Cryptocurrency markets continue to find support near monthly lows. Amidst positive announcements, exchange hacks, and mainstream adoption, the cryptocurrency sector is moving into the public view. At press time, 74 out of the 100 top cryptocurrencies are in the green.
Bitcoin, currently ranked #1 by market cap, is up 1.36% over the past 24 hours. BTC has a market cap of $115.51B with a 24 hour volume of $3.72B.
Chart by CryptoCompare
Bithumb Hacked for $31.5 Million
On June 20, Korean cryptocurrency exchange, Bithumb, was hacked for nearly $30 million USD in cryptocurrencies.
A post on the Bithumb blog provides clarity on the situation:
“We noticed that between last night and today early morning, about 350,000,000,000 KRW worth of cryptocurrencies have been stolen. However, this loss will be compensated by Bithumb’s own reservoir, and all assets of our customers are securely saved in Bithumb’s cold wallets, hence all asset is completely safe and secured.”
The Bithumb hack marks the second South Korean exchange hack this month.
Coinrail, another highly popular Korean cryptocurrency exchange, was hacked for $30 million USD on June 10.
Bitcoin Transaction Fees Rise Following Bithumb Hack
Following the Bithumb hack, Bitcoin transaction fees dramatically rose from $0.55 to nearly $3, with average confirmation time climbing from 6 to 20 minutes.
The massive increase in Bitcoin backlog was confirmed to be directly connected with the Bithumb hack — data available via OXT shows Bitthumb overpaying up to 100x on fees in order to consolidate hot wallet capital.
Currently big backlogs and high fees on the bitcoin network. Just confirmed that it is Bithumb, cleaning out their hotwallet. pic.twitter.com/21ENfmZj56
— Sergej Kotliar (@ziggamon) June 20, 2018
The network congestion caused by rapid mid-week consolidation is temporary, but the long-term consequences of the Bithumb hack on the South Korean regulatory environment could produce more stringent restrictions on exchanges.
Ethereum, currently ranked #2 by market cap, is up 2.02% over the past 24 hours. ETH has a market cap of $53.74B with a 24 hour volume of $1.53B.
Chart by CryptoCompare
Freedom of Press Foundation Receives 1000 ETH
On June 18, 2018, Freedom of the Press Foundation received $540k worth of Ethereum after extending donation options into cryptocurrency.
Through a generous initial donation, FPF received 1000 ETH ($540,000 USD) on the first day of accepting cryptocurrency from blockchain startup, Mainframe.
In a blog post addressing their donation, Mainframe states:
“This donation stems from the mutual goal to fight not only for a free press, but for a free people in a digital age: free from the chains of censorship, free from the tyranny of unchecked surveillance, and free to use our data how we want.”
Brewing Giant Anheuser-Busch InBev Launches Ads with Ethereum Marketing App
Two weeks ago, Anheuser-Busch InBev brewing company took an industry-forward initiative and launched its first ad campaigns through the Kiip mobile marketing app, which utilizes the Ethereum protocol to record ad data analytics.
The Kiip marketing app aims to use blockchain to improve data transparency and prevent mobile ad fraud by making their campaign database available to everyone.
In the official press release, CEO of Kiipp Brian Wong said:
“Blockchain’s magical impact comes in the form of its immutable and decentralized ledger technology… We saw this technology’s potential to impact several major areas of the advertising world, including supply-chain transparency, campaign data reconciliation and viewability verification.”
The move by the Belgium-based brewing company indicates a step forward in the integration of blockchain for improved efficiency across industries worldwide.
AB InBev’s Global Marketing Vice President Lucas Herscovici noted:
“We’re building a company to last for the next 100 plus years and that can only be done by disrupting existing paradigms through innovation…”
EOS, currently ranked #5 by market cap, is up 1.84% over the past 24 hours. EOS has a market cap of $9.43B with a 24 hour volume of $744.77M.
Chart by CryptoCompare
EOS Block Producers Freeze 7 Accounts, Face Community Criticism
In an effort to protect a number of token holders robbed of their private keys, EOS’ 21 block producers violated the EOS constitution and froze seven user accounts on June 18, 2018.
The move by block producers was made through the EOS911 Initiative — a new security protocol designed to recover stolen funds and return them to the victims of phishing attacks.
EOS’ block producers faced community backlash following the event, as their actions directly breached Article III of the EOS constitution, which states:
“The Members grant the right of contract and of private property to each other, therefore no property shall change hands except with the consent of the owner, by a valid Arbitrator’s order, or via community referendum.”
EOS New York, a block producer, and EOS community leader, explained their reasoning behind the account freezes in a blog post released June 18:
“EOS New York chose to enact this freeze because we believed that we were following the spirit of the governance system we as a community seek to create, despite it being formally absent. EOS is a platform meant to enable solutions which protect life, liberty, and property and that’s what we believed we were doing through this emergency action.”
The community’s response to the block producer executive decision was mixed, with some supporting their intent to safeguard user accounts and others denouncing the block producers for imposing on the EOS blockchain’s immutability.
Cornell University Professor Predicts Massive Exchange Hack Due to EOS Vulnerability
A Cornell University computer science professor predicted that the way in which EOS handles security flaws will result in a large-scale exchange hack within the next year.
Associate Professor Emin Gün Sirer, notable for launching one of the first Proof of Work-based cryptocurrencies in 2002, made clear that the EOS network vulnerability will enable hackers to capture the hot wallet of an exchange, thereby accessing the EOS within and trade it for other tokens via downstream exchanges.
Sirer attributes the security flaw to EOS’ governance model, stating:
“Exchanges have not yet figured out that EOS’s governance model does not mix well with other currencies. EOS folks will blame others, and they won’t be entirely wrong.”
Sirer’s statements appear to be, in part, driven by a bug present within the EOS code that caused the EOS blockchain to suffer from a temporary halt directly after launch.
TRON, currently ranked #10 by market cap, is up 3.3% over the past 24 hours. TRX has a market cap of $3.2B with a 24 hour volume of $281M.
Chart by CryptoCompare
TRON Token Migration Set to Launch
Following their notable mainnet launch, the TRON token swap will initiate on June 21, 2018. The majority of exchanges that offer ERC20 TRX trading are prepared for the ERC20 TRX to mainnet token migration.
Providing details on the token swap, TRON’s website reads:
“TRON main net will officially become independent on June 25, 2018, Singapore time. In light of main net updates and TRX migration, ERC20 services for TRON Official Website will be discontinued… ERC20 withdrawal services for TRON Official Website will end on June 22, 2018, 12:00 Singapore time.”
Several exchanges are supporting the token swap, including Binance, Bithumb, Bittrex, and Coinrail amongst others listed here.
Users are advised to transfer their ERC20 TRX into a participating exchange by June 21 for the exchanges to process the token swap.
However, users will be able to submit support inquiries regarding late withdrawal issues until December 31, 2018 by contacting [email protected]
The global cryptocurrency market cap stands at $288.79B with a 24 hour volume of $12.22B. The Coinbase Index is currently sitting at 3200.64. Bitcoin dominance is currently at 40%.
Despite exciting announcements and progress in blockchain integration across industries, the cryptocurrency sector continues to endure a bear market. Traders are reminded to remain cautious during market drops and invest only what they can afford to lose.
Cover Photo by 云 陌 on Unsplash