About two main Bitcoin dealers came under attack this week according to reports this week. This attacks simply prevented service operations, although they did not in any way tamper with the funds of the client. It would be recalled that Bitcoin value tripled for the year over the weekend when it crossed 3,000 dollars.
This well-planned and coordinated attacks brought to the fore the many loopholes of the growing digital currency market. Other concerns such as the increase in interests from investors have all but overwhelmed the main bitcoin sites with unbelievable money being raised also being raised for new crypto-currencies are raising the level of fear, all this and more make the unregulated digital currency market may not be able to manage the euphoria.
In a statement by the co-founder of Citizen Hex, Benjamin Roberts, people with their assets on central digital currency platforms ought to be very careful. He said the antecedents of these platforms are nothing to write home about, he further went on to say that as their portfolio grows, so does the risks of being hacked.
Information from the biggest U.S. Dollar based bitcoin exchange platform, Bitfinex said through its website early Wednesday that its platform had come under a denial of service attack that seeks to invalidate the system that boasts of streams of data.
This attack is in the wake of a similar one that was reported early Tuesday. Although that particular challenge has since been remediated, therefore in spite of these attacks, most of the patrons would certainly be able to use the platform normally.
This news comes preceded social network postings by smaller exchange BTCe reporting similar invasions on their platform, although they immediately deleted the post also trades appear normal on its website. There has, however, been no response from either Bitfnex or BTCe.
According to Burniske Chris, who is a blockchain product lead at ARK investments, these attacks don’t really come as a surprise due to the bull market in digital currency assets. He went on further to say that a denial of service issue is very much different from an outright hack and so far a Hack has not occurred.
Having said that, cryptocurrency experts have come out to say that these attacks could certainly allow invaders to affect the Bitcoin trade, this is because the cost of bitcoin is determined by different exchanges world over, shutting down an exchange for a little while might permit a dealer to take advantage of the difference in price.
However there was a slump in the price of bitcoins on Monday by about 400 dollars, this came after crossing 3,000 dollars in value, thus tripling in value in the year 2017. The fall, saw Bitcoin being traded for about 2,600 dollars on Wednesday afternoon witnessing a 6% fall.
Another cryptocurrency named Etherun has gained many thousand percents during that time. A new crave for evolving crypto-currencies flooded many companies this week with millions of American Dollars being realised. Companies such as Bancor realised 153 million dollars on Wednesday as well as other like IOTA making up to 1.5 billion dollars in cash raises on Tuesday. What this means is that the digital currency companies seem to be expanding in spite of these threats.