An Urgent Call For Improved Security Measures
Yesterday, Chris Larsen, the co-founder of Ripple, experienced a high-profile security breach of his personal XRP holdings. After the incident, many crypto community members have called for swift action and a reassessment of security protocols.
Scrapping initial rumors surrounding the incident, Larsen emphasized the isolated nature of the breach, underlining the historically secure status of Ripple wallets.
Ex-Ripple Lead Engineer Offers Insights Over Security Challenges
However, the breach prompted industry-wide introspection, with former Ripple director of engineering Nik Bougalis offering invaluable insights into cryptocurrency holders’ security challenges. Bougalis stressed the critical importance of effective key management and security practices, highlighting the limitations of existing tools in addressing these complexities.
Bougalis opined that Larsen’s ordeal could have been mitigated by implementing multisigning or a custody service. This service is a security feature requiring multiple transaction signatures and provides an additional layer of protection against hacks.
While not foolproof, it significantly raises the security threshold, according to Bougalis. Meanwhile, law enforcement agents have informed Larsen that about 213 million XRP, equivalent to $112.5 million of his funds, has been frozen.
The frozen assets represent a crucial step towards mitigating the breach’s impact and potentially recovering the stolen funds. With the stakes higher than ever, stakeholders must remain vigilant and proactive in safeguarding their digital assets in an increasingly digital world.
XRP Whales Dump 53 Million Tokens
Meanwhile, the XRP market witnessed a significant sell-off today, with two whale traders offloading a combined 53 million XRP tokens, leading to a drop in the token’s price below the crucial $0.50 support level. The on-chain data indicates that nearly $26 million worth of XRP tokens were shifted to Bitstamp and Bitso, exacerbating the ongoing bearish sentiment surrounding Ripple’s native cryptocurrency.
According to analytics from Whale Alert, an on-chain data tracking platform, one of the XRP holders executed a sell-off of nearly 30 million XRP tokens valued at around $15 million to Bitstamp, a prominent crypto exchange headquartered in Luxembourg. Simultaneously, another transaction involving 23.8 million XRP tokens worth about $12 million occurred, with the tokens transferred to Bitso through an undisclosed wallet.
This concerted effort by whale traders has further intensified concerns about XRP’s market stability and future trajectory.
At the time of writing, XRP’s price is down 2.40% to $0.494 and could drop below $0.49 should this bearish trend continue. Furthermore, trading volume for XRP has dropped by 27.55% to $1.33 billion in the past 24 hours, underscoring waning investor interest in the cryptocurrency.
The prolonged downtrend in XRP’s price has raised concerns among investors and analysts, with the cryptocurrency shedding over 20% of its value in the last 30 days alone. Technical indicators further confirm the bearish sentiment, with the TradingView moving averages indicating a ‘Strong Sell’ signal for XRP today. Furthermore, XRP’s price is trading below key moving averages, indicating a pessimistic outlook over the short and long term.