Crypto.com Hack, The FUD Keeps Rolling In

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I hardly ever feel sorry for people who lose money by leaving it on an exchange? Why? Because I was one of them back in 2016 and I was not made whole. I had to learn my lesson the hard way. As the bitcoin fud heats up, it's not smart to also add self-inflicted wounds to the discussion.

While crapto.com I mean crypto.com hack is a reminder, Not Your Keys Not Your Cheese it is also a fair reflection of shitcoin casinos and where their focus lies.

Crypto.com confirmed that 483 accounts were compromised and $14 million in ETH, just over $17 million in BTC, and $66,200 in other cryptocurrencies withdrawn during the incident. Now all individuals were made whole by the exchange illustrating how deep their pockets are but this won't always be the case.

When you have more money than sense

Crypto.com is one of the biggest exchanges in the world, the company boasts a $19 billion valuation and has already made 3 acquisitions of smaller firms. It's making money hand over fist but it's also racking up major debts to drive growth, using the typical silicon valley grow at all cost model.

They've spent a lot of money on listing new coins, adding a better exchange, launching more financial products but also marketing, lots and lots of marketing. It's spending on celebrity endorsements from the likes of Matt Damon, renaming stadiums and even sponsoring the UFC.

Crypto.com is everywhere you look these days, trying to sucker people into what is clearly a subpar system of perverted incentives. As for security, they leave much to be desired, the app is riddled with bugs and while they did release a non-custodial wallet it doesn't offer much support.

When you're focused on growing your user base and extracting as much value from them, security is the last thing on your mind and the bill eventually came due with this hack.

crapto.com.png

A reminder to the individual

As I mentioned affected parties were made whole, but remember, that bitcoin is gone for good. It's moved on you are made whole by an IOU, this could be insurance to buy back off the market, using their own balance sheet or a promise of income securitized to take out debt to buy back off the open market and make users whole. This is a very expensive exercise, especially when it comes to bitcoin and not many exchanges can pull it off.

In the future, it will be far less likely and any exchange hack would end the exchange for good.

This is why you need to hold your coins in a wallet where only you hold the keys, preferably a cold storage device where the keys are generated offline. Hot wallets are fine, but they still offer a range of vulnerabilities, especially if you're regularly singing transactions and not concerned with the network method in which you connect to the internet.

If you are going to play ape games on exchanges, so be it, just don't come crying when your fund flee to someone else wallet.

Sources:

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, "I am a Jessie."

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35 comments
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!LUV !PIZZA !LOLZ

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Lol we feeling awfully tip friendly today

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Feeling guilty cuz I didn't have the motivation to comment given that I still have coins on crypto.com.

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Lol better get them off there and into somewhere safer

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Ever since I lost my funds on Altilly Exchange due to hack occurrence, I can't leave my assets on exchanges. It's always best to keep them in a wallet where you are in charge of your keys.

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I too got burned major and learned my lesson very quickly, trust no one and verify everything, I hope you looking at cold storage too not just a general hot wallet

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I still feel sorry for them because I know how it feels to lose money. I think exchange should work on better security.

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No they shouldn't, people need to learn to self custody or get burned

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Who hurt you?

In all seriousness, it's a lot to grapple the nuances of interacting in defi, using a hot/cold wallet and signing transactions. It's wholly different than how we've handled things for the past 50 years since computers and centralized banks took over retail finance operations.

Case in point, I bought a cold wallet so I could feel a bit more secure with my keys and when making transactions through signing. I haven't even set it up yet because it actually seems pretty complicated and not smooth to do defi this way. Most protocols in defi still aren't supported, just major coins. Please correct my ignorance if you want, but I think if we all want crypto to grow, we have to be stewards and educators.

Lord knows the elite have remained elite for this long by jealously safeguarding their precious tricks and arcane knowledge. Do we really want to create an in-crowd this early in the nascent period of crypto's adoption by the masses?

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I hurt me, and I had to learn my lesson like everyone else. UIs can be made easier ofcourse but I don't agree with saying learning a new skill is not important. It's an opt in system, if you prefer the 3rd party risk so be it, thats the choice of the individual. I prefer to hold my own keys.

To me its like moving from a bicycle to a car and saying oh not its complicated I have to change gears and turn a wheel its weird no ones ever going to use it despite the obvious 100x benefit.

As for DEFI protocols, they are all centralised, distributed but centralised and using hot keys comes with its own set of risks

Having airgapped keys provides the best level of security, but you don't have to use it, to each their own. I just prefer taking responsibility for my funds and happy to do the work

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yes, i understand they do it for the user friendliness and maybe they feel uncertain. however i don't feel sorry for them and their greed. let them burn with their greed

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Who are you referring to? Exchanges or the users who get robbed for leaving their money on an exchange?

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i'm referring to the users who leave their money on the exchanges. if it weren't for them would be no exchanges. Let me tell you what trading is.. All trading involves 2 parties sitting up here all day trying to figure out a way to steal money from the next guy

it doesn't improve the world.. doesn't make it better and their greed spurs them alone. if they weren't greedy they'd get involved in projects like i spearhead the citizens dividend, worthwhile causes like life extension and fighting diseases with the currency and improving people lives. no instead they are greedy capitalist.

they will lose their money and their will be gnashing of teeth and i hope they burn in hell!

i could give a hoot about if you guys lose your crypto money or not

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lol. love you bro.

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And I will strike down upon thee with great vengeance and furious anger those who attempt to poison and destroy my brothers. And you will know I am the Lord when I lay my vengeance upon you.

all capitalist must go in the lake of fire

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I always knew the CIA/Illuminati/5 eyes/China Politburo/1000 Talent program/Lizard people larped as Jules and Vince Vega. ;) I see you.

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now i want you to tell me who on hive working for them? so we know who to go after. we need names.. if you really for the cause

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bruh, I'm saying that you are.

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you are our enemy, you going down

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This guy completely gets it, most fire comment I've seen on my posts in ages

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I think that this hacking and theft was more like one of their expensive publicity, as they were able to show that they can stand up for those affected by theft.

This will get more and more people onto their platform.

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You could be right, some people will still use it but as for me, sorry I trust no exchange, and I learned my lesson first hand. Holding your own keys in this game is fundamental to getting the most out of the system

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I use stealthex.io for just this reason.
If I am gonna loose to an exchange it will on the be the one transaction, but they have been reliable for a couple years now.
I've even had them refund me when things went awry.

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Lol I feel you, they always going to nail you somewhere, so why not just make it a once off, I feel the same way, and once I get it, i take it off your books, no sense allowing you to get even richer with my money

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I agree we must protect our money, and exchanges are temporary in nature we should not be using them as permanent storage.
Crypto. com may be facing a problem as growth that is too rapid can kill a company just ask those guys at Gateway Computers they grew way too fast opening too many stores with out the sales proof to justify such expenses and boom they are no more.

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Exactly, all exchange should be conducted instantly, but these businessses have found a way to create middlemen where it is not needed.

I totally agree with you on growth at all cost, I see it in many tech start ups and exchanges won't be any different all they are trying to do is grow large enough to get bought out by banks

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