The Effects of the DAO and Bitfinex Hacks on Bitcoin Exchanges

BitsPlan

The following is a summary of the speech given by Gavin Smith, XBT / First Global CEO at the conference on Blockchain Capital Markets held at the BT Auditorium – London on September 9, 2016.

I’m not going to focus on the details of the Bitfinex hack itself and subsequent attempts at resolution – there are already many thousands of column inches devoted to that subject available on the internet. Instead I’m going to touch on the immediate effects on the newly formed capital market structures, how the market in general and my company in particular responded to the hack and what changes we’re seeing in the market as a result of this event. Just keep in mind that these are our experiences and our customers’ who have a very particular expectation from the marketplace.

Market Impact

The initial and most obvious impact following the Bitfinex hack was the decline in the price of bitcoins. The market still remembers the persistent slide in bitcoin value after Mt GoX, so the immediate knee jerk reaction of price reduction was not unexpected. In parallel to price decline, volume in the market became very sporadic.

I believe many active market participants followed the same course of action that

Read more ... source: TheBitcoinNews

NO COMMENTS