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South Korea Crypto Heist Impacts US Crypto Businesses

South Korea Crypto Heist Impacts US Crypto Businesses

Numerous US companies gained huge profits when the value of digital currencies skyrocketed in December 2017. But, the underperformance in Q1 of 2018 has minimized profits to a much humbler position.

It was noted that last weekend around $42 billion of the market value of digital currencies was erased. Many experts consider the hack in South Korea and others blame the current speculation of new regulatory policies over the Chinese crypto trading platforms.

Ripple, Bitcoin, and Ethereum saw a decline in their value meanwhile stocks in relation to virtual currencies in Asia slumped including Remixpoint Co. in Japan, GMO Internet Inc. Japan, and Vidente Co. South Korea. Investors will carefully watch the impact of the new digital currency trend over US-listed stocks on Monday.

On the other hand, companies like Long Blockchain Corp. and Riot Blockchain Inc. were the forerunners in re-inventing themselves as crypto firms at the peak of bitcoin’s craze. In December 2017, the ex-iced- tea producer touched the $6.91 mark after it turned into a virtual coin company but suffered a steep decline and lost 87 percent of its value since 2018. Known earlier as Bioptix biotech, the diagnostic machinery maker, enjoyed a rise in its share to $38.60 in the peak month but currently, they are trading at a 79 percent decline in prices.

It is speculated that Overstock.com, dealing in cyber coins through its Medici Ventures unit and DPW Holdings, whose subsidiary Coolisys Technologies is developing power systems for virtual crypto mining will also experience change.

Co-incidentally the downward price pattern occurs with the first crypto mining listing in London. On Monday, Argo Blockchain Plc claimed to raise around 20 million pounds ($26.7 million) through its enrolment on the London Stock Exchange.

Executive chairman and co-founder, Argo Blockchain Plc, said, “We are creating an on-ramp for crypto mining. Mining is controlled by the elite. We don’t think that is reasonable and we think it is an impediment to scaling crypto. Our business is 100% about democratizing the process. You can live anywhere in the world and mine crypto just as cheap as the elite are.”

The newly formed company is trying to capitalize on the success of Genesis Mining from Iceland which currently serves 2 million users and charges from a minimum of US$179 to a maximum of US$4,000 favor.  As of now, a new user might wait for six months before availing the benefits which hint at the rise in demand for mining services. Furthermore, it improves Argo’s chances of 30,000 subscribers in its first year and 140,000 in the next one.

The crypto hack

On June 10, Coinrail, a South Korean cryptocurrency exchange declared on its website that cybercriminals stole more than $40 million worth of virtual tokens. The Pundi X token was the most targeted as $20 million of its value got disappeared while Aston X suffered 414 million, Dent $6 million and TRON lost more than $ 1 million of its worth. The repercussions of the hack will be felt for a very long time, especially as cryptos enter a troubled phase.

About the author

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Tag Christof

Photographer. I spend my days on the road thinking about design, architecture, culture, America and the dark side of innovation.

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