Groundhog day... Binance breach leads to lost funds
How many times?
I'll say it now and I say it until I'm blue in the face. Don't leave your crypto on Exchanges!
Exchanges are exactly that.
Exchanges.
Places where you go, make your trade and take your new coins away with you. It's simple. Getting caught up in a hack should be a misfortunate happenstance of timing.
Tread lightly
Personally, not only do I not leave anything (but insignificant amounts) on Exchanges. I also don't trade large amounts in one go. If I want to do an Exchange which is a significant amount for me; I'll do it in installments. Sure I may miss out on optimal gains however as I'm not a trader that is less of a concern than ensuring the bulk of my funds remain in my control.
I like to tread lightly with Exchanges. Yet it appears, despite all the red flags, others are insistent on pitching up tents and sticking around long-term in them!
Honey pot
The Binance breach shows that hackers will go to great lengths to not only steal funds but maximise the amount they take. The sober reality is that centralised exchanges are never 100% fool-proof.
Decentralised Exchanges do help to solve the trust in third parties issue. However, ultimately the trust lies with us and the personal measure we put in place to ensure the ultimate safety of our funds.
Reorg my ass!
I watched a Twitter feed of CZ the CEO of Binance where he mentioned that the Company considered exploring whether they could reorg Bitcoin (rollback the chain to reclaim the hacked funds).
CZ had also said that he had not had much sleep in the preceding 29 hours; so I'm going to take that into consideration; because it is hard to think that the miners would even consider reorging the chain and undermining the integrity of the network.
While it sucks to think hackers got away with stealing so much; it's a slippery slope for miners to start bailing out Exchanges that mess up.
Short shrift
Thus far the market has given short shrift to the news of the Binance breach and rollback talk as the price of BTC marches past $6000.
I think the market is maturing to these pieces of news. For me, it's the market appreciating that these services built on and around bitcoin are not bitcoin. In the same way that websites and platforms built on the internet are not the internet.
In the meantime; the mantra stays the same. Not your keys, not your bitcoin. It appears Binance have a fund that will enable them to absorb the hit and reimburse their customers however it's better to be safe than sorry.
Very true words spoken here.
If you don’t have the keys then you don’t own the coins. I am sad to think of the losses that people incurred here, but exchange hacks are just part of the crypto life! I agree 100% keep your coins in wallets protected by your keys and don’t depend on anyone else.
In an interesting parallel the President of Venezuela was recently denied access to over 250 million dollars worth of gold his government had stored in a bank in the U.K. !
If you don’t have the keys, you don’t control your money! It’s that simple!
I read that the funds were insured, so Binance and CZ didn't absorb the loss. Either way, it shows us that the ol saying never keep funds in exchanges keeps proving itself correct time after time.
Trying to look on the bright side, the response I read on Twitter both from the community and from Binance was positive. I read on Tw also that Justin Sun from Tron offered to send 7k BTC on the Binance market to revive it and volume doesn't take a hit, but that for me just sounds like open and cynical market manipulation admitted on Twitter, so him trying to get some good PR made a huge mistake IMO.
All in all after this, Binance could start going uphill now and I highly doubt traders put their trust in them again.
Good to hear about you man, hope all is good.
Good to hear from you too. For some reason, I think there is more than meets the eye on this 'hack'.
Wow! Another hack?! Binance!
One of the biggest cryptoexchanges in the world couldn’t keep those peoples Bitcoin safe!
Wow ! If you don’t have your coins in your own wallet you can lose all your crypto! Even on a Big Name Exchange like Binance. Lesson learned. Keep your crypto off the exchange unless your exchanging !
Thanks
Yeah, they also frozen all withdraws and deposits in Binance for a week. Smh Smh 😳
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Nothing worse than having your funds trapped on an Exchange... I'm glad I've got nothing but dust on there.
I need to get my steem off there lol... when they release it, I’ll roll up another 10k of steem back to my steemit account 🤦🏼♂️😂
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I think that BTC will not break this resistance because in the past it is considered a good support. I also keep my currency in safe wallets and do not leave it on the exchanges .
Your warnings are important to remember. Luckily, Binance chose to cover that loss themselves. But the hackers will keep being one step ahead of the exchanges some of the time.
Considering how many times this has happened, i'm taking your advice. Thank GOD there's a Bitcoin center here in Korea and in Japan. I just get my bitcoin and exchange from there. I'm good to go!
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