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Bithumb Hack “Fundamentals of Bitcoin Does not Change” Says Charlie Lee

Speaking via telephone, the founding father of the world’s fifth-largest cryptocurrency by market cap is known that whereas it’s normal for cryptocurrency investors to panic once an exchange gets hacked, such an act doesn’t change the basics of crypto assets. Litecoin’s founder then drew parallels to a gold heist at a bank, the difference of opinion that in theory it shouldn’t have an effect on the value of the precious metal. Likewise, according to Lee, the hacking of a cryptocurrency exchange shouldn’t have any impact on the basics of crypto assets.

Charlie Lee, the founding father of Litecoin, went on CNBC’s Fast Money program on Wed to debate the recent hacking of South Korea’s cryptocurrency exchange Bithumb, among different developments within the crypto sphere.“Whenever there’s an exchange hack, individuals get frightened and also the value drops. It happens all the time. The factor is it doesn’t very change the basics of Bitcoin and alternative cryptocurrencies,” said Lee.

Lee aforesaid the responsibility of protective crypto assets shouldn’t all have it off exchanges like Bithumb. He argued that investors should be liable for the protection and safety of their digital assets by creating wise selections with regards to the exchanges they entrust their coins with. Compared to ancient fiat currencies, investors should bear additional responsibility. However, Lee in agreement that huge strides ought to be created with a reading of rising the security systems of the exchanges. However, Litecoin’s founder was fast to signify that cryptocurrencies are a nascent technology and exchanges are still on the training path, with enhancements perpetually being created, although a lot still remained to be done.

Currently, several developers are targeted on rolling out the main net unleash of the Lighting Network, that is predicted to boost Bitcoin’s measurability. However whereas the Lightning Network was primarily developed with Bitcoin in mind, the protocol has been custom-made for Litecoin and alternative networks additionally. With regards to developments within the cryptocurrency sphere, Lee determined that Bitcoin developers had created nice strides within the recent past and this enclosed the activation of SegWit.

When asked however long the market would last, Lee couldn’t hazard a guess, noting that having been within the area for between 7-8 years, he has witnessed bear markets that have lasted for a amount of between thirty six to forty eight months and it had been thus not possible to predict whether or not this specific one can last even as long or bulls can take over presently. Despite the progress created, Lee lamented that the price of the flagship cryptocurrency had fallen by between 60-70% and this wasn’t reflective of recent technological advances. Lee, however, expressed hope that with time the value can go with replicate the progress that had been created. Per Lee, the sole reason for this costs was the irresistibly bearish sentiment.

On the same Fast Money show, Lee conjointly commented on the report by the Freeh, Sporkin & Sullivan LLP law firm that Tether’s USDT tokens are totally backed on a magnitude relation of one to one by US dollars. He noted that if this were so true, the markets would enjoy enhanced confidence. As proof, he noted that cryptocurrencies rose slightly once the report came out.

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