What caused yesterday’s sell off?

Cryptocurrencies fell pretty sharp on Wednesday after rallying strongly over the last few days.

Mati Greenspan, an analyst over at eToro, says the decline appears to have been driven by the security breach on MyEtherWallet.com.

“A few of Google’s servers fell yesterday causing a disruption in Internet service in some parts of the world,” Greenspan said in an email on Wednesday. “This is not all that uncommon and the incident is still being investigated. The bigger issue is that it seems some hackers managed to exploit the downtime to hijack MyEtherWallet.com (MEW)

“MEW is the main website that many crypto enthusiasts use to store their Ethereum and Ethereum based tokens, so this is kind of a big deal. Some people who tried to access the website at that time were redirected to a lookalike phishing site that then gathered their login information (private keys) and emptied their wallets.”

It’s reported that a total of 216 Ethereum coins were stolen, estimated to be worth $135,864. Although the loss is not as big as they have been, the fact that hackers were able to breach MyEtherWallet.com and steal the tokens dented investor sentiment.

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