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Tokyo-based cryptocurrency exchange hacked, losing $530M: NHK

reuters.com

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Re: Tokyo-based cryptocurrency exchange hacked, losing $530M: NHK

#171

Post by kirillseva »

tn_ wrote: post #25
user9182031 wrote: post #14

Earlier quoted context omitted.

Could you share why you think it would impact the price of Bitcoin? With a market cap of 186 billion dollars, and a daily volume of 10 billion I couldn't see how it'd have that much of an impact.

The reason why fiat currencies are main-stream is because there's trust. People trust they can deposit and withdraw their money to and from banks w/ some semblance of protection and have transactions with little friction. News like this signals that you really shouldn't trust any crypto-currency exchange yet (just browse r/coinbase and people are waiting 1+ month to receive funds) , and I'll see a headline like the a…

That's because people should stop using centralized exchanges that don't have their funds insured, and should instead investigate using decentralized exchanges. Cross-blockchain ones are currently being developed, with OmiseGO and KyberNetwork competing to be the first to launch.

On Ethereum this ecosystem is much more developed, and you can choose between EtherDelta, IDEX, 0xProject and Radex.

These exchanges eliminate counterparty risk because you control your funds at all times. They essentially act as matchmakers between those creating buy/sell orders and those who fill them.

Re: Tokyo-based cryptocurrency exchange hacked, losing $530M: NHK

#172

Post by gruez »

conanbatt wrote: post #162
cryptonitez wrote: post #160

Earlier quoted context omitted.

Dozens of exchanges risking their reputation on it suggest otherwise.

Do you honestly believe Tether has 2.2 billion dollars in a bank account? Tether is a huge red flag to me..Enron level.

considering that multiple exchanges in addition to bitfinex ONLY deal with USDT (instead of regular USD), that's not too implausible.

Re: Tokyo-based cryptocurrency exchange hacked, losing $530M: NHK

#173

Post by CryptoPunk »

hartator wrote: post #169

They are tainting the stolen coins to avoid them to be sold. What’s the point of having a decentralized currency if a centralized entity make the decisions anyway at the end of day?

NEM (the cryptocurrency that was stolen) isn't decentralized.

Re: Tokyo-based cryptocurrency exchange hacked, losing $530M: NHK

#175

Post by AlexSolution »

Daishiman wrote: post #165
csomar wrote: post #130

Earlier quoted context omitted.

Why not? By using a usd-token like usdt it become possible. Bitshare usd also has been very stable lately and it is fully decentralized.

Somebody has to guarantee that the the USD are actually there to perform a trade. There's no other way to guarantee that that doesn't imply going off-chain.

MakerDAO uses collateralized smart contracts to provide stability to their Dai token. Right now, only ETH can be used as collateral, but in Q2 they are starting multi-collateral support.

https://makerdao.com/ https://coinmarketcap.com/currencies/dai/

Re: Tokyo-based cryptocurrency exchange hacked, losing $530M: NHK

#176

Post by ReverseCold »

CyberDildonics wrote: post #153
tzahola wrote: post #139

Earlier quoted context omitted.

>and I hold a small amount of XEM. *held :^)

I doubt someone who actually understands crypto currencies is keeping their money on an exchange, since this exact thing can happen.

Yup, my coin is safe.

Re: Tokyo-based cryptocurrency exchange hacked, losing $530M: NHK

#177

Post by ceejayoz »

gruez wrote: post #172
conanbatt wrote: post #162

Earlier quoted context omitted.

Do you honestly believe Tether has 2.2 billion dollars in a bank account? Tether is a huge red flag to me..Enron level.

considering that multiple exchanges in addition to bitfinex ONLY deal with USDT (instead of regular USD), that's not too implausible.

For the Tether to exist, someone's supposed to give Tether USD in exchange to USDT. If these exchanges are trying to avoid USD, where's the USD to buy the Tether coming from?

Re: Tokyo-based cryptocurrency exchange hacked, losing $530M: NHK

#178

Post by vkou »

cryptonitez wrote: post #160
vkou wrote: post #140

Earlier quoted context omitted.

A usd-token requires trust that the token issuer isn't just printing magic internet money. You've just moved your point of failure from the exchange, to the token issuer. All evidence points to USDT being just that - magic internet money, with nothing backing it.

Dozens of exchanges risking their reputation on it suggest otherwise.

I'm not sure if you're legitimately confused on this subject, or are deliberately misinforming people.

Just because an exchange trades tether doesn't mean their reputation is staked on it. Exchanges do not vouch for the instruments that are being traded on them.

Tether is issued by Tether Limited, which is a shell corporation wholly owned and controlled by one exchange - Bitfinex. Not 'dozens of exchanges.'

Allegedly, when someone gives Tether Limited $1 USD, they give that person 1 USDT. In reality, Tether has never actually been audited, and for all we know, they just give themselves 1 USDT, and sell it on the market... Without keeping a 1:1 reserve.

Re: Tokyo-based cryptocurrency exchange hacked, losing $530M: NHK

#179

Post by ggg9990 »

ssijak wrote: post #51
buttcoinslol wrote: post #6

Earlier quoted context omitted.

'Money ain't got no owners, only spenders' -Omar Little This quote applies to unregulated markets: drugs or cryptocurrencies.

I just finished watching all The Wire seasons for the first time and freaked a little when I saw your comment. I often see something on Hacker News that I just recently had contact with and is not that popular.

You’re nuts — The Wire, by acclamation, is to TV as Shakespeare is to literature.

Re: Tokyo-based cryptocurrency exchange hacked, losing $530M: NHK

#180

Post by viach »

CryptoPunk wrote: post #173
hartator wrote: post #169

They are tainting the stolen coins to avoid them to be sold. What’s the point of having a decentralized currency if a centralized entity make the decisions anyway at the end of day?

NEM (the cryptocurrency that was stolen) isn't decentralized.

Why not using a web site built on postgres or mysql database to track balances then, instead of using blockchain and call the thing "cryptocurrency"?
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