Insurance Demand Rises At Crypto Exchanges After $230 Million Theft
Here I am talking about the Wazirx hack and its consequences. Indian crypto community has been facing a tough time for a long time and I don't know when this will end. However, the good thing is that it inspires other exchanges and crypto firms to create new ideas and programs that can protect user funds.
Now there will compensatory fund facility to protect users' funds and repay them and this is a good step. We can see the same system in binance and that is called the SAFU fund system. Cyber attacks and scams can happen to anyone and they should learn from them and improve their security. Repaying users is necessary but this is not okay protection and security are equally important.
Getting insurance is not easy for crypto exchanges
According to the experts, this is not an easy task and they have to make lots of efforts to apply this successfully. Nischal Shetty said, "We already applied for insurance but we didn't get it because they do not want to provide the service to this type of company"
This was a good step but the team failed in this to apply. Nischal Shetty said that if any exchange says that it is 100% insured then this is not possible at all. When we see the Indian crypto exchange then there is Coinswitch which has insurance on custodial wallets to stop the thief.
CoinSwitch crypto exchange insurance
Balaji Srihari is a Business Head at CoinSwitch crypto exchange and he said, “We hold users’ cryptocurrencies in industry-leading custodial wallets. These custodial wallets are designed with advanced security measures to prevent unauthorized access or theft. coinswitch's custodial wallets are insured by reputable providers, which provides advance security.”
We don't his words are true or not but we have to ensure our safety first because fund safety is the first priority. I recommend always that never hold your crypto in centralized exchanges and use a ledger wallet for long-term holding. Hive is decentralized and its wallet is secure and that's why if you are holding hive in hive power then all good.
Crypto is still a new marker and we can say it is in the initial phase. This is the big reason it is difficult to get insured for the crypto firms and exchanges. 2022 was the biggest year of crypto hacks and we have seen multiple cases of crypto hacks. So this will continue to happen and the crypto community should need to improve security and Here I am talking about especially for the centralized exchanges. So this is what I want to share please share this post on social media and do a comment below I will meet you in my next blog. Have a good day.
Lucky Ali
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 | Hi I am lucky ali from gujarat, india. I am a crypto enthusiast, blogger, and SEO developer. I am always interested in learning new things and getting new experiences. You can find me on hive, twitter and discord (Lucky Ali#6343). Sharing is caring, Thank you hive family ♥ |
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