As covered in our last article, cryptocurrency has been experiencing rough time in a past couple of days. Just as the crypto market started to recover, another series of ‘fatal’ decision were announced. Firstly, on January 1st, 2018, Government of India announced that India will not ban cryptocurrency but rather limit their usage of a form of payment.
As a result, many trades, horrified of India’s idea, started ‘dumping’ Bitcoin and other cryptocurrencies resulting in a loss of cryptocurrencies’ price. Some of the biggest losers of this decision were alt coins like Ripple’s XRP coin, Cardano (ADA) or Stellar (XLM) which lost 15% to 20% in their value.
Then just as we thought a bearish trend is over, a Facebook ban of cryptocurrency-related ads was introduced. But, a question raises is this decision indeed true or whether it is just a rumour. Moreover, in the age of digital propaganda, many take opportunity to exploit other people. As an example, a recent ICO called Produem managed to raise a quiet small amount of money before vanishing approximately $11. But a more terrifying fact is that a target donation amount was around $6.5 million and it was a subject of identity theft. After raising $11, webpage of the ICO, prodeum.io, was shut down with an unpleasant message.
Moreover, in the recent months, a Facebook hot topic was ‘fake news’ and the ‘Russian propaganda’. As a result, it is highly likely that a fear caused by the aformentioned terms, forced Facebook to make a decision like this one. Also, the company has been trying to suppress ‘fake news’ phenomena for a quiet long. Whether, this rumour is true and if is, it still remains unknown when Facebook will lift this ban. In an age where 1.7 billion people use Facebook daily, a ban (or rumour) greatly affects the market.
One more factor that drove the market down was a theft of just $534 million of popular cryptocurrency NEM. A popular Japanese exchange, Coincheck, due to security flaws, was hacked on January 26, 2018 where anonymous hackers managed to steal roughly 523 million NEM coins.
As a result, NEM coin losing in value, in matter of hours, around 25%! Though, the coin managed to recover, many people still remained sceptic because of this hack. So far, this theft was considered to be the biggest theft of any cryptocurrency so far. For comparison, in November 2017, a security breach allowed hackers to steal over $31 million USD in USDT (Tether). By looking the trend, intensity of hackers proves to be stronger than ever before. But after every hacker attack, exchanges keep getting more secure. For instance, Coincheck announced that it will refund around 90% of the stolen tokens while making their platform less vulnerable to third-party interference.
Indeed, the cryptocurrency market managed to recover but just partially. For example, Ripple’s coin XRP plunged from $1.30 a coin a this-year low of $0.75 a coin. At the time of the writing, XRP is slightly below $0.90 a coin. It really remains unknown how long it will take to fully recover or even reach an all time high. But for now, the recovery rate is going at a steady pace. Is this recovery fuelled by people’s urge to buy more coins at a ‘discount’ price or is driven by other factors is yet to be seen. Some say that March 2018 will be the month when cryptocurrency will experience a strong comeback but others are not so optimistic. In the end, it is up to you, investors, developers and everyone that believe in the idea of decentralized world, to shape the future of cryptomarket.