondering what is happening to their coins.

[dutchlincoln]

yes, i'm one of those. Whats the discord adress you are talking about?

[VeeraS]

Cryptopia Hacked. Will BTC Crash?
I think they eat people money and than they say their Exchange hacked.

it seems that these rumors do not destabilize the market too deeply, because bitcoin remains in the range of 3k. so I don't think there is a swooping movement due to hacking rumors for the Cryptopia exchange.

[joshy23]

Cryptopia Hacked. Will BTC Crash?
I think they eat people money and than they say their Exchange hacked.

it seems that these rumors do not destabilize the market too deeply, because bitcoin remains in the range of 3k. so I don't think there is a swooping movement due to hacking rumors for the Cryptopia exchange.

Yes, there's no major damage that has been done after this reported hack happen with cryptopia, the market still moving the same and there's no
sign of more bearish nor to have any bullish but a flat market that still ongoing, we do have lots of news and unlike before where holders start to
panic from each bad or good news that showed up around.

[mirakal]

Cryptopia Hacked. Will BTC Crash?
I think they eat people money and than they say their Exchange hacked.

it seems that these rumors do not destabilize the market too deeply, because bitcoin remains in the range of 3k. so I don't think there is a swooping movement due to hacking rumors for the Cryptopia exchange.

Yes, there's no major damage that has been done after this reported hack happen with cryptopia, the market still moving the same and there's no
sign of more bearish nor to have any bullish but a flat market that still ongoing, we do have lots of news and unlike before where holders start to
panic from each bad or good news that showed up around.

That's what I'm saying, because cryptopia is not a big exchange and the entire crypto market is about billions, they only have millions.

I'm guessing, it's the first hack of the year, right? It should move the price down ward a little bit but we did not see it.
People does not easy panic now and they also do not allow themselves to get hype and that resulted to a little stable price of BTC, this year might be for recovery.

[btc_angela]

Cryptopia Hacked. Will BTC Crash?
I think they eat people money and than they say their Exchange hacked.

it seems that these rumors do not destabilize the market too deeply, because bitcoin remains in the range of 3k. so I don't think there is a swooping movement due to hacking rumors for the Cryptopia exchange.

Yes, there's no major damage that has been done after this reported hack happen with cryptopia, the market still moving the same and there's no
sign of more bearish nor to have any bullish but a flat market that still ongoing, we do have lots of news and unlike before where holders start to
panic from each bad or good news that showed up around.

That's what I'm saying, because cryptopia is not a big exchange and the entire crypto market is about billions, they only have millions.

I'm guessing, it's the first hack of the year, right? It should move the price down ward a little bit but we did not see it.
People does not easy panic now and they also do not allow themselves to get hype and that resulted to a little stable price of BTC, this year might be for recovery.

I don't think that people will not panic for any negative news, they still are and this market is still based on speculations so I wouldn't discount that possibility. Yes, its the first hack of the year and I'm sure there will be more, sad to say. Maybe cryptopia doesn't have a wide audience that's why the damage is just minimal but I'm sure if a exchange is in the top trading volumes, the effect will be catastrophic.

[adaseb]

yes, i'm one of those. Whats the discord adress you are talking about?

Here is an invite link:
https://discord.gg/279Jcc

However be warned, I don't think there is any actual Crytopia admins who frequent that Discord, and even if they did they certaintly won't be answering any questions since there is still an ongoing investigation.

Its mostly the users of Crytopia who frequent that Discord. However its probably as up to date as it can get since they never update their website or send out any emails of what is the progess with the hack.

[Rune]

Why would cryptopia getting hacked make bitcoin crash more its already crashing so hard
Cryptopia is pretty small potatoes compared to the rest of the ecosystem.

[mirakal]

Why would cryptopia getting hacked make bitcoin crash more its already crashing so hard
Cryptopia is pretty small potatoes compared to the rest of the ecosystem.

That's true, I don't understand why people would think it will affect BTC, we have had a lot of bigger hacks in the past and bitcoin survives all of them.
Now, this happened but cryptopia is very close to a small exchange only, they only have few traders and people now are smarter not to put their money in an exchange.

[whiteblue]

It seems like hackers and thieves who steal all the assets from the cryptopia exchange are smarter, they won't sell their assets at very cheap prices like now, they will wait until prices become expensive as they did last year and at that time they will make the price fall again because the assets of the thieves are sold when the price is high.