This Wednesday, reports emerged of altcoins being automatically traded to Bitcoin (BTC) at the market price without their consent or approval on Binance exchange. Affected users used the Reddit platform to vent their anger with most of them using bots to trade. The Binance team offered a response to the issue to calm the outraged users.
“We are investigating reports of some users having issues with their funds. Our team is aware and investigating the issue as we speak. As of this moment, the only confirmed victims have registered API keys (to use with trading bots or otherwise).” The report read. “There is no evidence of the Binance trading platform being compromised.”
The cryptocurrency exchange later confirmed all was in control from their end and they are working towards determining exactly what happened. Binance CEO Changpeng “CZ” Zhao gave a statement on his Twitter feed confirming all irregular trades were reversed and the withdrawal stoppage lifted. He also promised a detailed account of the wrongful and unauthorized trading happenings this Wednesday.
Absurdly, it is the hackers who lost coins as they tried a heist on the exchange. All the recovered coins will be donated to charity.
Google Searches drop by over 80%
This Thursday, a report published by Bloomberg states that google searches for Bitcoin (BTC) has dropped by over 80% since the huge craze about the cryptocurrency started late last year. Bitcoin has been on a consistent rise in google searches from October 2017 and saw the figure peak in late December. Since then, the number has seen a fall in the number of people searching the term.
Google searches of Bitcoin correlates with the price as we saw in December last year where the correlation in price of bitcoin and number of searches was 91%. This shows that in cryptocurrencies in general, number of searches gives indicative feature of future price. This also coincides with the recent fall in prices that saw Bitcoin lose over 60% of its price this year from its all-time high of $20,000 as google searches dropped by 80%.
However, this is not a total sure way of determining future price as some argue that personal interest in Bitcoin (BTC) and other cryptocurrencies is quite different from interest that a traditional assets investor may have. Currently, the market for cryptocurrencies is the large audience of younger generation investors who technically have no use to google the term ‘Bitcoin’ since they already know about it.
Bitcoin investors lose over $50 million in South Africa
BTC Global, a cryptocurrency investment firm in South Africa, lost over $50 million of individual investors funds reports Hawks, the South Africa’s Directorate for Priority Crime Investigation. The company promised its investors a 14% weekly return on any Bitcoin (BTC) investment made on the platform. The scam, robbed over 27,000 investors then exited the market leaving some messages on the company’s website.
The owners of BTC Global claimed that the funds were being raised by Steve Twain, a ‘fictional’ character till now, as he positioned himself as the investment manager of the funds traded in the company. Investigations are ongoing to find the alleged scammer and bring him to book. This is not the first case of such scams and Ponzi schemes hence I would urge all our readers to be careful before investing any amount in this volatile cryptocurrency arena. Do your own research.