Finally, Bithumb users have been served with good news. South Korea’s biggest crypto exchange as of May,has announced that it is officially resuming deposits and withdrawals on August 4 at 11 am Korea Time, a month after of freezing the platform due to the hack.
Bithumb to resume deposits and Withdrawals for 10 coins
The official blog post, which the company used to make this announcement, said that Bithumb will resume the deposits and withdrawals for only 10 cryptos in this round. These would be Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Ethereum Classic (ETC), Qtum (QTUM), Litecoin(LTC), Bitcoin Cash (BCH), Monero (XMR), Zcash (ZEC), and Mithrill (MITH). The exchange will resume these services for Tron (TRON) and EOS (EOS) after their mainnet implementation is completed.
[Re-open deposit and withdrawal services]
■ Timeline for the first round deposit and withdrawal services
: 4 Aug, 2018 11 AM[KST]
■ List of cryptocurrencies (10 in total)
: BTC, ETH, XRP, ETC, QTUM, LTC, BCH, XMR, ZEC, MITH
— Bithumb (@BithumbOfficial) August 3, 2018
The announcement also said that the exchange has changed all deposit addresses and all uncredited deposits that had been made when the services were halted, will be returned for these 10 coins.
As the prices of certain currencies are very divergent between Bithumb market and standard market, the exchange in the interest of its customers has taken this step.
To quote from the official blog
“However, some cryptocurrencies with a significant price difference of about 10% between Bithumb market and the standard market will be opted out in this round in view of protecting our customer’s asset. Since when the services return to normal, rapid change in market prices are expected. Therefore, resuming normal services for such cryptocurrencies will be put on hold for the time being,”
Bithumb may lose leadership status even after resuming functionality
Bithumb has failed to start deposits and withdrawals for over a month since its security breach in early June. This drove up the premium on its platform for certain cryptocurrencies due to a lack of liquidity preventing it to start deposits and withdrawals for only 10 coins. Also, apart from this, the exchange ceased creating real-name virtual accounts due to its failure to renew a contract with NongHyup Bank. The lender recently decided to suspend the accounts contract with Bithumb amid mounting concerns about its poor security systems as the exchange lost an estimated 35 billion won ($31.5 million) worth of virtual coins to cybercriminals in June. Although Bithumb said existing virtual account holders can “use deposit and withdrawal services as usual,” but if it fails to renew the contract with NongHyup, the lender may stop all services for the crypto exchange.
Fist being hit by a hack, and now with banking relationship in trouble, problems don’t seem to be ending for the exchange even though the team is trying its best. This will surely cost Bithumb its leadership status among crypto exchanges in South Korea and around the world
Will Bithumb come back strong and reclaim its lost status? Do let us know your views on the same.
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.