Many Nano (NANO) coin holders are still in shock after the BitGrail hack and the saga has already gone to court. The Nano developer team is being accused of violating US law on securities. The law suit states that the platform is accused of giving false information on BitGrail reliability and selling securities that are not registered.
A total of 17million Nano was equivalent to $187million at the time of the hack was stolen. According to the court filings and the complainants wants the blockchain to be compelled to come up with a “fork” to redeem the investor funds. A new cryptocurrency to compensate users would be a fair deal.
The Future of Cryptocurrency
The question is, will this weaken the Nano (NANO) coin or make it more valuable? Was the hack planned by a section of the Nano community or the developer team hand a hand in it? Well, whichever way it goes, it will shed light on future of cryptocurrency regulation and authenticity of digital coin exchanges.
The Chinese ban seems to have smelled what is hidden behind trades that are not regulated and could turn out to be a god move. Nano Foundation on its part is supporting their NANO holders while BitGril is blaming the Nano developer team.
If there are regulations governing blockchain platforms and Exchanges, the issue could not have end up in the courts. Most players in the digital money markets are not insured thus making the business risky than investors think.
How Secure are Nano (NANO) Digital Assets?
After the February 9th BitGril hack, questions are being asked whether your online NANO currency is secure. It is not clear whether there was an under hand requested to edit the ledger to sweep the traces under the carpet or not. However, reports indicate that the BitGrail owner, Francesco Firano contacted Nano developers to alter the ledger and cover up the missing 17million NANO.
The lapse during tea hack is a clear indication how investors funds security can easily be compromised. With most of the funds not insured, hackers know the weak blockchain points. With thousands of investors affected, the focus will now shift to the two players; Nano (NANO) and BitGril.
Nano (NANO) Price and BitGril Hack
The hack seems to have had a negative impact on NANO price; the coin shed some gains registered end of January and dropped by almost 50% to trade at $9.88 on February 8th. The price has been on a rollercoaster ride and dropped further to the current $5.91 with a slight gain boost of 17.07% against the dollar.
With more than $1million earmarked for legal representation from the Nano Foundation. Cryptocurrency analysts are warning there might be further drop in the NANO price and the investor should brace for harder times ahead. It will take a while to restore the investor confidence for the coin to stabilize.
However, the Nano Foundation statement indicates otherwise; the funds will be set aside to help those hack victims who cannot afford representation against Italian outfit, BitGril. This works tow way; a marketing gimmick to show all is well and a chance to restore the eroding Nano past glory.
Future of Cryptocurrencies and Exchanges-Nano Lesson
Going by what transpired between Nano and BitGril, one thing is for sure; there is need to set out clear guidelines on rules of engagement. Investor asset protection is paramount if the cryptocurrency market is to remain relevant in the future. Perhaps some stringent checks and balances need to be put in place to restore confidence in the industry.
All stake holders need to be protected to avoid hacks in the guise of forking. It will take a while before Nano (NANO) gains back its value and consumer confidence and this is not good for future investment. Integrity might have been put to test but we are yet to know how the hack happened.