Review the History of bitcoin exchanges hacks and price prediction

Hello. 

Today, we will analyze the price patterns of the Bitcoin Exchange and the hacking cases.



" History repeats itself. "

I love this word ... Because I can study history and predict and respond to the present and future.

Although we did not anticipate and respond to the coin rail hacking incident in advance,

Looking back on the hacking incident of the last big exchange, we analyzed the extent of the price crash according to the size

I think we can predict and respond to the price recovery for some time to come.



First, let me introduce you to the hacking case of the Japan Exchange, which was the biggest and most damaging case in Bitcoin history.

1. March 2014 MauntGox Exchange hacking incident

I think it's a hacking case that anyone who is a beginner in Bitcoin trading will know. 

The damage is a staggering four to five trillion won in current value ... Bitcoin is still a huge event in which Bitcoin periodically flirts as a volume to clear the mauntGox.

The price drop was a record, and the recovery period after the fall was extremely long.

Let's look at that chart.

As you can see, after the March 2014 MauntGox hacking and bankruptcy, a staggering 47 % decline in prices lasted for 38 days. 

It took 57 days to recover to the pre-buckled price range, but it continued to fall for about two years afterwards.

2. January 26, 2018 Japan Coins Check Exchange New Economy Movement

The coin check exchange has hacked about 560 billion won (56.6 million dollars) . 

 At least, the exchange office responded swiftly and compensate the damages in full.

We got it done pretty quickly.

Let's look at that chart.





Right after the hacking was discovered, there was a huge drop in prices by about - 11 percent. 

This is small compared to the MT.Gox case, but if the bitcoin falls by - 11 % for a short period of time, it will fall by - 20 % based on the amount of the coin, so it can not be ignored.

Fortunately, the exchange has been quick to respond and take action, so we have recovered to the nearest price, 

but we continue to see a decline in the long run.

3. in February, hacking of Italy Exchange Bitgrail 1850 billion won

At Bitcreil, Italy, the amount of Nano-coins worth 1850 billion won was hacked.

Let's look at that chart.

Since the amount of damage caused by hacking was significant, there was also a - 12 % drop.

However, it recovered to the pre-bucking price range and continued its upward climb.

4. March 8, Binance exchange Hacking incident

It is ambiguous to say that it is hacking of the exchange itself, 

but by taking over the private API keys of a large member and selling assets forcibly, 

it was forced to pump alt coins with a low total value of 800 %.

The financial sector seems to have taken care of the situation in an aggressive manner,

 but it has not stopped the Bitcoin price crash.

Let's look at the chart.

There's been a staggering 21 percent crash since the Binance hacking.

The Binance Stock Exchange, which is the number one trading company in the world, seems to have felt even greater impact on investors around the world, and the drop was just as much.

It took four days to recover, but they failed to recover the price before hacking, and soon after, the campaign continued.



This is the most recent hacking case ever.



5. The coinrail Korea exchange hacking incident on June 10, 2018

Not long ago. About 40 billion won (40 million U.S. dollars) in alt coins were withdrawn from the hacker's wallet for 40 minutes at 1 a.m.

This resulted in a significant price drop and is still ongoing.

Let's look at the chart.

The damage is 40 billion won, which is not so large compared to previous hacking cases, but it is the largest amount of damage caused by the volume of the transactions in Korea 

The decrease in the bit coin is also significant, with a decrease of - 13 %.



In light of all the hacking incidents, the decline is going to last for some time and the key is how long it will recover.



The key to the price recovery is to actively compensate for damages like the CoinCheck Exchange, 

and to quickly block and retrieve hackers like the Binance Exchange.

The average number of days to recover is likely to be between two and five days, but whether you want to put it back on the $ 7,000 line or up to $ 7,000 and continue the downward spiral again.

I think we should watch.



In the next posting, we will write a posting that analyzes the price outlook of Bitcoin in depth from a trading point of view.

Thank you.