22.09.202108:09 Forex Analysis & Reviews: Pnetwork protocol gets hacked; Cryptocurrency market is down

The cryptocurrency market sank following the stock market, and so far, no one is going to make up for the losses. A lot of people attribute the sharp trading floors decline to the news that China's property giant Evergrande accumulated a debt of 2 trillion yuan ($309bn) and may soon default and go bankrupt. It was rumored that Tether Limited had securities of this company as collateral for its debt. However, they were later refuted. Tether Limited has confirmed the absence of Evergrande securities as collateral for the USDT stablecoin. "Tether does not hold any commercial paper or other debt or securities issued by Evergrande and has never done so," the company said. "The vast majority of the commercial paper held by Tether is in A-2 and above rated issuers."

According to Bloomberg, Evergrande has $669m in coupon payments due by the end of this year. The clock is also ticking for developer to raise cash and pay back $7.4 billion of bonds coming due next year. So far the Chinese authorities have been in no hurry to get involved in the problems of this developer. This sparked rumors about Lehman Brothers, which was liquidated by the US authorities during the global financial crisis.

Another hack was announced today, spoiling the mood not only of business owners but also of market participants. Pnetwork announced it was hacked yesterday, losing 277 pbtc on Binance Smart Chain. The protocol acknowledged that the attacker was able to leverage a bug in its codebase to gain control of the assets. Currently, contracts are working in the usual mode. Pnetwork also would run "extra security measures in place for the first few days." As a reminder, the protocol eases mobility of assets like bitcoin and ether among several chains. This contributes to extending the liquidity of each decentralized finance environment. The company has already offered a $1.5m bounty to the attacker on return of the stolen fund. "Finding vulnerabilities is part of the game, unfortunately, but we all want the defi ecosystem to continue growing, returning funds is a step in that direction," it stated.

It is possible that this could happen. There have already been such precedents. Nearly all of the $600 million stolen from Poly Network's users in one of the biggest cryptocurrency heists ever has been returned. The hacker that drained 864.8 ETH from a MISO auction also returned the funds to the original token contract.

As for cryptocurrencies, if bitcoin fixes below the level of $42,580, it is likely to drop lower to $37,300 and then to $33,800. The main task for the bears now will be to prevent BTC from going back to $45,900, where the 200-day moving average passes. If traders manage to defend this level, and tomorrow's Federal Reserve meeting and the expected US stock market plunge will help this, a downward correction in the cryptocurrency can be expected. If demand for bitcoin recovers, a breakout above $45,900 would allow prices to rise to the highs of $50,400 and $54,400.

In terms of Ethereum, breaking the $3,000 level is not the most needed experience for buyers right now. If the cryptocurrency does not return above this range soon, it is likely to hit a low of $2,700 and even $2,400. A consolidation around $3,000 will leave hopes of a rebound to $3,330 and $3,700.