Keeping your money in cryptocurrency tends to be a little more risky than storing it in a bank or in cash under your mattress. It is true even if you are invested in a relatively safer cryptography investment, as Ethereum (Eth 2.57%))Not to mention the small projects hosted on his channel.
When there is an unexpected problem in the crypto which would not occur in the traditional financial sector, it can sometimes be an opportunity to buy the decline, assuming that the problem will not be permanent.
Would this be the case for Ethereum today? This is very possible, so let’s examine the latest events and put them in the context of the long -term case to buy the medal.
It may be the greatest cryptographic crime of all time
Since the price of Ethereum has been down 8% since February 20 and 10% in the past three years, it is argued that the current drop in the medal is more than temporary. But the decline since the 20th is due to a particular cause: a hacking of the cryptocurrency exchange parbit, which occurred on the 21st. It is the decline that could be worthy of buying for the right investor.
According to representatives of the Stock Exchange, approximately $ 1.4 billion in funds were drained from its portfolios, which mainly held Ethereum and some derivatives of it. It is not clear if the funds can or will be recovered, although the Byber has already restored most of its reserves so that it can continue to operate as an exchange. Based on the evidence available, the Crypto Cybersecurity Arkham Intelligence group has identified an organization of North Korean pirates called the Lazare group as the authors, using sophisticated software hacking on a digital portfolio service.
Does all this affect the investment thesis to buy and hold Ethereum? In other words, does this hack make it more likely that to move forward in the long term, investors will be less likely to invest in decentralized financial projects (DEFI) of the chain, the pieces of artificial intelligence and other projects?
No, this is not the case, although it is very reasonable to wait at least a little short -term hesitation of investors when it comes to buying the medal. The exchanges of cryptocurrencies are hacked and descend into the flames quite frequently, and the scams and other fraudulent activities are common. This did not prevent the sector from growing over time, and it has not inflicted permanent damage to the chains where the most attached benefits landed in the past.
Thus, the second largest cryptocurrency will probably not be eliminated from its position as soon as possible, even after having known the greatest theft episode in industry history. This means that the current decline is more likely to be an opportunity to buy than a long-time sign of difficult time to come.
Take note of the circulation of stolen money
There is an additional wrinkle of posting of tickets that deserves to be noted.
According to the Wublockchain analysis group, the funds stolen in the bybit hacking were largely laundered by puncturing them towards another channel, Solara (GROUND 4.95%))where they were then used as a fodder to launch pieces of memes. Then, a large collection of portfolios associated with pirates was able to buy most of the offer of these parts even after their launch, then sell them to finish the laundering process. Why is it the favorite way for the authors to escape?
In short, it is most likely something that indicates the reason why Solana is a better candidate to buy on the drop than Ethereum. Its price is down 15% from the hack, largely following a weakness (probably temporary) throughout the cryptography sector.
When the pirates wanted to escape with as much of their poorly acquired products as possible, they were encouraged to do so in a way that is both fast and cheap. Compared to Ethereum, Solana gas costs are considerably lower and its transaction times are much faster. When you work with several portfolios, such as hackers, and when they need to make a lot of separate transfers, such as hackers, these differences add up to be financially significant.
Here is the thing: these same differences between the channels are significant for everyone, including investors, traders and blockchain developers. It is never more practical to pay more money to make transactions and wait longer for your actions to be confirmed on the channel. This is a large part of the reason why Solana wins against Ethereum in emerging segments such as infrastructure for AI agents, and why he could potentially continue to eat his lunch for years to come.
So if you thought you were buying the dip with Ethereum, it’s not a bad idea to do it. An even tasty idea is to buy the Solana dip. Prepare to hold your new tokens through thick and thin for a few years, in the unlikely case that the drop in prices lasts so long.
