The price of Bitcoin had a sharp fall from $6,761 to $6,611 immediately after the announcement and Ethereum fell from $537 to $521 at the same time. It is now $6,643 per coin. Bithumb said its cryptocurrency holdings were shifted to an offline "cold wallet", and any losses for traders would be covered.
"[Notice for the restart of service] We are transferring all of the assets to the cold wallet to build up the security system and upgrade DB". The Bithumb incident doesn't seem to have affected the price too much, but as Charlie has mentioned, 5 percent corrections are very common in this space and should no longer surprise us. Shortly thereafter, Bithumb revealed that it would be suspending all of its withdrawal and deposit services. "Further announcement will be made in due course. Buying, selling and storing of bitcoin is beyond what we can reasonably expect the public to understand but as with most technologies, it is expected cryptocurrency will become more user friendly over time". "Our priority is to secure our customers asserts at all time, and we will continue our best to better serve out our customers". After a checkup of the security systems of 21 cryptocurrency exchanges from January to March, the government concluded that most companies including Bithumb had many weaknesses and ordered them to implement supplementary measures.
Earlier this year, South Korea imposed a ban on anonymous bank account used for trading digital currency in a bid to prevent the use of cryptocurrency for money laundering and other crimes.
Bithumb lost millions-worth of cryptocurrency in a cyberattack. "This latest in a growing line of high-profile, significant thefts of digital currency has already seen bitcoin taking a significant downturn - approaching two percent". As an investment class, cryptocurrencies are speculative investments and investing in cryptocurrencies involves significant risks - they are highly volatile, vulnerable to hacking and capital loss and sensitive to secondary activity. In a tweet, the company urged its customers to hold off on making deposits into their Bithumb wallets. How disappointing has 2018 been, following the highs of previous year?
Before the Bithumb hack, the market appeared to be recovering as it gained more than $12 billion in total market capitalization.