The domino effect of the exchange
The cryptocurrency entered the bear market again, and exchange security problems frequently occurred. The statement that the exchange is at the top of the cryptocurrency food chain may be a bit exaggerated, but the domino effect of the exchange will bring a big blow to the cryptocurrency.
In recent years, the theft of cryptocurrency exchanges has continued. For example, in 2014, Bitcoin exchange operator Mt.Gox announced that 850,000 Bitcoin on its trading platform was stolen and Mt. Gox went bankrupt. Bitfinex, Coincheck, Blockchain.info and others have the same ending.
When time came to 2018, the fate of exchanges and cryptocurrency investors did not seem to change. On June 10th, when hackers again invaded the Korean exchange Coinrail, a large number of cryptocurrencies were lost. The bitcoin prices went down sharply, and the remaining altcoins were also affected to varying degrees. Optimists believe that after this round of downturn performance, cryptocurrency will usher in the culmination of capital entry.
Analysis of the reasons for the current round of decline
There are three reasons
1. As the study of blockchain technology continues to deepen, more and more countries are realizing that cryptocurrencies will cause serious money laundering problems and they will begin to formulate and issue relevant regulations.
2. The recent public chain 51% attack problem has been highlighted. People began to find that the number of nodes does not represent the security and quality of the system. The recent thefts and manipulations of the Exchange also caused panic in the market. Users raised coins to their wallets. This led to a drop in liquidity which in turn caused the price to fall.
3. The real application scenarios began to emerge, making the entire industry begin to return value, the original cryptocurrency bubble began to burst. For example, axiom (axiom), Magnetcoin (MAGN), EggCoin (EGG) and other garbage currencies will not survive.
Summary
The relationship between cryptocurrencies and exchanges is inextricably linked. As a centralized organization, the Exchange has solved the problem of asset transaction trust and has made significant contributions to the circulation of cryptocurrencies. Too many centralized exchanges are tested by human nature, not only because of the personal control of the exchanges, but also because the regulation of exchanges in many countries is not the same. Despite this, the pace of advancement of cryptocurrency will not stop.