Crypto Scandals of 2018

Crypto Scandals of 2018

Unhackable wallet

In summer John McAfee launched a cryptocurrency wallet Bitfi, which is, according to McAfee, impossible to break. Well, it was allegedly hacked in a week. Both specialists and amateur hackers managed to deal with that. Those who claimed they had hacked the wallet faced some negative reactions from Bitfi SMM-manager who urged the hackers not to forget who they had picked to fight with and what consequences could be. McAfee himself did not acknowledge his defeat but the general public drew conclusions.


Pumps/dumps from Goldman Sachs
 

This piece of news made crypto enthusiasts upset: a large bank Goldman Sachs canceled its plans to open a cryptocurrency trading desk. The bitcoin tumbled after it appeared. It would be OK, if Martin Chavez, CFO Goldman Sachs, did not respond that it was “fake news”. Was it a coincidence or speculators’ work — no one knows for sure.

Tether’s Drop

In October investors began to leave the Tether project. The reason for it was strong plunging of the stablecoin. This brought the stability of USDT into question. Some of those who believed in Tether’s bright future changed their opinion.


Failure of the Year

 

One of the most promising ICO was EOS. Unfortunately, this startup proved to be a failure. A month after the end of ICO and the testnet launch, the project was accused of centralization. It all started with Redditor auti9003 who noticed that EOS arbitrator had ruled to reverse transactions from a hacked account. Then auti9003 submitted a post to the /r/Cryptocurrency subreddit about it and the discussion started: participants heavily criticized EOS and its policy. Some people wondered how ridiculous it was that the startup had managed to raise such a huge sum of money - 4 billion dollars.



Civil crypto war

Bitcoin Cash hard fork could be considered the most prominent event of November. It provoked the start of so cold ‘hash wars’ between Craig Wright, an advocate of Bitcoin SV, and Roger Ver, a supporter of Bitcoin ABC. All of these was accompanied by a war of words in Twitter space. Other crypto enthusiasts joined this “online fight”, for example, co-founder of Bitmain Jihan Wu. The bitcoin itself reacted too, it crashed by 10%. We can claim that Roger Ver won as right now Bitcoin ABC costs 230$ and Bitcoin SV only 89$.