Many of you who came after the Mt. Gox0 incident in 2014 may not know what happened. Let's review this incident, which has had a profound impact on the cryptocurrency market.
1. Market trust crisis
Mt. Gox was once the world's largest Bitcoin exchange, handling about 70% of the world's Bitcoin trading volume.
In 2014, the exchange announced that 850,000 Bitcoins were lost (750,000 of which belonged to customers) due to a hacker attack. This incident triggered widespread market panic and distrust, causing Bitcoin prices to plummet.
2. Strengthened supervision
After the incident, governments began to pay attention to the regulation of the cryptocurrency market. Many countries began to formulate or strengthen cryptocurrency-related laws and regulations to improve the transparency and security of exchanges.
For example, the U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) have gradually increased their regulatory measures on cryptocurrency exchanges.
3. Improved security measures
Exchanges and users have higher requirements for security. The incident prompted exchanges to strengthen security measures, including multi-signature technology, cold wallet storage, and regular security audits.
Users also pay more attention to the security of their assets, and more people begin to use offline storage methods such as hardware wallets.
4. Market reshuffle
The Mentougou incident caused some small exchanges that did not have good security measures to be eliminated from the market, while some exchanges with higher security standards and better reputations stood out, such as Coinbase, Binance, etc.
These exchanges further promoted the maturity and standardization of the market.
