MapleChange is the latest cryptocurrency exchange that has been hacked. It lost around 913 bitcoins that are roughly around $6 million. Right after the incident, MapleChange decided to shut down their social media. And because of this, many were speculating that the crypto exchange is basically running a crypto scam. According to the crypto exchange, it was a bug caused the problem.
The good news is that MapleChange’s twitter is back. And also, the price of Bitcoin doesn’t look unfazed. In fact, Bitcoin has remained remarkably stable in the past months. In comparison to some tech-related stocks, Bitcoin seems to become less volatile.
Reason for Stability
There are a number of reasons for the stability of Bitcoin. You have the investors that are becoming interested. Investors could be holding on to their Bitcoin mainly because of the possibility of another bull run. For instance, you have the US Securities and Exchange Commission that is on the brink of approving a Bitcoin ETF. Though they have already rejected some applications, this could definitely be a game changer. Many believe that this could eventually bring institutional investors into the picture.
And speaking of institutional investors, Bakkt and Fidelity into the picture make it even possible to see more institutional investors to participate in the crypto market.
Last year, in November 2017, investors witnessed Bitcoin go above $8,000. The reason behind the spike last year was also because of the speculation that there will be a BTC futures for institutional investors. By December, Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (Cboe) did launch its futures contract. However, as for the number of institutional investors at play, it didn’t play out according to expectations. All of these things can change if the US Securities and Exchange Commission decides to have a Bitcoin ETF.
Hacking Incidents and Price Fluctuation
It isn’t surprising to see Bitcoin drop in value after a hacking incident. However, the good news is that the latest hacking incident in Canada is not as bad as the last ones. For instance, you’ve had Coincheck that lost $500 million worth of cryptos.
However, regardless of the amount that has been lost, it is ideal to have the right kind of approach on cryptos. Japan has started regulatory measures that aim to protect investors. These rules involve checking the security measures of the company. And so far, Japan hasn’t approved new crypto exchanges to operate in the country.
Recently, Japan allowed the niche to self-regulate. This means that the association of exchanges is now in charge of overseeing and policing the industry. Could it be the best approach to the crypto market?
What if MapleChange did an exit scam? Is there a way for the investors to get their funds back? Does Canada have enough regulations that can look into this case? These days, it is now becoming common to see scams. It ranges from ICOs that are suddenly disappearing to crypto exchanges that are said to be doing exit scams. In order to get more investors, it is imperative to have these issues addressed.