There is a saying that there is no such thing as a bad advertisement and all advertisement is good advertisement. Changpeng Zhao, the CEO of Binance, the largest exchange in the world probably does not believe in that statement anymore. Binance’s CEO came under heavy fire and criticism after he tweeted out an advice for Cryptocurrency holders.
The tweet advised Crypto holders to store their holdings in big exchanges as opposed to personal storage devices like USB or hardware wallets. He implied that there is a greater risk involved with personal storage and “reputable” exchanges are the correct answer.
Store coins yourself. You fight hackers yourself, and guard from losing wallet yourself. Computer breaks, USBs gets lost.
Store on an exchange. Only use the most reputable, proven secure, exchanges.
Or move to DEX, disrupt ourselves. https://t.co/Ci4ux9I3VD
— CZ Binance (@cz_binance) January 15, 2019
The tweet itself quickly became a meme and came under immense criticism from all fronts. This was mainly due to the fact that the tweet was actually posted as a response to the news of Cryptopia being hacked. The New-Zealand-based Crypto exchange was just recently hacked and it lost at least $2.44 million worth of Ethereum (ETH) and at least $1.18 million worth of Centrality (CENNZ). The amount was transferred to several unknown wallets and laundered.
Changpeng Zhao was under fire for his Tweet
At the moment, there is no additional information for the attackers, but the fact that Changpeng Zhao used this as a reference to the security of Crypto exchanges became a meme in itself. A lot of the comments were pointing out that he will eat his words when Binance eventually gets hacked. Some people even went as far as to accuse Zhao of being a scammer. WhalePanda tweeted out:
There's always a way an exchange could get compromised. If you're 100% confident you're a scammer.
— WhalePanda (@WhalePanda) January 15, 2019
Of course huge attacks like the one on Mt Gox back in 2014 are not something which is often seen. Despite that, attacks from that scale tend to happen and when they do they become a huge block in Cryptocurrency’s long and hard road to adoption and stability.
Most of the experienced people in the Crypto community are fully aware that there is no such thing as a completely secure Crypto exchange. Some of them even believe that it’s only a matter of time before Binance itself gets hacked.
Of course a lot of experts note the fact that Binance still does not officially have an insurance mechanism. At the moment, if the exchange indeed gets hacked, there is absolutely no coverage for users. And if Binance does indeed get hacked, the results could be devastating. Binance plans to assure users of Crypto exchanges’ reliability, it must provide coverage and security for its own clients first.
- Binance is crushing the competition! Where is Coinbase?
- The Huobi Crypto Derivatives market reached more than $21 billion in trading
- Binance Labs is investing in a US Over-the-Counter (OTC) trading desk
- Binance has the biggest stablecoin trading community, according to the Tether Richlist
Know more than others on any Blockchain Party!
Join more than 5000 others to receive the breaking news and weekly summaries! No ICO spam, we promise.