KuCoin, a somewhat popular cryptocurrency exchange headquartered in Singapore, experienced a major security breach last week that led to the loss of over $150 million worth of crypto tokens, including Bitcoin, Chainlink, Ethereum, and a plethora of altcoins.
Although this has yet to have any grave impacts on the crypto market, the selling patterns from the hacker – or group of hackers – has placed pressure on multiple smaller altcoins.
It now appears that they are looking to offload the Chainlink tokens that they stole from the platform, which could mean that it is about to witness some notable inflows of selling pressure.
It is important to note that in total, the hacker was only able to steal roughly $2 million worth of the token. Based on its current liquidity, analysts don’t think that this should have any major implications on LINK’s price action.
That being said, it may slow the rate at which it can ascend throughout the coming couple of days.
KuCoin Hacker Begins Transferring Stolen Chainlink
Due to the public nature of the hacker’s Ethereum wallet address, analysts can closely monitor all of the hacker’s transactional activity.
In total, they stole roughly $2 million worth of the cryptocurrency.
While speaking about this, one analyst pointed to the small LINK transactions as a sign that this will be the next token they dump.
“Hacker going for LINK next by the looks of it. Only got ~$2m of it. This guy is the most meticulous dumper I’ve ever seen. Test transactions, TWAPing, etc. 36hrs, 15m of 150m liquidated,” he explained.
Here’s What the $2m Sell-Side Pressure Could Do to LINK
Chainlink is now one of the largest and most liquid altcoins available to investors. As such, $2 million in selling pressure shouldn’t have too much of an impact on its price action, besides possibly sparking a short-term downtrend.
The aforementioned analyst also spoke about this, noting that any downwards price movements that LINK sees in the near-term are more than likely just related to general market movements.
“KuCoin hacker is liquidating his LINK. Nothing to be concerned about given links liquidity. Any price movements are most likely more in tandem with the general market and little to do with this.”
A sudden influx of sell orders may create some short-term pressure that pushes Chainlink lower, but it shouldn’t alter its mid-term trend.
Featured image from Unsplash. Pricing data from TradingView.