The 2018 FUD train continued rolling into March as more potentially bad news dropped today, scaring cryptocurrency investors and sending markets to fresh 10-day lows.
First, there are unconfirmed reports that Binance, the top cryptocurrency exchange in the world by trade volume, may have had its system breached via a third party trading tools. Suspicion of a breach first rose when users began posting to Reddit that they were seeing weird trading activity on their accounts.
One Redditor wrote, “my balance dropped by 25%, I now have VIA and 3 of my coins were sold in their entirety. I bought one of them back, only to have it sold again.” Others piled on reporting similar activity, with the common thread that they all leveraged third-party trading tools.
Binance responded that the issues stem from third-party trading bots and that “there is no evidence” of the platform itself being compromised. The only users affected are those who have issued API keys on their accounts.
Piling onto the uncertainty, the SEC announced today that they will be applying extra scrutiny to cryptocurrency exchanges with the goal to have each register as registered trading platforms. This is due to the SEC’s position that crypto assets should be treated as securities, and thus be subjected to greater regulation.
While neither piece of news is anything that should cause a major sell-off, the market has been very uneasy since the choppy start to the new year. Currently, it looks like $10,000 is acting as a psychological support level for bitcoin.