Uncertainty in crypto markets as biggest Canadian exchange shuts
This month, the price of cryptocurrencies has remained relatively unchanged as investors ponder about the future. The biggest worry among the investing community is about the security of the digital assets. Last month, two reports revealed that cryptos worth billions of dollars were stolen in 2018. In January of the year, Coincheck, a large Japanese exchange lost more than $500 million to hackers.
The challenge now comes after the sudden death of Gerald Cotton. Gerald was the CEO and founder of an exchange called Quadriga CX, which was based in Canada. The exchange has cryptocurrencies worth more than $200 million. With his passing, it has become impossible for the staff and clients to access the currencies they hold because he was the only one with the passwords. His computers, mobile devices and email addresses were encrypted, which makes accessing the digital wallets impossible. Experts brought in to hack the system too have not been able to do so. In a statement, the firm’s directors said:
For the past weeks, we have worked extensively to address our liquidity issues, which include attempting to locate and secure our very significant cryptocurrency reserves held in cold wallets, and that are required to satisfy customer cryptocurrency balances on deposit, as well as sourcing a financial institution to accept the bank drafts that are to be transferred to us. Unfortunately, these efforts have not been successful.
The price of Ethereum has remained unchanged at $105. This price is also lower than the YTD high of above $150. This price is below the 100-day and 50-day EMA while the RSI has remained unchanged at the 45 level. There is a likelihood that the ETH/USD pair will move lower to below the 100 level.