Charlie Lee, Litecoin (LTC) founder, pointed out in an interview that the recent hack of leading crypto exchange Bithumb “doesn’t really change the fundamentals of Bitcoin.”
The reduced price of Bitcoin is a natural reaction due to the hack because people get scared. However, the hack of a crypto exchange does not necessarily affect Bitcoin’s (BTC) fundamentals just as a bank robbery must not affect the price of gold:
“If the exchange does not protect the coins well enough and gets hacked, it doesn’t really change the fundamentals of the coin they are protecting.”
According to Lee, though the process is improving, there is still a lot to improve. As of now, crypto exchanges are exploring and learning ways to protect customers’ funds better.
Bitcoin is still going strong, despite the drop by 60-70 percent. In fact, its network has become much powerful over the past few years. With this in mind, Lee believes that the price will bounce back up again any time soon.
Lee claimed during the interview:
“I’ve been in this space for seven to eight years now and I’ve 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.”
South Korea’s leading crypto exchange Bithumb has been hacked on June 19, losing an amount of $30 million worth of cryptocurrency. As a result, the exchange had to momentarily suspend all deposits and payments.