Does Cryptopia’s Failure Show Decentralized Exchanges are Crypto’s Future?

New Zealand exchange Cryptopia has gone into liquidation. Yesterday, rumors of another hack were circulating after users were unable to access the website. However, this morning, an announcement made on their Twitter account declared the company had ceased trading. Taking this into account, is now the time to start using decentralized exchanges?

Legendary Investor Flips Bullish on Bitcoin, Saying It’s “Alive and Well”
Thursday May 16, 2019

It’s no secret that mainstream financial experts are seldomly big fans of cryptocurrency, and they are often one of the primary groups that vocalizes that largest amount of qualms with the nascent technologies. One...

The post Legendary Investor Flips Bullish on Bitcoin, Saying It’s “Alive and Well” appeared first on 12bitplay - Bitcoin Play.

Cryptopia Limited appoints Grant Thornton as Liquidators – https://t.co/A35rq1Jls3
— Cryptopia Exchange (@Cryptopia_NZ) May 15, 2019

Despite Plummeting Towards $7,000, Bitcoin’s Rally May Not Be Finished Just Yet
Saturday May 18, 2019

The crypto markets incurred a significant amount of selling pressure late-yesterday that sent them reeling downwards, surrendering a decent portion of the recent gains they have incurred as a result of the massive rally...

The post Despite Plummeting Towards $7,000, Bitcoin’s Rally May Not Be Finished Just Yet appeared first on 12bitplay - Bitcoin Play.

Cryptopia Has Closed For Good
Launched in 2014, with amongst the lowest fees (0.2% per trade) in the industry, Cryptopia carved out a reputation for being a no-frills exchange that was willing to list relatively unknown coins.

Bitcoin (BTC) Price Targets Additional Gains: Dips Remain Supported
Monday May 20, 2019

Bitcoin price started a fresh increase after forming a support base above $6,900 against the US Dollar. The price gained bullish momentum above $7,400 and settled above the key $7,650 pivot level. There is...

The post Bitcoin (BTC) Price Targets Additional Gains: Dips Remain Supported appeared first on 12bitplay - Bitcoin Play.

They enjoyed relative success. But things took a turn for the worst late last year when trading volumes plummeted. In the weeks before today’s announcement, daily volumes were typically around $200k. In the current climate, this would place Cryptopia within the top 40 exchanges.
Sadly, in what is another blow for the crypto industry in general, as of today, trading on Cryptopia has been suspended.

Cryptopia joins the sad list of dead exchanges. In 5 years I've watched over 10 exchanges shutdown yet you still leave funds on their sites? Heres a small list: Cryptsy, mtgox, cryptorush, mintpal, cavirtex, vaultofsatoshi, quadriga, coinedup, vircurex, coinedup, cryptopia.
— Needacoin (@needacoin) May 15, 2019

The Cryptopia Hack Highlights Incompetence
At the start of 2019, hackers stole $16 million from Cryptopia. There were reports that staff struggled to control the breach, meaning hackers were able to sustain their attack for a further two weeks following the initial incident.
Moreso, almost halfway into the year, normality has still not returned. With some users taking to social media to voice their displeasure at this. And rightly so, as this time frame is unacceptable for any online business, let alone a crypto exchange.

@Cryptopia_NZ It's been almost 5 months now since the #CryptopiaHack & we are still awaiting for our funds. Unable to withdraw, trade or use our funds since 5 months in a bear market. I hope you understand what it means for all of your users? I really hope to see some +ve action!
— Crypto babushka (@Cryptobabushka) May 8, 2019

The liquidators, Grant Thornton, have released a statement saying the company has failed to recover from January’s attack. They go on to say that the investigation could last for several months, due to the complexity involved:
“The highly publicised hack of Cryptopia’s exchange in January 2019 had a severe impact on the company’s trade. Despite the efforts of management to reduce cost and return the business to profitability, it was decided the appointment of liquidators was in the best interests of customers, staff and other stakeholders.”
Decentralized Exchanges Are The Future
Undoubtedly, the scale of incompetence surrounding Cryptopia will filter out over the coming months. But for now, given concerns over security, investor attention is turning towards decentralized exchanges.
Not only are they inherently more secure, as a centralized wallet cannot be targetted. But given the escalation of privacy encroachment, through KYC and AML regulation, decentralized exchanges offer an alternative that is more aligned with cryptocurrency ideology.
In recent times, development into their usability has taken priority. Kirill Shilov, CEO of Geek Forge, said:
“Two years ago, using a decentralized exchange (DEX) was a lot of trouble and people were losing their funds after making small mistakes like typing in the wrong address, but nowadays these platforms have become much more user-friendly than you’d expect.
And this trend has been noticed by the industry’s big players. Towards the end of April, Binance announced the launch of Binance DEX. Binance CEO, Changpeng Zhao reiterated the benefits of a decentralized system by saying:
“We believe decentralized exchanges bring new hope and new possibilities, offering a trustless and transparent financial system. With no central custody of funds, Binance DEX offers far more control over your own assets. We hope this brings a new level of freedom to our community. We will work closely with projects and teams to grow the entire ecosystem.”
And with that in mind, there is little excuse not to make the switch.

CZ thought binance was immune to hacks. Every exchnge is prone to hacking, there is no denying that. Now people are afraid to keep the funds in CEXs. They started to look for non-custodial, fast, secure, with high liquidity/volume, decentralized exchnages @nashsocial $NEX #DEX
— CryptoFox® (@cryptoofox) May 10, 2019

The post Does Cryptopia’s Failure Show Decentralized Exchanges are Crypto’s Future? appeared first on NewsBTC.

You may also like...