A good example why you shouldn't use close-source wallets is Coinomi.
Coinomi has been always a popular wallet and many people have used it, but it had a vulnerability sending users seed phrase to google servers.
Visit the following topic and see how that vulnerability caused a user to lose all his money.
WARNING - Coinomi Wallet CRITICAL Vulnerability Made Me Lose My Life Savings
Topic: Why I dont worry too much about using closed source wallet - page 2. (Read 270 times)
You are so naive.
By the time some body reports their funds are gone, yours may be gone as well.
If an app was maliciously made. The app developer could have coded it so they own access to all their customers coins. It is possible they do not even need a script or anything. Just have everyone's funds in the same wallet and transfer all at once.
Say this is not the case and it takes a while until they empty all wallets. You may be having a long poop and by the time you are done, everyone's funds are gone. You had two hours. But you do not pay attention to what happens in the Cryptocurrency space every single second of your life, do you.
Even worse. If they are selectively emptying wallets. Yours could be the first on the list.
Your post is exactly why you are going to be scammed one day.
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Regards,
PrivacyG
By the time some body reports their funds are gone, yours may be gone as well.
If an app was maliciously made. The app developer could have coded it so they own access to all their customers coins. It is possible they do not even need a script or anything. Just have everyone's funds in the same wallet and transfer all at once.
Say this is not the case and it takes a while until they empty all wallets. You may be having a long poop and by the time you are done, everyone's funds are gone. You had two hours. But you do not pay attention to what happens in the Cryptocurrency space every single second of your life, do you.
Even worse. If they are selectively emptying wallets. Yours could be the first on the list.
Your post is exactly why you are going to be scammed one day.
-
Regards,
PrivacyG
Is because the chances of getting hacked by the company or other is extremely low.
Assuming the company start to scam people and do something nasty. do you know how many trustwallet users are? 10 Million +.
You are right. Provided that the trustwallet is handled by CZ, however this does not guaranteed safety all the time. From the word itself its closed source means they still have an edge whatever goes wrong with their platform. Its not like Im saying they will ring any bells or what but always make cautious since its still a possible scenario for every big firms out there. Assuming the company start to scam people and do something nasty. do you know how many trustwallet users are? 10 Million +.
People quickly would report that their funds would dissapear and you would have enough time to transfer your funds to other wallet with your seed.
1 company cant empty 10 million wallets so fast.
What you say is untrue.1 company cant empty 10 million wallets so fast.
If they plan to scam their users, they would code an auto script to automatic do everything and with such bot, things will be done in a few seconds and minutes. You will have nearly zero chance to exit.
What you say is more relevant to attacks on blockchain which can be detected automatically by big exchanges which run their own nodes and after having detection, they can react to keep their funds safely. Example are reactions of Coinbase in Ethereum Classic attacks.
People were saying the same thing about FTX, Cryptsy, MtGox, and a whole lot of other centralized services too (which is what closed source wallets like TrustWallet are like). They were saying "they have been running for X number of days, have Y number of users and Z million dollars go through them; it is impossible for them to run away". The rest is history...
Besides it is not always about the company itself scamming its users, or not all its users (ie. selective scamming), but another risk is a third party hacked exploiting the backdoors in the closed source software that the company has placed in it (intentionally or unintentionally) and stealing your funds. Kind of like Windows where the risk is not only Microsoft hacking you but other hackers exploiting the backdoors Microsoft has placed in their product to hack you.
Besides it is not always about the company itself scamming its users, or not all its users (ie. selective scamming), but another risk is a third party hacked exploiting the backdoors in the closed source software that the company has placed in it (intentionally or unintentionally) and stealing your funds. Kind of like Windows where the risk is not only Microsoft hacking you but other hackers exploiting the backdoors Microsoft has placed in their product to hack you.
You seem to be so naive based on what you have just posted up there.
There are several reason close source wallets/service are not encouraged for use because as a user, you will be in the blind. A code could be planted in the source code, allowing the hacker to read your seed phrases and transfer funds out as soon as you make a deposit or even drain hundreds of thousands of addresses in just a second.
Welcome to the world of automation, don't think everything has to be done slowly and manually
There are several reason close source wallets/service are not encouraged for use because as a user, you will be in the blind. A code could be planted in the source code, allowing the hacker to read your seed phrases and transfer funds out as soon as you make a deposit or even drain hundreds of thousands of addresses in just a second.
Welcome to the world of automation, don't think everything has to be done slowly and manually
It other technology i dont believe they have easy access to millions of wallets because its using seed. They need to open seed every time to empty wallet.
That's naive assumption. They have created a fully fledged software wallet, they can create script or similar which automatically wipes out user funds in minutes.
The reason I dont worry too much of it and dont bother to put there.
Is because the chances of getting hacked by the company or other is extremely low.
Is because the chances of getting hacked by the company or other is extremely low.
Just do a google search about FTX, Luna, and MtGox and you will find your answer.
Assuming the company start to scam people and do something nasty. do you know how many trustwallet users are? 10 Million +.
People quickly would report that their funds would dissapear and you would have enough time to transfer your funds to other wallet with your seed.
1 company cant empty 10 million wallets so fast.
The block will be placed completely on their network and that simply means no one will be able to transact when they decide to scam. It only takes few seconds to place a block you won't have time to think too in such a situation.
It other technology i dont believe they have easy access to millions of wallets because its using seed. They need to open seed every time to empty wallet.
FTX access to funds are different i believe due to its web application technology.
The reason I dont worry too much of it and dont bother to put there.
Is because the chances of getting hacked by the company or other is extremely low.
Is because the chances of getting hacked by the company or other is extremely low.
Just do a google search about FTX, Luna, and MtGox and you will find your answer.
Assuming the company start to scam people and do something nasty. do you know how many trustwallet users are? 10 Million +.
People quickly would report that their funds would dissapear and you would have enough time to transfer your funds to other wallet with your seed.
1 company cant empty 10 million wallets so fast.
The block will be placed completely on their network and that simply means no one will be able to transact when they decide to scam. It only takes few seconds to place a block you won't have time to think too in such a situation.
The reason I dont worry too much of it and dont bother to put there.
Is because the chances of getting hacked by the company or other is extremely low.
Assuming the company start to scam people and do something nasty. do you know how many trustwallet users are? 10 Million +.
People quickly would report that their funds would dissapear and you would have enough time to transfer your funds to other wallet with your seed.
1 company cant empty 10 million wallets so fast.
Is because the chances of getting hacked by the company or other is extremely low.
Assuming the company start to scam people and do something nasty. do you know how many trustwallet users are? 10 Million +.
People quickly would report that their funds would dissapear and you would have enough time to transfer your funds to other wallet with your seed.
1 company cant empty 10 million wallets so fast.
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