I don't think it's possible to make sure that hacks don't happen, but it's not like exchanges don't work on their security. They're not interested in getting hacked, because it damages their reputation as well as deprives them of some profit, so I suppose they're doing their best. Perhaps these hacks don't happen that often, really. Is it possible to make a comparison with fiat bank robberies? I can't find the relevant info online, but I can see those multi-million robberies occur.
From a customer's standpoint, it's good to use an exchange like Binance which will provide full compensation even if the hack happens. And, of course, it's never a good idea to store money on an exchange anyway.
Topic: Two Exchanges in 2019 lost over $70,000,000 - page 2. (Read 310 times)
what do you think about exchange security? Do you think there is a certain standard for protection that all exchanges should have?
I believe all major exchanges follow a standard protocol. However, crypto exchanes are a very new industry and no benchmark has been set yet by any concerned authorities. The industry is growing at a rapid rate and new challenges are being surfaced every now and then! I am sure it will eventually come to a standard protocol but will take some more time to materialize!
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I think there needs to be a higher standard and hopefully, in 2020 we will see less of these hacks, that are actually avoidable.
I really hope so as well. But apart from cyber security, I think every exchange must start following the SAFU model of Binance. A certain percentage of fees must be kept separately to create an emergency fund which will come handy during such unfortunate time! This is called risk management and Binance has done really well there!
We don't see Coinbase getting hacked
Correction: We don't see Coinbase getting hacked yet.Every centralized exchange is at risk of being hacked. Individual Coinbase accounts have absolutely been hacked and drained many times. Coinbase themselves have been targeted in the past. The most notable attack (https://www.coindesk.com/coinbase-says-it-foiled-a-sophisticated-hacking-attack) revealed they have pretty poor security practices, with members of their staff opening links they had been emailed and downloading malware on to Coinbase's servers. They were very lucky to not lose funds. It's only a matter of time before they do.
The majority of exchanges have been hacked in the past, either for coins, customer data, or both. As I said, it's only a matter of time before the next attack, and only a matter of time before every exchange is hit. The only way to be safe is for the community at large to move away from centralized exchanges which hold your coins and demand KYC, and move to decentralized exchanges where you are in control of your own coins at all times, and there are no KYC requirements.
I not heard about Binance ever loss more than $70,000,000 in their exchange assets because right now Binance keep exist as market trading and investing until today, how ever if loss raise more than $70,000,000 I think will make some exchange market loss their asset and never exist until right now, with higher amount loss in market bad reputation for this exchange at the future.
Do you think there is a certain standard for protection that all exchanges should have?
If you set protection level standards (usually this is imposed by the law), this would mean that some of the companies will use just the minimum standards and that's it. Moreover, as they meet the obligatory industry measures, it would be pretty easy to just to stay with the minimum, get insured (as meeting the obligations as required by the law) and pay its users from the insurance, while overall safety standards usually will not be increased...as long as legislator would require.
Video Covering the hacks: https://www.youtube.com/watch?v=OAktOcT1Mrs
Binance and BITPoint lost over $70,000,000 in hot wallet hacks in 2019. Although the money will all likely be paid back to users, what do you think about exchange security? Do you think there is a certain standard for protection that all exchanges should have?
We don't see Coinbase getting hacked, so are exchanges just not being as careful?
I think there needs to be a higher standard and hopefully, in 2020 we will see less of these hacks, that are actually avoidable.
Binance and BITPoint lost over $70,000,000 in hot wallet hacks in 2019. Although the money will all likely be paid back to users, what do you think about exchange security? Do you think there is a certain standard for protection that all exchanges should have?
We don't see Coinbase getting hacked, so are exchanges just not being as careful?
I think there needs to be a higher standard and hopefully, in 2020 we will see less of these hacks, that are actually avoidable.
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