After a sustained market rally that had been gaining momentum for just over one week, yesterday’s fall-out from the MyEtherWallet phishing scam appears to have put a brake on what had been a long awaited market reversal.
Leading Altcoins Stellar (-11.5%), Monero (-12.5%), IOTA (-14%) and Cardano (-11%) have all registered strong twenty-four hour losses although Bitcoin itself had appeared to be maintaining its recovery until early this morning, before beginning to register a slight loss of 2% at the time of writing.
Some alts, noticeably Steem (+0.5%) and Decred (+20%) have nonetheless managed to defy the market panics and maintain their bull runs.
Markets Overreact Once More
This latest entry in the pantheon of crypto market over-reaction appears to have been sparked by a series of misrepresentations of the MyEtherWallet phishing scam that had occurred yesterday at around 12:00 UTC.
Interpreted incorrectly in some quarters as a compromise of the MyEtherWallet platform itself, yesterday’s hack of a subset of Google’s DNS servers sparked a subsequent panic sell-off of Ethereum, before appearing to spark a larger domino effect which then dragged down the price of Alts with a high exposure to ETH trading pairs.
The overall result was a knock-on effect on the price of all trading pairs, finally dragging Bitcoin into negative territory in the lead up to noon (UTC) earlier today.
“It is another example of how and why we need trade pair flexibility – now,” stated Joshua, Bancor Network advocate. “Everyone is aware that Bitcoin dominance in the market is generally a bad thing. We have now just seen our first major example of an altcoin bringing a similar effect to the market.”
The Bancor network is one of the few trading platforms that seeks to facilitate trade-pair agnostic crypto trading. However, it is currently only one of a small number on the market seeking to do as as the dominant trading platforms continue to offer BTC and ETH trade pairs as their principal methods of exchange.
“[People] ignore all of the very explicit browser warnings about invalid SSL/TLS certificates then … hand cash to a complete stranger,” states ‘herpherpthrowaway223’ on Reddit. “The failure is at the hands of the users.”