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Litecoin founder Charlie Lee says that the recent Bithumb hack cannot affect Bitcoinâs fundamentals the same way a bank robbery should not affect the price of gold.
The recent hack of leading crypto exchange Bithumb âdoesnât really change the fundamentals of Bitcoinâ Litecoin (LTC) founder Charlie Lee stated in an interview with CNBC June 20.
According to Lee, the price drop is a typical reaction of the market to the news about the hack, and âit happens all the time,â because people get scared. According to Lee, the hack of a crypto exchange does not affect Bitcoinâs (BTC) fundamentals just in the same way as a bank robbery should not affect the price of gold:
âIf the exchange does not protect the coins well enough and gets hacked, it doesnât really change the fundamentals of the coin they are protecting.â
Considering the recent hack, Lee claimed that crypto exchanges right now are exploring and learning the ways to better protect customersâ funds. As per Lee, the process is improving, but still âthere is a lot to improve.â
Lee also stressed a âparadigm shift for personal finances with Bitcoin,â meaning that people have to get used to protecting their coins, âmuch better than traditional finances.â
According to Lee, despite the drop by 60-70 percent over the past year, Bitcoin is still âgoing really well,â claiming that its network has become much stronger over the past few years. Lee says that the current price of Bitcoin seems to be âdisjointed from the actual development of Bitcoin,â and suggests that the price will rebound and âcome back up fairly soon.â
In the interview, Lee also suggested that the market is currently in a bear position, but it is hard to say how long will last â three to four years, or one day:
âIâve been in this space for seven to eight years now and Iâve seen bear markets last three to four years now. So, this one could be a three to four year market or it could recover tomorrow.â
On June 19, South Korea's leading crypto exchange Bithumb was hacked, leading to the loss of $30 million worth of cryptocurrency. The exchange had to temporarily suspend all deposits and payments. According to Coinmarketcap, Bithumbâs 24-hour trade volume has dropped to around $236 million from $374 million reported June 19, moving the exchange from the sixth to the seventh largest crypto exchange by trade volume.
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