Cryptocurrency

The IOTA debacle: Trinity-Wallet is hacked, leadership divided – IOTA crashes in the descent

A vulnerability in the official Trinity-Wallet led to the IOTA-theft of a value of millions of dollars. Although the IOTA Foundation has taken several steps to prevent a further attack, crashed the crypto-currency after the Hack to about 12 percent.

Trinity-Wallet compromised

12. February, the IOTA Foundation has released a statement, according to the official Trinity-Wallet a “suspicious Situation” under search. The Foundation advises users to open the Wallet until further notice, or to use.
After having confirmed the Hack, it was off to the Coordinator – a System that controls, valid transactions.
To this end, the IOTA Foundation:

“After an initial investigation, we have decided to make the Coordinator to ensure that no further theft can take place until we have found out the cause of these thefts.”

After an in-depth transaction analysis, the Foundation is of the view that the Problem with Seed-theft related, although the cause has not yet been found. So far, ten victims, with a total estimated loss of IOTA to the value of $ 1.6 million were identified.
Now several cyber-forensic experts have joined the investigation team, in order to assess various possible causes and a deep scan of all the dependencies of the Trinity to carry out. In addition, the IOTA Foundation stresses that it will cooperate with the law enforcement authorities to investigate the coordinated attack more.
Although still not known what could have caused the Trinity-Exploit, not waited many investors with the sale of your Coins. The IOTA-price came to pass that in the fall flight, as the “suspect Situation”, for the first time at 12. February, it was reported. Now, it seems, could prepare themselves for the crypto-currency to a recovery.

IOTA technical analysis

The TD sequence indicator could predict that IOTA on 12. February will make a correction. This technical Index has issued a sell-signal in the Form of nine green candles on the 4 hour Chart. Following the decline in the Formation of the crypto-currency plunged by 12 percent – from a High of 0,353 $ on a Low in 0,310 $.
In spite of the crash and the extent of the Trinity-Wallet-Hacks IOTA seems to be an upturn. The sequential TD-indicator has recently given a buy signal in the Form of a red nine candle within the same time frame.
A tip of the buying pressure behind IOTA could confirm the bullish Signal and the Coin on 0,336 or 0,344 Dollar increase.
Nevertheless, a further increase in the sell orders could make the buy-signal, which is presented by the TD sequence indicator invalid.
A break below the recent Low of $0,310 could set the stage for a steeper correction. On the way to the bottom of IOTA could find support at $0,296 and $0,284.

On the way to the top

During the IOTA Foundation investigated what could have led to the Trinity vulnerability, it is worth noting that the Ecosystem will not be confronted for the first Time with security problems.
By the end of 2017, several users had reported instability at the official IOTA-Wallet and the fact that Tokens are lost or incorrect addresses have been sent. Beginning in 2019, a British Hacker was arrested because he had stolen IOTA to the value of about $ 11 million.
According to the Tone Vays, a former Wall Street Trader and VP at JP Morgan Chase, it could come as a result of the high centralization degree, of the IOTA Protocol, probably also in the future to such incidents. Only time will show, whether the Foundation is able to achieve progress in improving the security of your network and your Wallets.
IOTA, currently ranked 23, the market capitalisation, has fallen in the last 24 hours by 0.91%. MIOTA has a market capitalization of 897,02 million dollars in a 24-hours-a volume of 32,27 millions of dollars.

About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.

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