We got some major breaking news today. You might be wondering why market cap blown 400 billion right now. We have a lot to talk about, Binance and the apparent hack that is rumored to happened. And we are also gonna discuss the Binance responses as well as how you can get profit from this. Because when crazy news like this breaks there is always a lot of money to be made and you gotta prepare yourself properly to handle stuff like this.
So this is what we got going on....
396 billion dollars in Marketcap with 40.9% Bitcoin. In last few hours every coin has dropped substantially. Every thing is doing poorly. Its obviously not a good news. So what exactly happened.?
Traders on Wednesday took to twitter and Redditbto complain about Binance suddenly liquidating their altcoin holdings at market rate without consent or prior notification . Some have speculated that Binance's trading bot was at the heart of the issue, while others believe hackers may have orchestrated an attack.
The exchange issued a temporary suspension on treading and withdrawals to investigate the matter further. A company spokesperson responded to a Binance Reddit thread informing traders that a formal investigation is underway.
According to several accounts on Reddit, Twitter and elsewhere, Binance’s trading bot may have been hacked to prop up the value of Viacoin (VIA), a little-known cryptocurrency that shot up more than 250% on Wednesday. At the time of writing, Viacoin was trading at around $3.70, a gain of 50%. Trading volumes for the altcoin surged to $194 million.
Trading bots are software programs that buy and sell financial assets on behalf of traders. The algorithm executes buy and sell orders based on market movement and pre-defined rules.
Bitcoin plunged by as much as 11% on the news, hitting a session low of $9,692.12, according to CoinMarketCap. It was last down around 8% at $9,939.
Several updates have trickled in over the hour, all of which suggest Binance is desperately working to resolve the issue. The exchange struggled with server downtime after a flood of complaints about wrongly exchanged crypto currencies. The exchange’s customer service department has told users that a password change was not required at this time.
As Binance has quite a issue before also and they have deal with it. So I'm not very worried about it. But at the very least guys you should have a ledger where you can store your crypto assets offline.
Basically what my gut feelings is that people were able to hack the actual trading bots of Binance in order to make the altcoin they have pumped super high. And obviously they owned that coin and sold off once it got super pumped. I'm sure Binance will completely resolve this. Its crazy how rumors of Binance hack shakes the whole market , how influential this market actually is.
The founder of Binance has respond to this "ALL FUNDS ARE SAFE. THERE WERE IRREGULARITIES IN TRADING ACTIVITY, AUTOMATIC ALARMS TRIGGERED. SOME ACCOUNTS MAY HAVE BEEN COMPROMISED BY PHISHING FROM BEFORE. WE ARE STILL INVESTIGATING. ALL FUNDS ARE SAFE.
Hopefully that's gonna calm some panic.
Overall I think your funds are gonna be safe and I don't think you guys need to worry too much. Binance I hope will resolve every issue that was caused. I'm sure they are completely flooded with complaints and problems right now. But they seem to be very transparent and get everything sorted.
In terms of how people are gonna get profit out of this, assuming everything is sorted and they're new issue and nobody is getting their fund stolen permanently. Binance make solution to the problem you would expect coins to bounce back after this.
Non of this is financial advice but when crazy news happens major overreaction typically you can pick up some of you're coins at nice discount because a lot of coins are down for like 10% right now from where they were. If everything gets resolved it should return back to the mean and you guys can go about holding and hopefully profiting if you are buying at right time. As I said it is based on the fact if everything gets resolved but if if it doesn't yes there would be a major tank, but as of right now I have no reason not to trust Binance and I think they are gonna do a good job at resolving everything. So I'm personally not too worried.
So once again it was a good reminder for you guys that you should not be storing all of your coins exchange. You should have them stored safely.