- Bithumb is picking up the pieces after $30 million hack causes panic.
- “It happens all the time” says Litecoin founder Charlie Lee, who believes that the response to the breach has been over exaggerated.
- Hack sees Bithumb’s 24-hour trade volume fall from $374 million to $236 million.
The Bithumb hack has sent shockwaves throughout the crypto sphere. As the once sixth biggest crypto exchange in the world, many have questioned how hackers have been able to walk away with $30 million. While others are up in arms about the breach, one man is calling for cool heads during the fallout. Charlie Lee (Litecoin Founder) has seen it all over the years, and he feels that this hack – along with others – is being blown out of proportion.
Not as Bad as it Looks
During a recent CNBC interview, Lee said that the Bithumb hack “doesn’t really change the fundamentals of Bitcoin.” He believes that this and other hacks are more common than people tend to realize. With the release of these stories amounting to fear mongering – “it happens all the time” said Lee. Making a comparison, he feels that the hack of a crypto exchange doesn’t affect Bitcoin’s (BTC) fundamentals in the same way as a bank robbery shouldn’t impact the price of gold.
Bithumb Shoulders the Blame
The hacking of Bithumb has been linked to a recent Bitcoin price drop, as it’s the latest in a long line of hacks that have spread fear amongst investors. Lee thinks that this price drop is par for the course, and it isn’t anything different to what has happened in cases of previous hacks. He has also put the blame at the door of Bithumb for the incident occurring, “If the exchange does not protect the coins well enough and gets hacked, it doesn’t really change the fundamentals of the coin they are protecting.”
Plenty Still to Learn
Crypto exchanges are having to learn about how to deal with the security faults as they happen, with Lee believing that “there is a lot to improve.” It’s hard to argue against Lee’s statements, as exchanges at both ends of the spectrum seem to be susceptible to security breaches. He also stressed that investors need to start taking further responsibility for protecting their own funds. Lee feels that there has been a “paradigm shift for personal finances with Bitcoin,” so people have to get used to guarding their investment “much better than traditional finances.”
Under the Radar Improvements
In spite of Bitcoin’s value plummeting by approximately 60% since the turn of the year, Bitcoin’s “going really well” according to Lee. His belief is that Bitcoin’s network has come on leaps in bounds as of late, with Bitcoin’s current value “disjointed from the actual development of Bitcoin.” Lee is also backing a full rebound in Bitcoin’s price. Yet, he remains vague on when that will likely occur, “I’ve been in this space for seven to eight years now and I’ve seen bear markets last three to four years now. So, this one could be a three to four-year market or it could recover tomorrow.”
Bithumb Slides Down to 7th
Lee’s comments have come about as Bithumb picks up the pieces after its latest stumble. As we’ve previously reported, the exchange had to take measures to protect clients by temporarily suspending all payments and deposits. The hack saw the exchange’s 24-hour trade volume fall from $374 million to $236 million. This has seen Bithumb drop to down to 7th place among the largest crypto exchanges by trade volume.