Public opinion is always stressing out how un-hackable Bitcoin is, but it’s really the truth? What we can say, is that there are cracks in its exchanges and people often lose money with Bitcoin too.
The latest fraud in cryptos world probably aims to remind that there are no absolute protection and promises of security and liquidity may be just that-promises. Of course, this is not so bad as the Mt. Gox Bitcoin exchange collapse, but it may be better to take it as a warning that transparency and trust are a rare thing in this world.
Another example of fraud : IQ Option ICO. As describe a french magazine, OptionMag about IQ Option ICO, it’s nothing more than another scam for hackers.
Talking by historic standards, the attack is of no big size and the scope isn’t so alarming, and that’s because Bitcoin’s price bounced back to $8.200 after sinking to about $7.800. Even though more than $30 million was stolen from Tether, a coin of the same level of Bitcoin that issues U.S. dollar tokens for crypto exchanges and easier trading, and it is said that sent something by an un unauthorized address. This is always more manageable than Mt. Gox collapse, that was hacked for $ 450 million and the last year fraud of $65 million at another crypto, Bitfinex.
The Tether raid shouldn’t be forgotten. It shows how quickly a cryptocurrency’s liquidity and top security can shatter. Tether is also one of the Top-20 digital currencies, and it built its name using cryptographic security and assuring real world monetary value. Every Tether is also supposed to be backed by a correspondent hard currency, so that crypto traders can exchange it as a U.S. dollar proxy, trusting that it will always be redeemable. But before the hack Tether’s legal made clear that its tokens may be not redeemable, as they are neither money nor stored value. Banks of course didn’t help at all, but it seems that the hack is drying up together with some crypto liquidity. Some are also saying that Tether’s transactions are being suspended. But we still don’t know how Tether is linked to Bitfinex, that also was hacked last year. Tethers can be used on Bitfinex to withdraw and deposit for crypto users, taking the place of the traditional banking system.
But the two companies surely have some other connections. They allied together against U.S. Bank wells Fargo & Co. for the frozen international transfers we mentioned before, and they can possibly be tied by some form of ownership. So, Tether’s problems aren’t just affecting this company, but are resonating towards any company who has some ties with it for general liquidity and crypto exchanges. Everyone know the risks of trading with cryptocurrencies by now, but everyone must be aware of the rewards too.
Wall Street is still watching from behind the developments of Bitcoin’s speculative price bubble, but they already know that the next attack may not be so easy to treat. It may be even worse with the arrival of Bitcoin futures trading and so they better take this like a warning.