No. Wrong. The price had dropped to $17 before the Mt.Gox incident.
The Bitcoin community faced another crisis on Sunday afternoon as the price of the currency on the most popular exchange, Mt.Gox, fell from $17 to pennies in a matter of minutes. Trading was quickly suspended and visitors to the home page were redirected to a statement blaming the crash on a compromised user account. Mt.Gox's Mark Karpeles said that the exchange would be taken offline to give administrators time to roll back the suspect transactions.
The extent of the compromise became clear when a copy of Mt.Gox's user database began circulating online. The file included username, email addres, and hashed password for thousands of Mt.Gox users. Karpeles's statement was updated to acknowledge the breach. He warned users who have re-used the Mt.Gox passwords on other sites to change them.
Link:
http://arstechnica.com/tech-policy/2011/06/bitcoin-price-plummets-on-compromised-exchange/You just backed up his claim.
fell from $17 to pennies
No, here is it w/more details:
The extent of the compromise became clear when a copy of Mt.Gox's user database began circulating online.
The fall in bitcoin value happened
after:
Mt. Gox Exchange Collapses Due To Compromised...
Sunday, June 19th, 2011. Gox, collapsed thanks to a hacked account. The unknown hacker(s) made an enormous sale of bitcoins from the compromised account, causing the price of the currency to fall from $17.5 to just pennies in a matter of minutes.
Hacked first, then the price fell later - very quickly.
Check out
June 20 through
June 25th values of bitcoin at Mt Gox market here:
http://bitcoincharts.com/charts/mtgoxUSD#czsg2011-05-01zeg2011-07-31ztgTzm1g10zm2g25zvIts empty.
I watched it happen in 2011. You are wrong. You're looking at the date the article was published, not the date the hack occured.
Order:
1. Priced topped around 32
2. Price fell to around 17
3. MtGox hacked
4. Price fell to 0.01ish based on forged account balances
5. Trading halted
6. Vulnerabilities fixed
7. Every trade that happened after step 2 was reversed
8. Trading resumed
Believe what you want. You're allowed to be wrong.