At press time, the second-largest cryptocurrency and primary competitor to bitcoin has experienced another price slide. Ethereum now sits at $521, which is about $12 less than where it stood yesterday, and over $80 less than where it was just 48 hours ago.
The Coinrail hack has taken a massive toll on bitcoin, Ethereum, and several other major cryptocurrencies. While executives of the exchange claim the remaining tokens have been moved into cold storage, the hackers still managed to get away with over $40 million in assorted tokens, bringing down the price of Ethereum by over seven percent before it incurred a slight recovery period during yesterday’s early morning hours that brought it back up to roughly $533.
“Coinrail is a minor player in the market, and I can see how such small exchanges with lower standards on a security level can be exposed to more risks,” explained Kim Jin-Hwa, a representative at Korea Blockchain Industry Association.
At the same time, it appears Ethereum is not losing its popularity anytime soon. The currency has now surpassed the 100 million circulation mark, meaning there are now approximately 100 million ether tokens floating through exchanges and digital wallets alike. Unlike bitcoin – which has set its total market cap at roughly 21 million tokens – Ethereum has vowed never to put a cap on the amounts of tokens it will release. This has ultimately led to fears of inflation in the Ethereum community.
In addition, co-founder Vitalik Buterin announced in 2016 that the coin would never surpass 100 million, but his ideals changed when earlier this year, he introduced an alternate plan known as the Ethereum Improvement Proposal (EIP) and laid out guidelines for capping Ethereum at 120 million coins.
“To ensure the economic sustainability of the platform under the widest possibility of circumstances and the fact that issuing new coins to proof-of-work miners is no longer an effective way of promoting an egalitarian coin distribution or any other significant policy goal, I propose that we agree on a hard cap for the total quantity of ETH,” Vitalik exclaimed back in April. “I recommend setting [a maximum supply of 120 million], or exactly [twice] the amount of ETH sold in the original Ether sale.”
At press time, however, the proposal has not yet been accepted, and Ethereum bears no present cap.
In a related story, the town of Zug in Switzerland has announced that between June 25 and July 1, local elections will be held and citizens can cast their votes using the Ethereum blockchain. They will also be granted with Ethereum-based identifications.
The process is all part of a test to see how effective the blockchain system is. The citizens that use the platform will be questioned after they cast their votes regarding the ease of the technology to see if it should, in fact, be used again in the future.
Switzerland is one of the most crypto-friendly nations in Europe. The country employs a tax-free policy for all crypto-investors, and houses “Crypto Valley,” a region dedicated to blockchain and digital asset-based startups and companies.
Charts by TradingView
Looking to advertise? We will gladly help spread the word about your project, company, or service. CryptoMode produces high quality content for cryptocurrency companies. We have provided brand exposure for dozens of companies to date, and you can be one of them. All of our clients appreciate our value/pricing ratio. Contact us if you have any questions: [email protected]