The latest malicious hack on ByBit is officially the largest crypto heist in history.
Such events have traditionally had a negative impact on the market, usually in the form of FUD and sell pressure. So, what’s different this time?
The ByBit hack has so far not demonstrated any significant impact on the market.
Most of the top coins were are still locked in sideways price action which was the case even before the malicious attack.
The hack triggered bearish expectations in the market with many investors anticipating significant downside.
This was evident by the ratio of liquidations that occurred in the last 24 hours.
For example, Bitcoin had $5.41 million worth of short liquidations compared to $703,000 worth of long liquidations.
How the Market Weathered ByBit Hack
Reports have emerged revealing that many institutions in the crypto industry have offered liquidity to support ByBit customer withdrawals.
Even key figures in the crypto space have also been chipping in to support the exchange.
This is a stark contrast to how the situation was in the past. Exchanges that were hacked and funds stolen would have to figure things out on their own.
This change of guard highlight a more collaborative spirit among different industry players.
This assistance may have helped ease loss concerns among its users and the solidarity demonstrated provided a confidence boost among investors.
ByBit CEO also disclosed that his exchange has more than $1.5 billion worth of assets.
He also revealed that the exchange has almost 3 billion USDT safely stored in a cold wallet.
He also noted that the only way that the exchange would have been forced into insolvency is if over $10 billion was stolen.
The ByBit CEO’s statement provided further assurance of the exchange’s risk management and solvency.
Nevertheless, the hack has triggered calls for exchanges to deploy better security measures.
It also helped that the exchange was not overleveraged or misusing customer funds as was the case in the FTX collapse.
As a result, the collateral damage caused by the recent ByBit exchange is minimal.
Same Risks But a Mature Market
Crypto exchange hacks and subsequent losses have become quite common over the years.
However, what’s new is the collaborative approach which underscores the level of maturity that the market has achieved so far.
The absence of a negative knee jerk reaction also highlights the shift away from a speculative approach, in favor of a more serious investment approach.
This is good news for the market and for investors. The hack may not have had a negative impact on prices.
However, the fact that it occurred places more emphasis on safe practices not just for exchanges but also for investors.
Storing crypto off exchanges and onto cold wallets is still one of the safest crypto investment practices.
The post ByBit Hack: Biggest In History, Reveals This About Industry appeared first on The Coin Republic.
The Coin Republic – Read More