Binance Hack Fear Crushes Bitcoin (BTC) and Crypto Prices

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Rumors are swirling about a hack in Binance. A reddit user posted, "WTF is happening! Binance just sold all my alts at market rate and I have got just the Bitcoin now. Is it because of account getting hacked or binance 'bot issue'? Have raised a ticket 715903 for this."

This has set off a chain reaction, with more users claiming to have experienced the same "hack" and message boards lighting up with discussion. Bitcoin didn't take long to feel the effect, falling 1,000 dollars in value almost instantly. FUD is a powerful thing. Binance has not confirmed the rumors, but has suspended withdrawals for the time being, adding to the speculation.

Is Binance to Blame?

Binance claims they are investigating and has assured clients the issue will be resolved. I have faith that Binance will indeed solve the issue, if it truly exists. This does not do much for the various cryptocurrencies suffering a large price drop and investors may find themselves under increased selling pressure in the near term.

Some are speculating that Binance accounts utilizing trading bots may be the ones that are affected. This is a sound theory as it would be much easier for someone to hack and command a bot than it would be to access and move a users funds around on the exchange, given the multiple layers of security. Coincidentally, or perhaps not, VIA coin saw a huge spike, over 100%, in its price around the time of the "hack". It isn't that farfetched to imagine a malicious user, or group of users, implementing a compromised bot program to quickly drive up the price of a certain coin and then selling their own for the profits. This is the wild west of crypto and anything can happen.

In any case, all of this is speculation at the time of this writing. Nothing has been confirmed nor denied so we will all have to wait on further updates. What is not speculative, is the wound to Bitcoin's latest bull run. The price took a plunge and that may prompt further sell off, whether the rumors turn out to be true or not.

Disclosure:

I have received no additional compensation other than the Ethereum that Hade Technologies pays to produce Exclusive content

Comments (33)

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testing comment functionality

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    what is latest news

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      • knifedag
      • ,  Contributor
      • 08 March 2018, 12:03 pm

      Hi Bob, you can read an update on the situation as well as a statement from Binance here: https://hadeplatform.com/articles/2018/03/08/Binance-Hack-Update---/545

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        • Scott
        • ,  Contributor
        • 08 March 2018, 08:03 am

        Looks like $BTC.X is crashing again.

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          What is the latest news about the Hack?

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            When will the whales actually decentralize this so its affordable and usable as currency for most people?

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              I think the drop in $BTC.X was mostly related to what the SEC said about Exchanges

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                • John R
                • ,  Contributor
                • 08 March 2018, 05:03 am

                BTC.X back above $10,000

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                  Cryptocurrencies do not require an exchange to function, as they can be directly transferred between participants.

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                    Take that for what it’s worth lol

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                      • John R
                      • ,  Contributor
                      • 07 March 2018, 07:03 pm

                      Exactly, lol

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                        Take that for what it’s worth lol

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                          Binance tweeted that all funds are safe...

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                            Waiting for the Asia market to see how they react before buying.

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                              • John R
                              • ,  Contributor
                              • 07 March 2018, 05:03 pm

                              I think some regulation is a good thing, like this article points out...This is the Wild West of Crypto...

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                                Is the SEC crack down a good thing longterm? Means that crypto is becoming mainstream.

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                                  Too many bots in trading markets, whether it be securities or crypto, and I still believe there is a big difference from the two

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                                    • Tito
                                    • ,  Contributor
                                    • 07 March 2018, 04:03 pm

                                    SEC says crypto exchanges must register with agency

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                                      • Tito
                                      • ,  Contributor
                                      • 07 March 2018, 03:03 pm

                                      Could be a good time for traders to make some money on this volatility, but be cautious.

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                                        $BTC.X there are several reasons for the big drop 1) SEC 2) Binance trades 3) Mt Gox Lawyer selling 4) Panic selling by bots.

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                                          A bot simply means an application that performs an automated task.

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                                            • John R
                                            • ,  Contributor
                                            • 07 March 2018, 03:03 pm

                                            If you can make money off of using automated trading bots, more power to you.

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                                              What is a "Bot"?

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                                                • Tito
                                                • ,  Contributor
                                                • 07 March 2018, 03:03 pm

                                                Is it trying to cheat the system by using automated trading bots?

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                                                  • Tito
                                                  • ,  Contributor
                                                  • 07 March 2018, 03:03 pm

                                                  Could be a good time for traders to make some money on this volatility, but be cautious.

                                                     0   Reply (0)   Follow(437)  

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                                                    • John R
                                                    • ,  Contributor
                                                    • 07 March 2018, 03:03 pm

                                                    $BNB.X When is next burn date?

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                                                      • Scott
                                                      • ,  Contributor
                                                      • 07 March 2018, 03:03 pm

                                                      It is amazing how speculation can drive a price swing like this.

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                                                        • Tito
                                                        • ,  Contributor
                                                        • 07 March 2018, 03:03 pm

                                                        Reddit is reporting that API hackers used Binance funds to pump

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                                                          Is Binance going to give people a refund?

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                                                            This is a huge problem with cryptocurrencies, you can lose all your money.

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                                                              • Tito
                                                              • ,  Contributor
                                                              • 07 March 2018, 02:03 pm

                                                              $BTC.X I warned of this recently, there were only a few bears around then & now they’re everywhere.

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                                                                • Tito
                                                                • ,  Contributor
                                                                • 07 March 2018, 02:03 pm

                                                                Very informative article

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                                                                  There certainly have been a lot of rumors circulating the Web for several months. They better get it cleaned up

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