Have exchange hacks been normalized? $60m Zaif hack has little effect on prices

20 Sep, 2018
by David Robb
News
Have exchange hacks been normalized? $60m Zaif hack has little effect on prices

After another cryptocurrency exchange was hacked yesterday, crypto prices went down temporarily, but the markets seem to have reacted much less than they did after previous hacks. Could this be due to a normalization of exchange hacks as something to be expected, or could it be that it just wasn't a significant theft, or is something else going on?

Yesterday saw around $60 million worth of Bitcoin stolen by hackers from the licensed Japanese cryptocurrency exchange Zaif. This pales in comparison to the major Mt. Gox hack of 2014, which sent shockwaves through the crypto markets, although it is bigger than the recent Bitthumb hack back in June.

Read more: Hack in Japan: close to 6000 BTC stolen from exchangeMt. Gox finally receives go-ahead to compensate victims of 2014 hack

Despite being larger than this previous Bitthumb hack, which had a notable effect on the markets, this most recent hack seems to have had relatively little effect on the price of cryptos. Bitcoin dipped rapidly, before recovering just as fast, eventually finishing up slightly above where it had started the 24-hour period.

Does this mean that crypto investors are simply desensitized to exchanges being hacked now? Are they so normalized that the general level of trust in the markets is no longer affected by them? 

It's possible that this is true, particularly considering how many hacks there have been this year so far. A recent article in Japan's Asahi Shimbun newspaper points out that Japanese exchanges alone have lost a total of $540 million in the first half of 2018, with the largest being an attack on CoinCheck Inc. in January.

While these attacks may certainly have scared away many novice investors or crypto-sceptics, the rest of the market seems to be relatively confident that their crypto funds will be secure.

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