LiveCoin announces closure, and major investors may freeze BTC investment plans
Crypto exchange LiveCoin announces the termination of work
Cryptocurrency exchange LiveCoin announced that it would cease operations. Earlier it became known about the hacking of the platform and theft of users’ cryptoassets.
According to the latest statements by representatives of LiveCoin, the remaining crypto coins at the disposal of the company will be paid to users. It is also noted that the investigation of the attack on the platform is ongoing.
“Our service suffered significant technical and financial damage. It is not possible to restore the work, so we decided to close the project and pay the remaining funds to the clients, ” the platform representatives wrote.
Applications are accepted until March 17, 2021. They can only be sent from addresses associated with LiveCoin user accounts. Clients of the platform must write to the address: firstname.lastname@example.org.
The recent decline of BTC has influenced the attitude of the institutions towards the crypto coin
Wall Street financial managers may freeze investment plans in the main cryptocurrency. The reason is the recent decline in the BTC rate by 25% in just 24 hours. Bloomberg writes about it.
“Burning a hole of that size in the corporate rainy day fund would amount to a career-ending wipeout at virtually any S&P 500 firm “, — noted the experts of the media.
As reported by Bloomberg, BTC has already attracted some institutional investors, but it is still far from large-scale investments. The volatility of the crypto coin and serious corrections in the asset price are significant risks for financial managers, says Robert Willens, professor at Columbia Business School.
“It would be a red flag for investors if a corporation bought financial assets for speculation purposes unrelated to their core business,” said Michael O’Rourke, chief market strategist at JonesTrading.
Expert: Ethereum is just an experimental product
Investment strategist Lin Alden analyzed the Bitcoin and Ethereum networks. She believes ETH is functional because “a lot of smart developers are working on it.” But in the long term, it is unlikely that the ETH network will turn into an economically stable project due to the fact that Ethereum is still only an experimental product.
In addition, the strategist noted that Ethereum can be successful in terms of growth in the value of the cryptoasset. But for now, the network is a “speculative instrument at the initial stage of development”, and not a finished product in comparison with BTC.
“Ethereum attracts more of a gamer culture, and more experimentation. Maybe in another 5 years when Ethereum 2.0 is in place and functioning for a while, with consistent monetary policy for that whole time, it can be considered largely a finished project like Bitcoin. Until then, it’s experimental,” Alden said.