- Over the weekend, the FTX hacker made some bold plays that pulled the market back.
- BTC is down 4%, while Ether has shed almost 8% of its value in 24 hours.
- Vitalik Buterin emphasized the stability of the underlying technology of cryptocurrency, the blockchain.
On Monday, the crisis stemming from the downfall of Sam Bankman-Fried and his once mighty FTX crypto empire sent cryptocurrency prices down even further.
The FTX hacker, who stole nearly $600 million from the defunct FTX exchange, got rid of the stolen cryptocurrency over the weekend. This led to a crash in prices and other cryptocurrencies.
Bitcoin, the largest cryptocurrency, is down nearly 4% in the past 24 hours, while Ether, the second largest, is down about 8%. , a meme and measure of the digital world’s hottest sentiment, fell 11%.
FTX Hacker Dumps ETH Holdings
The hacker who stole from the now-defunct FTX exchange on November 12 has been extremely busy for the past 48 hours. To purge stolen assets, the hacker appears to rely on decentralized pools and crypto bridges.
The FTX thief (or thieves) made headlines last week when they emerged as one of the largest holders of ether in the world with around $288 million. According to tweets posted by blockchain experts Chainalysis on Sunday, the funds stolen from FTX are “on the move,” with some likely being transferred from Ether to Bitcoin in an effort to “extract funds.”
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1/ FTX stolen funds are on the move and exchanges should be on high alert to freeze them if the hacker tries to cash out
– Chainalysis (@chainalysis) November 20, 2022
On-chain data shows that the hacker exchanged 25,000 ETH worth $30 million for Bitcoin. Over the weekend, this action sparked widespread concern, sending ETH prices down 8% over the past 24 hours.
Digital assets and the blockchain technology on which they are built have come under fire recently due to a number of factors. These include major corporate failures, the potential for criminal activity, and a 72% drop in a scale of the top 100 tokens over the past year.
As of this writing, Bitcoin is around $16,027, which is a significant drop from its all-time high of around $69,000 in November 2021. Ether was around $1,124.
on the flip side
- However, the co-founder of Vitalik Buterin has defended the blockchain technology. Buterin said that the entire cryptocurrency industry can learn from what happened to FTX. While acknowledging the devastating effects of the collapse of Sam Bankman-Fried’s crypto empire, Buterin stressed the resilience of cryptocurrency’s purported underlying technology, the blockchain.
- In a Twitter post, Bill Ackman, founder of Pershing Square Capital Management, said cryptocurrencies account for less than 2% of his assets, but he remains optimistic about the sector as a whole, citing the potential social impact of cryptocurrency. On a par with the telephone and the Internet.
Why should you bother
Like many in the crypto community, Buterin recently took to Twitter to suggest ways exchanges could work to boost user confidence in the sector. After FTX went down, the financial services industry as a whole had to do some soul-searching, especially when it came to issues of transparency and risk. The cascading effect of the SBF’s negligent actions is expected to increase.
Read more about the cryptocurrency market and FTX hack:
FTX Hacker Hoarding Ethereum (ETH) for a potential market short
The Ethereum Whale wallet has been active for six years ahead of the $1,500 ETH rally