Bitcoin’s value took a small hit on Monday evening after a huge hack happened on another cryptocurrency, which is called Tether.
The affected cryptocurrency, Tether’s value is based on the US Dollar. Representives of the Tether network had said that $30,950,010 of the tokens were “removed from the Tether Treasury wallet” on Sunday and “sent to an unauthorized bitcoin address.” Looks like someone just hit the jackpot with this Tether grab.
However, in order to combat the hack and theft of the Tether coins, the operators of the network said that would blacklist the address, so that the stolen tokens wouldn’t be able to be converted into U.S. dollars.
After the Tether hack, some folks in the cryptocurrency community had voiced their concerns on the lack of transparency from Tether in dealing with the situation. The main concern was the the implication of Tether being able to disable specific addresses, which more or less, defeats the moral purpose of cryptocurrency.
News outlets were also quick to chime in on the Tether hack situation, claiming that bitcoin’s value fell by 5.4%, which was the biggest dip that it has ever felt in a single week period. But, Bitcoin quickly recovered from the hit within hours and was trading a little above $8,200 USD or 10,500 CAD by 5:30 a.m. EST.
Tether is not a big factor in the cryptocurrency world like bitcoin or Ethereum, as it is only supposed to pose as a proxy for currencies like the dollar, euro and yen. The main concept of Tether is for tasks such as settling balances between exchanges. The cyptocurrency obviously uses blockchain technology, but claims to be more stable than bitcoin because of its currency pegs.
The question now is, will the hacked Tether tokens be able to be converted into something other than the USD dollar, as the network says they will blaklist the address. Or is the hacker(s) now screwed with over 30 million of Tether tokens and nowhere to cash out. It will be interesting to find out how this story plays out.
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