In a recent article, we discussed about the Bitfinex hack, its implications on the digital currency, and the possible future of the exchange, as it’ll implement better security measures.
Surprisingly, just one week after losing more than $60 million bitcoin in a hacking attack, Bitfinex has managed to once again become one of the largest bitcoin exchanges, judging by the current US dollar volume being traded.
In fact, during the last week, the Hong Kong-based exchange has managed to grab over 20% of the total USD/BTC trading. To put things better into perspective, it has managed to trade over 58,700 BTC, which amounts to roughly $36 million, during the last seven days.
Because of the high trading numbers, members of the community have begun wondering whether the large trading sums are due to the resilience of the exchange, or represent a grim signal, that account owners on the exchange are trying to get their funds back, as the exchange is still operational.
In fact, in a recent interview, a cryptocurrency investment firm founder known by the name of Jacob Eliosoff stated that: "A lot of the activity is likely related to people withdrawing their holdings out of fear. Withdrawal-driven volume isn't actually reassuring."
While the hack did affect Bitfinex’s image, the company’s perception took an even bigger hit from bitcoin traders, when they refused to be more transparent with their financial issues, especially as reports of Bitfinex’s solvency were circulating on social media. While some account holders decided to simply wait and see, others are wondering whether the exchange will remain solvent and operational following the attack.
Additionally, there’s yet another element that can play an important implication in whether the digital currency exchange will remain active- the Bitfinex token. This particular token is a blockchain-based asset representing debt for Bitfinex, which was given to its customers. While initially issued on the 7th August at the value of $1 per token, fluctuations have caused it to reach a low of $0.26, and then go back up to roughly $0.44.
In a recent statement, Arthur Hayes, the CEO of BitMEX, said that: "Bitfinex has published no public data about their financial health, so traders are either wildly bearish or bullish on Bitfinex's future prospects". He also seemed uncertain about the role and future of the token: "Does it represent a genuine claim on future Bitfinex earnings? What's their plan to pay back holders? Will courts and regulators let the BFX plan proceed, or will they step in with some other process like bankruptcy?”
Based on everything that has been outlined so far, what do you personally think about Bitfinex becoming one of the top exchanges all over again by trading volume? Is this good or bad news for the company? Let us know your thoughts in the comment section below.