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Decentralized cryptocurrency exchange, Bancor hacked. No big deal?

12 July 2018 - 1823, Richard Robinson
Cryptocucrrency Exchange

CryptoGuide


Cryptocurrency market plunged after news of Decentralized exchange, Bancor was hacked. Fortunately, the company reportedly was able to mitigate the damage by freezing the transfer of Bancor tokens, hence was able to reduce the damage to around $13.5 million.

 

At times, news of cryptocurrency exchange hacked will affect market price and this time is no different. However, the price plunge that happened this round is an over-reaction, considering Bancor is a puny size exchange. At $3 million USD 24 hour trade volume, the volume is about 0.026% of the cryptocurrency total market volume of around $11.4 billion as of 12 Jul 2018, and is around 0.33% of the trade volume of second largest cryptocurrency exchange Binance by volume of $920 million.


There are hundreds of cryptocurrency exchanges around the world, probably more, hence it is no surprise that there will be a small number of exchanges around which are not well led and managed, nor having acceptable decent security standards.


Non-cryptocurrency related companies and software around the world are hacked everyday, so any news of an exchange that does not make up even 0.05% of the total market trade volume isn’t going to be significant.


Now, if next time a reputated exchange is hacked and it has trade volume that is near the volume of the top 3 exchanges (Eg. OKEx, Binance, Huobi) in the world, then investors will have more of a reason to be concerned.


Reported by Richard Robinson


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