The wave of crypto exchange hacking has been around for a while and serves as a warning for crypto exchanges that fail to secure and update their platform. Almost all exchanges already have their own hacking story and while many failed to move on and shutdown, others became stronger an earn more trust
Recently Binance, a top cryptocurrency exchange was hacked and 7000 BTC was stolen from the exchange, this came as a shock because Binance is surely a place you will want want keep your funds. But is the matter “get an exchange that can’t be hacked” or “get an exchange that has a good “in case of hacking” plan”.
Almost immediately after the hacking CZ Binance assured customers that the case has been controlled and that their funds is safe and will be refunded.
“Thanks for the support, really appreciate it. But currently no need. We will cover the loss from the #SAFU [safe asset funds] fund, there is enough. We are hurt, but not broke.” he twitted.
SAFU is a scheme previously implemented by Binance that saves some amount of trading fees as a backup fund in case of sudden loss like this. And after that, everything went well, all funds were covered, there were help from other crypto strongfoot like Tron founder Justin Sun.
This is a pointer, you can never get an exchange that can’t be hacked, the exchanges should only be planning for a hacking case before hand. Even when Binance can boast of the best security in the business, they still had a backup plan for a case of hacking.
It is impossible to have a software progrem that can’t be hacked and that is why we get updates every now and then, even the best programs have been hacked.
Looking at this, we will say the best Exchange is one that has a very good backup plan like that of Binance and then try to ensure maximum security. I expect to see new exchanges implementing this type of scheme or even better, that will take them out of the fools paradise of believing they can’t be hacked.