Crypto exchange Cryptopia hacked, potentially $3.6 million ETH and CENNZ lost – latest

New Zealand-based cryptocurrency exchange Cryptopia has announced it has “suffered a security breach which resulted in significant losses.” The exchange is currently offline as they work with police to investigate the hack.

Cryptopia is a leading digital asset exchange in New Zealand with over two million users.

The first tweet that Cryptopia sent out regarding this outage came at 06:55 UTC on January 14th, although at that time Cryptopia did not explain the reason for the “unscheduled maintenance”:

However, at 08:00 UTC on January 15th, Cryptopia did finally announce via Twitter that it had been hacked the day before, that it had alerted New Zealand Police, and that it had gone into maintenance mode (with all trading suspended):


Whale Alert, which tracks large crypto transactions live, on Saturday indicated that 19,391 in ETH worth $2.4 million and around 48 million centrality (CENNZ) tokens worth about $1.2 million were transferred from Cryptopia to unknown wallets on the 13th January:

It remains unclear whether these funds were moved by the hacker or by the exchange.


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Author: Team Crypto Review
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Bitcoin Price Crashes as Whales Are on the Move

The entire crypto market saw a sharp sell-off early Thursday morning, with the top three coins bitcoin, ethereum, and ripple all recording losses of 4%, 9%, and 10%, respectively, over the last 24 hours (UTC 06:00 AM).

The drop followed after a mysterious bitcoin whale had made a huge transaction, moving 22,100 bitcoins out of a wallet. At current market prices, the bitcoins are worth an astonishing USD 137.6 million.

It is, however, unclear what the large transaction means for the market, as both the sending and receiving addresses are unknown. Still, the crypto community loves to speculate, with some Twitter users suggesting that it could be the result of a large over-the-counter (OTC) buy order. OTC trading refers to trading outside of exchanges – often favoured by large investors as they seek to avoid affecting market prices with their orders.

Others, yet, say that the transaction was merely a move from a single key wallet, to a multisignature wallet – a type of wallet that requires several private keys in order to make transactions.

Although the so-called bitcoin whales are often blamed whenever are large downward price movements in the bitcoin market, new data compiled by blockchain analysis company Chainalysis suggests that this group of very large holders may in fact be a stabilizing force for the market.

By studying available data on the 32 largest bitcoin wallets, Chainalysis found that whales are indeed a rather diverse group, and that only about a third of them could be considered “active traders.” Two thirds of whales are, in other words, long-term holders of bitcoin, not doing anything with their holdings even when the rest of the market is selling off heavily.

Perhaps even more interesting is that the whales that are considered active traders were largely trading “against the herd,” thus smoothing out market movements both to the upside and downside.

According to the firm, this was particularly true during the major price declines of December 2017 and throughout 2018, when the largest traders were in fact net buyers of bitcoin, providing crucial support to a market that was otherwise dominated by smaller retail traders and hobby investors.


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Author: Fredrik Vold
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‘Whale’ Moves 48,000 Bitcoin for 4 Cents in Fees As Scaling Solutions Develop

The development of scaling solutions, along with a decrease in Bitcoin transaction throughput, has allowed for Bitcoin fees to drop under a dollar. A Bitcoin ‘whale’ utilized these dropping fees, moving 48,000 Bitcoin for just four cents.



$290 Million Transaction for Four Cents, Where Else Can You Do That?

Bitcoin fees were the talk of the town in December 2017, as Bitcoin fees briefly reached $50 when the network confirmed nearly 400,000 transactions each day. Since then confirmed transactions have halved, dropping to an average of 200,000 transactions on a daily basis.

This decrease in transactions has allowed for Bitcoin’s mempool to clear, as the network became clogged with transactions in the latter half of 2017. According to info aggregated by popular cryptocurrency infrastructure firm, Blockchain, the number of transactions waiting for confirmation has dropped by over 95%, from an average of 100,000 to 5,000.

It was widely speculated that Bitcoin’s critics, hell-bent on ruining Bitcoin’s credibility and reliability, purposely inflated Bitcoin transaction fees. These critics reportedly filled up Bitcoin blocks with ‘spam’ transactions, using the Bitcoin network for no real purpose.

However, others observed that the exponential increase in transaction fees was also due to the growth in the interest of Bitcoin, with retail consumers looking to transact value using the ‘flavor of the month.’

