June 2018 will be remembered as one of the most consequential months in cryptocurrency history. Two events dominated headlines: the launch of the EOS blockchain mainnet following a record-breaking $4 billion initial coin offering, and the devastating hack of Bithumb, South Korea’s largest cryptocurrency exchange, which saw approximately $31 million in digital tokens stolen. Together, these stories captured the dual nature of the crypto industry in 2018 — boundless ambition tempered by persistent security failures.
TL;DR
- EOS mainnet launched in early June 2018 after the largest ICO in history, raising $4 billion
- EOS price stood at $8.13 on June 30, down significantly from its May 2018 all-time high of $23
- Block producers froze 34 accounts shortly after the mainnet went live
- Bithumb exchange lost approximately 35 billion won (~$31 million) to hackers on June 19-20
- Both EOS and Tron migrated away from Ethereum in June 2018, sparking debate about blockchain competition
The $4 Billion Bet on EOS
Block.one’s EOS token sale was unlike anything the cryptocurrency industry had ever seen. Launched in June 2017, the year-long initial coin offering raised a staggering $4 billion by the time it concluded in June 2018 — making it the largest ICO in history by a wide margin. The figure dwarfed traditional venture capital rounds and even many public offerings, underscoring the extraordinary capital flowing into blockchain projects at the peak of crypto mania.
The EOS mainnet officially went live in early June 2018, with 21 block producers elected by token holders to maintain the network. The launch was positioned as a direct challenge to Ethereum, promising dramatically higher transaction throughput, zero fees for users, and a developer-friendly architecture built for decentralized applications at scale.
However, the transition was anything but smooth. Within days of the mainnet launch, EOS block producers voted to freeze 34 accounts, citing suspicious activity. The move drew immediate criticism from decentralization advocates who argued that a small group of elected producers should not have the power to unilaterally freeze accounts — a tension that would define governance debates across the blockchain industry for years to come.
Price Action Tells a Different Story
Despite the hype surrounding the mainnet launch, EOS price action told a story of faded momentum. The token had reached an all-time high of approximately $23 in May 2018 as anticipation built toward the mainnet launch. By June 30, EOS was trading at just $8.13 — a decline of nearly 65% from its peak in barely a month.
The decline was partly reflective of the broader market selloff that dragged Bitcoin from $6,000 range down to a 2018 low and pushed the total crypto market capitalization to approximately $232.5 billion. But it also reflected growing skepticism about whether EOS could deliver on its ambitious promises and whether the centralized block producer model represented a genuine improvement over existing blockchain architectures.
On June 30, EOS posted a strong recovery alongside the broader market, surging 10.5% to $8.13 according to Kraken data. The token maintained its position as the fifth-largest cryptocurrency by market capitalization at $7.3 billion, and 24-hour trading volume reached $832 million across all exchanges.
The Great Migration From Ethereum
June 2018 also witnessed what developers called a tale of two migrations. Both EOS and Tron, two of the most prominent ERC-20 tokens on the Ethereum blockchain, completed their transitions to independent networks during the month. The simultaneous departure of two major projects represented a significant moment for Ethereum, which was already grappling with scaling challenges and network congestion.
For Ethereum proponents, the migrations were a natural evolution — proof that the Ethereum platform had successfully incubated projects that outgrew it. For critics, they were an indictment of Ethereum’s limitations and a warning sign for the broader ecosystem. The debate would continue for years, but June 2018 marked the moment it moved from theoretical to very real.
Bithumb: The Hack That Rocked South Korea
On June 19, 2018, Bithumb — then South Korea’s largest cryptocurrency exchange by trading volume — announced that it had been hacked. Approximately 35 billion Korean won, equivalent to roughly $31 million in digital tokens, had been stolen by attackers who exploited vulnerabilities in the exchange’s security infrastructure.
The exchange initially disclosed the breach through a tweet that was later deleted, stating that the stolen funds amounted to 35 billion won. While Bithumb moved quickly to suspend deposits and withdrawals and promised to reimburse affected users, the incident sent shockwaves through an already fragile market.
The Bithumb hack was the second major South Korean exchange breach in quick succession, coming on the heels of the Coinrail hack earlier in June. The back-to-back incidents highlighted the persistent security vulnerabilities of centralized exchanges and fueled ongoing debates about self-custody, regulation, and the fundamental trade-offs between convenience and security in cryptocurrency trading.
Broader Market Context
The events of June 2018 unfolded against a backdrop of broader macroeconomic and regulatory pressures. China’s share of global Bitcoin trading had plummeted from over 90% in September 2017 to less than 1% by June 2018, the result of Beijing’s aggressive crackdown on cryptocurrency exchanges and ICOs. The dramatic contraction of Chinese trading volume represented one of the most significant structural shifts in Bitcoin’s young history.
In the United States, regulatory uncertainty continued to weigh on the market. The SEC had been steadily increasing its scrutiny of cryptocurrency projects, and the lack of clear regulatory frameworks left both investors and projects in a state of limbo. Against this uncertain landscape, the EOS launch and Bithumb hack served as powerful reminders that the cryptocurrency industry was still very much in its formative stages.
Why This Matters
The events of June 2018 set the stage for debates that continue to shape the cryptocurrency industry. EOS’s ambitious mainnet launch and subsequent governance controversies established templates for how blockchain communities would grapple with decentralization, accountability, and power. The Bithumb hack reinforced the critical importance of exchange security and self-custody, lessons that would be repeated — painfully — in the years that followed.
For investors, the month was a masterclass in crypto volatility. EOS’s 65% decline from its all-time high, the market’s dramatic June 30 recovery, and the persistent security threats created an environment where fortunes could be made or lost in hours. As the first half of 2018 came to a close, the cryptocurrency industry was smaller, humbler, and arguably wiser than it had been at the start of the year — but still brimming with the potential that had attracted millions of participants in the first place.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.
bithumb hack shaking confidence right when eos launched was terrible luck for the project
the contrast between eos hype and reality became apparent almost immediately after launch
4 billion dollar ico and then block.one basically did nothing with it. the greatest cash grab in crypto history
eos mainnet going live was supposed to be triumphant but the bithumb news killed momentum
bithumb hack stealing the EOS launch spotlight. june 2018 was peak crypto chaos on multiple fronts simultaneously
4 billion ico for eos and then the mainnet launches during a bithumb hack – what timing