With the recent hack on Coinrail, new data shows that Crypto investors have lost $2.3 Billion in hacks. The hack on Coinrail makes it the ninth largest hack so far in the crypto space. Lack of proper regulation and security has meant that it’s the investors who end up with losses whenever a breach occurs.
The top eight are made up of familiar names and include Mt. Gox $450 million, Coincheck $400 million, Bitgrrail $170 million, Parity Wallet Suicide $160 million, Bitfinex $77 million, NiceHash $62 million, DAO $60 million and BTC Global with $50 million.
Fraud and hacks are nothing new the crypto sphere and many believers of cryptocurrencies say it’s a necessary evil as we try to build a superior financial system. However, the growing number of hacks and fraud in the space is alarming and it’s the high time people involved in the industry did something about it if cryptos are to be accepted by everyone.
When crypto exchanges get breached, it’s the customer who always losses. In very few cases are the coins recovered and victims refunded.
Jon Russell of Tech Crunch calculates the latest hack on Coinrail to have a loss of approximately $40.2 million. The loss has come from various ICO projects with Pundi X, Aston X, Dent and Tron being the tokens affected.
Many believers of crypto are convinced that they will replace fiat currencies and the institutions that control them however at the most basic level Bitcoin, Ether, and other crypto coins are products that are designed to store and transfer value.
Whenever a new product is introduced, investors have to be convinced that it’s superior to the existing offering. Promoters will sell a story of tighter security, greater independence, lower cost and better privacy.
To get a good perspective of how off investor security is in the crypto space, have a look at credit card sector. They also promise security and banks and credit card brands actually do their part by protecting consumers from losses. It comes from the fact that they have to cover those losses from their own pockets and therefore invest heavily against such incidences, however, this can’t be said for crypto exchanges.
Now that Crypto investors have lost $2.3 Billion in hacks, it’s the high time the crypto industry prioritizes on investor security if they want to overthrow banks and fiat currencies.
Do you believe exchanges can do more to protect investors? Share your thoughts in the comment section below.