On Friday afternoon, a number of Twitter users began to notice large withdrawals of Ethereum and ERC-20 tokens from Kucoin’s designated addresses. In the span of about thirty minutes, about $150m worth of ETH tokens left the wallets marked “Kucoin” and “Kucoin 2” on Etherscan.
As the coins that were withdrawn were basically all the capital that was in these addresses, many were quick to assert that it was a hack. But for hours, there was silence on Kucoin’s end, with the exchange’s moderators sharing little information about what had transpired.
A few hours after these suspicious withdrawals, admins of Kucoin’s social media channels asserted that users’ deposits were safe.
While this is true in that users will be compensated, Kucoin just confirmed that the withdrawals were made by a malicious actor as opposed to the company.
Just minutes ago, approximately seven hours after the Ethereum withdrawals, Kucoin revealed that it had undergone a “security iandncident.”
The company’s internal security auditing team found that “part of Bitcoin, ERC-20, and other tokens in KuCoin’s hot wallets were transferred out of the exchange.” The funds that were withdrawn from the exchange comprised a “few parts of our total assets holdings.”
No clarifications were given to the exact specifics of the cryptocurrency stolen, but independent analyses that over $10 million worth of Bitcoin was taken from Kucoin-owned addresses. The $150 million worth of Ethereum and ERC-20 tokens — most of which are in Alchemy, Tether’s USDT, Ampleforth, and Ocean Token — withdrawn seems to be related to the attack. It cannot be properly ascertained of this is the case, though, at least not until a follow-up report from Kucoin.
The funds stolen from Kucoin’s addresses were funds stored in the exchange’s hot wallets as opposed to its cold wallets, which remain “safe and unharmed.”
All users affected by the incident will be compensated by Kucoin and the firm’s insurance fund:
“We are locating the reason for the incident, and will keep you updated once it is confirmed. Please rest assured that if any user fund is affected by this incident, it will be covered completely by KuCoin and our insurance fund.
Kucoin Shares (KCS), the exchange’s Ethereum-based token, is down 11.2% on the news of the hack. It was relatively stable prior to this latest news.
While the ramifications of the hack are still pending, analysts have been quick to say that this accentuates DeFi’s value proposition.
With decentralized exchanges like Uniswap, users always have custody of their own funds, disallowing such large-scale hacks from taking place.
Author: Nick Chong
Bitcoin Could Hit New Yearly High on US Election Risks, Hints Citibank Report
Bitcoin could hit a new year-to-date (YTD) high, abetted in part by the risks surrounding the US presidential election.
The analogy takes cues from a quarterly commodity outlook published by Citigroup. The American banking giant specifically based its report on gold and its potential behavior amid the election season this November. It noted that the precious metal may rise to a new yearly high, stating that the market is underplaying the asset’s ability to grow against the election’s uncertainty.
Bitcoin, which has erratically tailed the gold market since March 2020, fell this week against a similar geopolitical outlook. The cryptocurrency briefly touched $10,100 as the Federal Reserve Chairman Jerome Powell warned about their inability to support the US economy without the second coronavirus stimulus package.
The US Congress delayed the long-awaited financial aid as the Democrats and Republicans argued over the size of the help. Many economists and analysts anticipated that the second stimulus package won’t arrive before the presidential election.
Congress is poised to leave town until after the election without passing a coronavirus stimulus https://t.co/deFM9mVVpd pic.twitter.com/A37dGfdE1E
— CNN Politics (@CNNPolitics) September 23, 2020
The said delay appeared even as the US reported a historically high unemployment rate, a rise in the number of bankrupted small and medium-sized businesses, a resurgence in coronavirus cases. That further led investors to park part of their capital back into the US dollar.
It overall reduced the appeal of other safe-haven and risk-on assets. As a result, Bitcoin, gold, and stocks gave up part of their gains to the stronger dollar outlook.
