Cryptocurrencies have grown massively in terms of becoming an investment. By being digital assets, people have seen how these coins have so much potential in having their value grow. More importantly, what makes it more appealing is its decentralized nature and usefulness.
Ethereum (ETH) has massively grown to be the world’s second-best crypto next to Bitcoin. It has an impressive value and the ability to be used on various platforms and apps. This asset’s massive potential makes it interesting in the eyes of investors and people with ill-intent as well.
Recently, ETH’s value slipped as an FTX hacker splits millions worth of assets across different wallets. Still, the coin managed to bounce back just a few days after. In case you missed it, read along this Bitcoin blog to learn about what happened:
How its value crashed
The value crash all started when an FTX hacker stole a large amount of ETH tokens and started converting them to Bitcoin. It was said that the total amount of stolen assets is valued at more or less $288 million. About 30,000 ETH has already been exchanged into BTC and made its way into the BTC ecosystem.
This instance has prompted Ethereum’s value to crash hard. Simply put, it can be seen that the value has dropped by 8%. Some people even think that the price can continue to go lower because of this, eventually reaching below the $1000 mark. Some people also continue to assess the damage that was triggered by this certain situation.
FTX currently owes a small number of creditors more than $3.1 billion, and the exchange is unable to find a way to pay off the sizable debt. Additionally, there is growing worry in the cryptocurrency community that more exchanges will crash as a result of the general market crisis.
What happened to the hacker
So far, the hacker is yet to be identified but some believe that it can be an insider. Whoever it might be, the hacker quickly becomes the biggest ETH whale by holding nearly $300 million.
When the hack took place on November 11th, the hacker first received 35,185 PAXG stablecoins in a span of 1000 transactions. He later converted these to ETH. He received $50 million worth of DAI stablecoins which he also converted.
Once the culprit is determined, it is believed that he might be charged with a 10-year jail term in China. This is similar to how another ETH hacker was charged with such in 2018.
How it recovered
Some people thought that the downward trend of the popular asset will continue for quite a long time. However, this was not the case as ETH had recovered quickly as it rose by 1.3% at around $1600. This happened along with the rise of Bitcoin’s value.
This comes shortly after the Federal Reserve announced that they will continue their aggressive monetary policies that will fight against inflation. This had a positive effect on the crypto industry and caused nothing but positive effects on the assets.
What experts have to say about it
Following all the fiasco about the stolen ETH and how the coin bounced back in terms of value, several crypto experts had decided to share their thoughts about it online. Among these is Nansen research analyst Sandra Leow who made an entire Twitter thread about the situation. There, she also elaborated on the current state of decentralized finance and how it is affected by what happens with ETH.
‘Due to their exposure to the FTX fallout, they had to offload some tokens out of exchanges in need of liquidity. In the last seven days, we’ve seen Jump Trading withdrawing ETH, BUSD, USDC, USDT, SNX, HFT, CHZ, CVX and various other tokens from multiple exchanges’, Leow stated.
‘Perhaps, the market contagion and prolonged bear market reduce the appetite for traders to be actively investing and involved in the space’, she also added.
These are just some updates about the popular crypto and how it is being valued lately. By learning more about the latest updates on Ethereum through this Bitcoin blog, you may be updated and be aware of certain factors that contribute to its value.
