Bitcoin sinks below $7,000 as 10% is shaved off value

Bitcoin is down 10% following the hacking of South Korean exchange Coinrail. The top crypto is trading at $6,750, the lowest price since early March

The rest of the crypto market is falling too, although there is good news from EOS where the mainnet has finally gone live and voting is now in progress for the first block producers.

The extent of the hack at Coinrail is not clear although a statement on its website suggests it has been able to contain the problem to three coins, NPXS, NPER and ATX, in which all transactions had been frozen with all other coins stored in cold storage.

The statement raises a number of questions about what has happened. What is the extent of the funds lost, if any, in the three named coins? Are not all coins kept in cold storage  as a matter of course except for that portion required for exchange liquidity? Also, when will the exchange reopen and what is the current state of client funds and access to them?

Coinrail has markets in 50 coins and is ranked the 98th largest exchange by trading volume.

Elsewhere in crytpoland, EOS voting has led to some controversy. The way voting is taking place to elect the first 21 block producers has been changed so that instead of 21 appointed BPs overseeing the process there is just one, whose identity has not been released.

Many community members worry that the lack of transparency and independent auditability weaken trust in the election.

The voting continues until 15% of the total coin supply has been staked in the election.

Once the election is complete the appointed BPs cede control to the elected BPs and voting continues in a permanent process that is updated every three minutes. This means the make up of the 21 BPs will likely continually change, assuming there is no behind the scenes manipulation by large token holders.

The election is ongoing and there is no indication as yet of whales entering the process to tip the scales in the direction of any particular BP.

About the Author

Gary McFarlane
Gary has been writing about cryptocurrencies since 2013 and currently works as the cryptocurrency analyst at interactive investor, the UK's second-largest online investment platform. Gary contributes for Coin Intelligence News in a personal capacity and none of his commentary should be considered investment advice. Gary is the winner of the ADVFN International Financial Awards 2018 Cryptocurrency Writer of the Year. Contact Gary on twitter at: @gary_mcfarlane

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