 

 

A whale, unidentified at the time of writing, has proved this point, paying four cents of fees for the transaction of over $290 million worth of Bitcoin. The transaction occurred late last night, with the Bitcoin user moving 48,500 Bitcoin for mere pennies, a far cry from the fees of late 2017. The ‘Whale’ paid 0.00000675 Bitcoin in fees, offering a rate of 3 satoshis per byte of transactional data.

It came as a surprise to some that a user with such a large amount of cryptocurrency holdings would pay fees well-below the rate suggested by Blockchain, at around 5 satoshis per byte.

A Twitter user, with the handle, @martybent, said:

“Can you imagine trying to move $300M for $0.04 using the traditional banking system? No, no you can’t.”

However, users have sought for more, looking for ways to decrease transaction fees to the bare minimum, while increasing Bitcoin transaction throughput limits. This search has signaled the development of Bitcoin scaling solutions, pertinent to the future success of this world-changing network.

Scaling Solutions: Segwit and the Lightning Network

For the uninitiated, Segwit is an improvement on the Bitcoin network that changes the transaction format of BTC transactions. Segwit allows for transaction sizes to be reduced drastically, helping to reduce fees, along with allowing for an increased amount of transactions to be stored within one block.

This protocol, activated in August 2017, has already caught on with the network, as over 36% of all transactions now run on Segwit addresses.

The implementation of the Segwit protocol was vital in making sure that the Lightning Network, another popular scaling solution, could function. The Lightning Network is an off-chain scaling solution that promotes the use of Bitcoin for micro-payments. This specific scaling solution utilizes balance sheets, payment channels, and multi-sig addresses to ensure that all parties get the money they deserve. By using this system, thousands of transactions could be made per second for minimal fees, the holy grail for any cryptocurrency network.

Blockstream, leading cryptocurrency infrastructure and development company, recently announced that Lightning Network adoption has grown at a staggering rate, saying:

“Around the announcement of the Blockstream Store, the Lightning Network had a total of 46 open channels and 0.682 BTC in capacity. Today, there are roughly 7,800 open channels with 26 BTC of capacity. That is a 16,856% increase in channels and a 4,084% increase in channel capacity in 6 months!”

Hopefully, the adoption of scaling solutions can continue, as Bitcoin begins to seep into traditional financial systems, finding a place in daily commerce.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: NICKCHONG
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Bitcoin whales dump $100 million of digital currency in 24 hours

Did a single seller move the price of bitcoin $200 in 20 minutes?

The price of bitcoin took a dive Tuesday, falling by more than $200 in under 20 minutes, a move that could have been the result of a single seller unloading a sizeable amount of the digital currency.

The balance of wallet 3D2oetdNuZUqQHPJmcMDDHYoqkyNVsFk9r — an anonymous digital account which is valued at $1.49 billion — fell by 6,500 bitcoin Tuesday, with the average sale price sale being $8,146.70, a total value of just over $50 million, according to bitinfocharts.

The sale comes a day after the third-largest wallet, which famously purchased over $400 million in bitcoin in February, let go of 6,600 bitcoin at an average price of $8,026. All told, the two whales dumped over $100 million of bitcoin within 24 hours.

As expected, online forums lit up, speculating on what or who was behind the sharp move lower.

“Holy hell, these dumps out of nowhere. I was looking at some alts, then I check back to bitcoin and BAM it dropped $200 instantly,” one Reddit user wrote.

Initial reaction was to point the finger at New York Attorney General Eric Schneiderman, who announced he was launching an inquiry into 13 cryptocurrency exchanges, seeking information including exchange fees, volume data and procedures around margin trading. However, that news broke nearly four hours before bitcoin’s move lower.

Previous selloffs in bitcoin have been blamed on sizeable single-user selling, with the most famous case being the Mt. Gox sale on March 7, when its trustees announced they had liquidated over $400 million in bitcoin and bitcoin cash.

Significant selling seems to be the flavor of the month. On April 12, the second-biggest bitcoin wallet sold $38 million of the No. 1 digital currency.

Early Wednesday, a single bitcoin was worth $8,111.56, up 2.5% after battling to hold above the $8,000 mark, having got a boost late Tuesday on upbeat remarks from International Monetary Fund Managing Director Christine Lagarde.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Aaron Hankin
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