The recent hack of leading crypto trade Bithumb “doesn’t really change the fundamentals of Bitcoin” Litecoin (LTC) founder Charlie Lee stated in an interview with CNBC June 20.
As indicated by Lee, the price drop is a normal reaction of the market to the news about the hack, and it happens constantly because of the fact that individuals get terrified. According to Lee, the hack of a crypto trade does not influence Bitcoin’s (BTC) essentials just similarly as a bank theft ought not to influence the cost of gold:
“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.”
Thinking about the recent hack, Lee guaranteed that crypto trades at the moment are investigating and learning better methods to secure clients’ assets. According to Lee, the procedure is enhancing, yet at the same time “there is a lot to improve.”
Lee also focused on a “paradigm shift for personal finances with Bitcoin,” implying that individuals need to become used to ensuring their coins, “much better than traditional finances.”
As indicated by Lee, regardless of the drop by 60-70 percent over the previous year, Bitcoin is going extremely well, asserting that its system has turned out to be significantly more grounded in the course of recent years. Lee says that the present price of Bitcoin seems to be “disjointed from the actual development of Bitcoin,” and recommends that the cost will bounce back and “come back up fairly soon.”
In the meeting, Lee also proposed that the market is presently in a bear position, yet it is difficult to state to what extent will last — three to four years, or one day:
“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.”
On the 19th June, bithumb was hacked, leading to the loss of $30 million worth of cryptocurrency. The trade needed to briefly suspend all deposits and payments. As indicated by Coinmarketcap, Bithumb’s 24-hour trading volume has dropped to around $236 million from $374 million revealed June 19, moving the trade from the 6th to the seventh biggest crypto exchange by trade volume.