Binance Hack Fear Crushes Bitcoin (BTC) and Crypto Prices

knifedag

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03-07-2018 1:59PM

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Rumors are swirling about a hack in Binance. A reddit user posted, "WTF is happening! Binance just sold all my alts at market rate and I have got just the Bitcoin now. Is it because of account getting hacked or binance 'bot issue'? Have raised a ticket 715903 for this."



This has set off a chain reaction, with more users claiming to have experienced the same "hack" and message boards lighting up with discussion. Bitcoin didn't take long to feel the effect, falling 1,000 dollars in value almost instantly. FUD is a powerful thing. Binance has not confirmed the rumors, but has suspended withdrawals for the time being, adding to the speculation.

Is Binance to Blame?

Binance claims they are investigating and has assured clients the issue will be resolved. I have faith that Binance will indeed solve the issue, if it truly exists. This does not do much for the various cryptocurrencies suffering a large price drop and investors may find themselves under increased selling pressure in the near term.

Some are speculating that Binance accounts utilizing trading bots may be the ones that are affected. This is a sound theory as it would be much easier for someone to hack and command a bot than it would be to access and move a users funds around on the exchange, given the multiple layers of security. Coincidentally, or perhaps not, VIA coin saw a huge spike, over 100%, in its price around the time of the "hack". It isn't that farfetched to imagine a malicious user, or group of users, implementing a compromised bot program to quickly drive up the price of a certain coin and then selling their own for the profits. This is the wild west of crypto and anything can happen.



In any case, all of this is speculation at the time of this writing. Nothing has been confirmed nor denied so we will all have to wait on further updates. What is not speculative, is the wound to Bitcoin's latest bull run. The price took a plunge and that may prompt further sell off, whether the rumors turn out to be true or not.

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