The KuCoin hack will drop Ethereum price! Why traders are not worried?
After the $150 million KuCoin hack, retailers seem unconcerned that open-market open sales by the hacker will lower the price of Ethereum.
Trying to sell tens of millions of dollars immediately after a crime is dangerous. All major negotiations are under scrutiny, and in this case, Tether (USDT) suspended funds linked to the KuCoin hack.
Analysts say an unidentified criminal after the violation of KuCoin was selling stolen ERC-20 tokens to Uniswap. Although selling tokens on Ethereum-based exchanges allows a criminal to access Ether (ETH), it does not mean that they have been deleted or destroyed.
All transactions made on the Ethereum blockchain network are tracked using blockchain testers, which means that even if tokens are converted to Ether, the stolen values will still leave traces. This means that the exchange will stop any exchange address associated with dirty money.
What analysts have to say?
With Tether actively tracking investments and major trades, such as Binance and Bybit affected by KuCoin, it has become increasingly difficult to sell currencies. Coin CEO Johnny Lyu said, “We are in touch with a number of major crypto transactions such as Huobi, Binance, OKEx, BitMax, and Bybit, as well as blockchain projects, security agencies, and law enforcement agencies. Effective steps have been taken, and we will be updating more details soon.”
As previously reported in several crypto news related articles, Bitfinex and Tether chief technology officer Paolo Ardoino said Tether had suspended $ 33 million USDT but Ardoino emphasized in a subsequent statement that there were strict guidelines to be followed to withdraw the money. He said “Tether may decide to withhold money in 2 cases: – legal / regulatory request – funds are sent to addresses that are not available (completely discreetly) This ability does not allow crypto users to participate in stupid fraud or pay little attention.”
Pressure on ETH Price
The criminal sold ERC-20 tokens to obtain ETH, but transactions with Ethereum addresses can be tracked using Etherscan. As large-scale domain transfers do not have privacy solutions, ERC-20 tokens will leave traces of follow-up. For this reason, many analysts are concerned that the move and market sales of Ether tokens will put pressure on Ether prices.