En crypto: FTX debacle demands more crypto security for shook up HODLers

With the FTX debacle rocking the cryptocurrency boat so violently, it’ll take more security assurances to assuage the shook up crypto HODLers to ‘hold on to dear life’.

According to a blog from blockchain analysis firm Chainalysis, cryptocurrency crime rose to a record high in 2021, with illegal addresses gaining US$14 billion in digital currencies, a 79%  spike from US$7.8 billion in 2020.

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In April, US$1 million of Bored Ape Yacht Club NFTs were stolen with an Instagram hack.

Crypto giant Binance became a hub for hackers, fraudsters and drug traffickers, serving as a intermediary for laundering up to US$2.35 billion in illicit funds, a Reuters investigation has found.

The recent FTX debacle and other safety-related concerns and incidents have shaken up the crypto and blockchain industry across the globe. It was found in official property records that Sam Bankman-Fried’s FTX, his parents and senior executives purchased at least 19 properties valued at almost US$121 million in the Bahamas in the past two years.

In November, Binance signed a nonbinding agreement to buy FTX’s non-US unit to help in covering the ‘liquidity crunch’ but the deal didn’t play out. Binance also promised to ‘lead by example’ in transparency, but according to Reuters,  the core of the massive Binance business stays largely obscure. Now, FTX’s Sam Bankman-Fried has agreed to be extradited to the US to face fraud charges.

Following FTX’s collapse, Bitcoin and other cryptocurrencies came under pressure as rival exchanges scrambled to reassure nervous investors of their own stability. Kris Marszalek, CEO of Singapore-based crypto exchange Crypto.com, denied suggestions about it being in trouble, announcing in a YouTube livestream address the platform’s intentions.

Measures to Become Crypto Secure

Amidst ongoing security concerns regarding wallets in the market, digital wallet operations infrastructure platforms like Liminal are working on building a secure and sound wallet infrastructure.

In November, Tezos India, a blockchain adoption studio integrated with Liminal, to enable both Tezos and Liminal to dedicatedly work towards making digital assets like cryptocurrencies/ tokens etc. safer and more rewarding for individuals and businesses without compromising in terms of security and ownership.

Early November, a Bengaluru-based blockchain startup Dhiway launched CORD, a Layer 1 blockchain project developed by the company for building digital public utilities, early in November.

Built with a focus on easy integration of existing applications or development of new applications, CORD includes developer documentation, SDKs and reference implementations to encourage adoption in use cases which assign priority to user-authorized data mobility, data privacy and security.

CORD is designed to simplify information management, making it easier for owners to control agencies and businesses to discover, access and use data to deliver networked public services. It provides a transparent history of information and protects it from unauthorized tampering from within or without the system.

The technological innovations of CORD allow the creation of unique persistent on-chain identifiers representing off-chain data, mutable data, and immutable state.

Additionally, features such as verifiable attributes, auditable history, and consent are pivotal to elevating the level of trust in the information exchanged over the internet. This unique structure – a comprehensive stack with tiered technical and governance levels – can serve multiple classes of applications for any form of registries and transaction platforms.

In the same vein, Cloudflare launched Post-Quantum Cryptography support for all websites and APIs served through its network, to enable support for post-quantum cryptography on nearly 20% of the Internet.

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According to them, it’s a big step to ensure the future of the Internet is secure. The update is free of charge and Cloudflare commits to fully secure all aspects of its services with post-quantum cryptography by the end of 2023.

Recently, RBI Governor Shaktikanta Das has deemed cryptocurrency a huge risk. Whether this sentiment is a result of the FTX debacle or not, the events haven’t helped. As the Cointelegraph says, “History proves that two factors play a crucial role in crypto market performance — the price of Bitcoin and investor sentiment. Both factors seemed to lack throughout the year.”

The FTX scam has indeed done a number on the world’s HODLers. The cryptocurrency industry needs to pull up its socks in matters of security.