After being down for unscheduled maintenance for more than 24 hours, New Zealand exchange Cryptopia has confirmed via twitter that the exchange suffered ‘significant losses’ in a Jan. 14 (local time) security breach.
The Initial Coin Offering (ICO) has been a fundamental part of crypto startups since their rise in popularity during 2017 and was largely responsible for the subsequent cryptocurrency bubble. Startups or projects creating new currencies, services or apps launch an ICO to attract investors with an established digital token (Ethereum, Bitcoin etc.) and in exchange investors receive new tokens that they generally believe will provide a future return on their investment. This is roughly the equivalent of mainstream commerce’s Initial Public Offering (IPO) as a way of raising investment capital, except ICO tokens issued by blockchain businesses allowed access to the startup’s product or service, rather than representing any claim of ownership in the venture.
The last 24 hours has seen Bitcoin drop below $4k, with more than $11 billion dollars wiped from the total market capitalization, according to data procured from CoinMarketCap.
Circle has claimed that the company’s Over-The-Counter (OTC) trading business, Circle Trade, completed $24 billion dollars in cryptocurrency transactions in 2018, according to an official Medium blog post on Jan. 3.
Cryptocurrency lenders are faring well in an industry shedding its old skin of once overvalued projects with now flailing treasuries thanks to the recent cryptocurrency bear market.