How safe is Bitcoin – Cryptocurrency as hackers stole $7 million from Ethereum?

shakirudeen taiwo

July 19, 2017 10:08 AM

It is hoped that this would not be a repeat of Ponzi scheme scenario for many African countries.

Hackers immune myth about blockchain and crypt-currency has been disputed by this event.

The myth of undistortable claim about the block-chain has been proven false, as hackers have hijacked cryptocurrency trading platform, CoinDash on Monday, July 17, 2017.

This attack was launched during the CoinDash’s Initial Coin Offering (ICO). This is noted as the first known breach of a crypto-currency platform in the world.

CoinDash is an Israeli startup, planned to raise capital by selling its own digital tokens in exchange for the cryptocurrency, Ethereum, which is like Bitcoin.

The safety of this fast growing digital currency has been major concerns for financial market analysts since there is no security of investors’ funds by any regulatory framework.

This concern was also raised by Charles Hoskinson, co-founder of Ethereum noting that crypto-coin market is a time-bomb.

“People say ICOs are great for Ethereum because, look at the price, but it’s a ticking time-bomb.”

“There’s an over-tokenization of things as companies are issuing tokens when the same tasks can be achieved with existing blockchains. People are blinded by fast and easy money,” Charles said.

In most African countries, many local investors have been attracted to invest massively in many crypto-currencies across the world. Aside from the high returns on investment due to increased trading price of these digital currencies, it has also been stated to be hackers’ immune. One farce this incidence has defeated.

Globally, many tech firms have raised about $1.3 billion from digital coin sales this year.

Just like other digital currency, digital currency linked to the Ethereum blockchain, surged from around $8 after its ICO at the start of the year to just under $400 last month.

Though the incidence has made its value to drop by 50% since Monday.

shakirudeen taiwo