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2000 Bitcoin Airdrop? Bithumb Addresses Incident

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BTC/KRW vs BTC/USDT on Binance and Coinbase

South Korean cryptocurrency exchange Bithumb has officially confirmed that an operational error led to an abnormal Bitcoin payout during a promotional event.

The incident triggered a brief but sharp price dislocation on the platform before markets stabilized within minutes.

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Bithumb Confirms Accidental Bitcoin Payout

In a statement, Bithumb apologized to users, acknowledging that “an abnormal amount of Bitcoin was paid to some customers” during the event, which caused temporary volatility as recipients sold the assets.

“The Bitcoin price temporarily fluctuated sharply as some accounts that received the Bitcoin sold it,” the exchange said.

According to Bithumb, its internal monitoring systems quickly detected the abnormal transactions. The platform responded by restricting trading activity on the affected accounts, which helped contain the disruption.

“As a result, the market price returned to normal levels within 5 minutes, and the domino liquidation prevention system functioned normally, preventing chain liquidations due to the abnormal Bitcoin price,” the company stated.

The clarification comes after Bitcoin briefly traded significantly below global market rates on Bithumb, fueling speculation about the cause of the sudden price drop.

BTC/KRW vs BTC/USDT on Binance and Coinbase
BTC/KRW vs BTC/USDT on Binance and Coinbase. Source: TradingView

Bithumb emphasized that the incident was not the result of a cyberattack or security breach.

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“We want to make it clear that this incident is unrelated to any external hacking or security breach, and does not pose any issues with system security or customer asset management,” the exchange said.

Impact on Bithumb Customer Funds

The company also reassured users that customer funds remain safe and that core services are operating normally.

“Customer assets are being safely managed as before, and transactions and deposits/withdrawals are currently operating normally,” the statement added.

Importantly, Bithumb indicated that no customers suffered losses as a result of the incident, noting that it is continuing to review the situation and will disclose further details as necessary.

“It is understood that this incident did not result in any loss or damage to customer assets. We will share all follow-up actions transparently and take full responsibility to ensure that not a single customer is harmed,” the exchange said.

The episode highlights how operational errors, even when quickly resolved, can trigger sharp short-term price distortions in crypto markets, particularly on individual exchanges where liquidity conditions differ from global averages.

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Bithumb concluded its statement with another apology, saying it would strengthen safeguards and continue working to provide a stable trading environment.

“Once again, we deeply apologize for any inconvenience caused. We will continue to do our best to provide a stable and trustworthy trading environment.”

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Crypto World

Oil Rose 3% to Open the Week: Here’s What Moved the Market on Monday

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Oil prices jumped more than 3% on Monday, pushing Brent crude above $116 a barrel. West Texas Intermediate (WTI), the US benchmark, climbed to roughly $102 per barrel.

The latest rise comes as the US-Israel war on Iran entered its fifth week with no signs of abating.

Oil Extends Its War-Fueled Rally 

Several escalatory developments over the weekend fueled the surge. President Donald Trump told the Financial Times he could possibly seize Kharg Island, the terminal that handles roughly 90% of Iran’s crude exports.

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The US president struck a mixed tone on diplomacy with Iran, saying he was “pretty sure” of making a deal with Iran but conceding that talks could still collapse.

Meanwhile, Iran’s parliament speaker warned that Tehran would “set them on fire” when American forces arrived and promised consequences for US-allied nations in the region. 

The oil price surge is far from over, according to market analysts, who warn that the prolonged closure of the Strait of Hormuz could drive crude even higher.

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“A scenario in which the Strait remains closed for an additional month would be consistent with oil prices rising towards $150/bbl and constraints on industrial consumers of energy supply,” Bruce Kasman, global head of economics at JPMorgan, said.

According to Bloomberg, US officials and Wall Street analysts have also begun discussing the possibility of crude reaching $200 per barrel.

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Asian Stocks Tumble, Crypto Feels the Pressure

The energy shock rippled across Asia. Google Finance data showed that Japan’s Nikkei 225 fell over 4.5%, while South Korea’s KOSPI dropped more than 4.3% as import-dependent economies repriced risk.

The volatility has spread to crypto markets, with asset prices dipping early in the morning before rebounding. 

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“The market briefly crashed just now — ETH dropped below $1,940 and BTC fell below $65,000,” Lookonchain reported.

Oil above $100 per barrel continues to pressure risk assets by fueling inflation expectations and delaying anticipated Federal Reserve rate cuts.

The post Oil Rose 3% to Open the Week: Here’s What Moved the Market on Monday appeared first on BeInCrypto.

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Lido DAO Mulls $20M LDO Buyback to Boost Token Price

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Lido DAO Mulls $20M LDO Buyback to Boost Token Price

Lido’s decentralized autonomous organization is considering a one-off $20 million buyback of its governance token to address so-called price dislocation, which is at “historically depressed levels” relative to Ether, according to the DAO. 

The proposal, submitted Friday, seeks permission to swap 10,000 Lido Staked Ether (stETH) tokens, currently worth $20 million from the DAO’s treasury for Lido DAO (LDO), arguing that LDO is undervalued.

“This is not a routine fluctuation. It represents one of the most significant dislocations between LDO’s market price and its underlying protocol fundamentals in the token’s history.”

A token buyback of this size could boost the price of the token, which has fallen roughly 96% from its all-time high. In November, a Lido DAO member pitched an automated buyback mechanism for LDO to improve the token’s price. However, that proposal hasn’t been implemented.

LDO’s change in price relative to ETH since 2024. Source: Lido DAO

Lido DAO pointed out that LDO is trading at a steep discount to Ether (ETH) at a ratio of 0.00016, roughly 63% below its two-year median.

This is despite the protocol holding the top spot of the Ethereum liquid staking market, with a 23.2% share of staked Ether, according to Dune Analytics data. The protocol’s dominance has even been flagged as a centralization risk to the network in previous years.

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Share of Ethereum network validators. Source: Dune Analytics

Related: Ethereum builders propose ‘economic zone’ to tackle L2 fragmentation 

LDO is currently trading at $0.30, down 95.9% from its $7.30 high set in August 2021, according to CoinGecko data. LDO’s $255 million market cap makes it the 141st largest token by value at the time of writing.

“That dislocation is not justified by a proportional deterioration in protocol performance,” Lido DAO said. 

Lido DAO proposes buying stETH in batches

Lido DAO proposed buying up to 10,000 stETH in smaller batches of 1,000 to buy LDO. 

Lido DAO said it would use limit orders or adopt a dollar-cost averaging strategy to avoid market volatility. 

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