Bitcoin-Gold-DXY correlation. Source: TradingView.com
But for Citibank, there is still room to grow, at least for gold. The bank wrote in its report:
“The election could be an extraordinary catalyst for gold flat price and volatility skew late in the fourth quarter, even though historically there is no clear pattern for gold trading or price volatility into and after U.S. elections. That is one reason why we expect gold prices to hit fresh records before year-end.”
The Citibank outlook of gold left Bitcoin under a similar upside spell. Its report highlighted that the safe-havens should rise as long as the Fed continues on its expansionary approach to aid the US economy. It would mean ultralow interest rates and higher growth in inflation.
Demand also expects to come from the rest of the world as global central banks strive for interest rates near or below zero. Just two weeks ago, the Bank of England discussed negative lending facilities to boost spending on market-aiding programs.
While a new influx of cash helps the households and businesses, it steals yields from the account of savers. Tyler Winklevoss, the co-founder of the Gemini crypto exchange, said that people should “long Bitcoin” to save their incomes from further depletion.
“If the Bank of England adopts negative interest rates, they would be paying you to borrow. You couldn’t buy a better advertisement for Bitcoinbut u can take their money and go long bitcoin.”
Bitcoin was trading about 45 percent higher on a YTD timeframe.
Wealth Manager Explains Why Bitcoin Won’t Become The AOL Or MySpace of Crypto
Bitcoin draws comparisons to just about everything under the sun. Gold, the internet, even rat poison. But comparisons with the fossils of the early internet age like AOL or MySpace? One wealth manager with a focus on crypto explains why this simply will not be.
Some of the most brilliant minds in the world and big-name investors from the dot com boom also believe in Bitcoin. Venture Capitalists Tim Draper and Marc Andreessen from Andreessen Horowitz immediately come to mind.
Andreesen, a tech entrepreneur who built his empire from riding the waves of the early days of the internet, says Bitcoin is as powerful as the PC, and the internet.
The transformative financial technology is a layer for the future to eventually be built on, much like the early days of TCP:IP and early PCs. It is not quite there, but that hasn’t stopped the crypto asset’s market cap from reaching $200 billion.
The $200 billion market cap cryptocurrency has drawn comparisons with dot com companies that have since gone defunct or were dethroned.
The first comparison was positioning Bitcoin next to MySpace. MySpace was the first major social network to exist and get its footing, yet it failed to evolve and stay ahead of the competition. Eventually, from MySpace’s fall arose Facebook, Twitter, Instagram, and TikTok – today’s new top giants.
Could Bitcoin fall the same fate? No, says Andy Edstrom, author, wealth manager, and head of institutional at Swan Bitcoin. The self-proclaimed “hard money enthusiast” says that following MicroStrategy CEO Michael Saylor’s notion that any tech brands with a $200 billion or more valuation, make them a clear “category winner” is a smart play.
In the thread, another category comparison came up, putting Bitcoin next to the king of dial-up internet in the early days of modem technology, AOL.
BTCUSD Weekly Long-Term Technology Adoption Curve | Source: TradingView
America Online exploded in growth and visibility during the peak of the dot com boom, reaching a valuation for $200 billion – the same about as Bitcoin.
Today, the company is a shadow of its former self, best left to the horrid-sounding memories of connecting via the phone line.
Edstrom points out that AOL’s peak valuation was achieved during the dot com boom, meanwhile, Bitcoin has maintained this valuation after the crypto bubble popped.
Once Bitcoin’s uptrend begins again, it will become the true test of if the asset evolves into what the likes of Draper and Andreseen see in its potential, and to the incredible prices that some experts predict.
Author: Tony Spilotro
‘Bulls have won’ — Bitcoin whale clusters suggest BTC trend reversal
Home / Bitcoin / ‘Bulls have won’ — Bitcoin whale clusters suggest BTC trend reversal
Bitcoin whale clusters show the $10,407 level has turned into a strong support area, raising the chance of a renewed bullish uptrend.
Tags Bitcoin BTC Bulls Clusters Reversal Suggest Trend Whale won
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It’s been quite a boring month for Bitcoin. After plunging around $2,000 at the start …
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