BitStamp temporarily stopped withdrawals and tried to stop customers from making deposits early this week after the price of bitcoin dropped considerably this last weekend. The company claimed that about $5 million (roughly 19,000 bitcoin) was lost after a “security lapse”.
According to their website, the security lapse in their operational wallet happened on January 4th and the company has since claimed that since they only maintain a small portion of their customers’ bitcoins on their online systems, their customers shouldn’t be worried – their offline reserves should cover the “loss”.
Some skeptics are claiming that this event was just a cover to hide the fact that bitcoin isn’t doing well anyway. The price of bitcoin dropped from $300 to around $250 on Sunday and this could be a sign of worrisome times.
However, before you completely write them off, consider the fact that bitcoin has only been available since 2009 and there are always challenges building infrastructure when companies come up with new products and technologies.
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