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Demise Of Cryptopia, An Exchange that
Underpinned Many Shitcoin
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Cryptocurrency has now
become a prominent
financial field in the
economic zone. People
from all over the world
have been showing
immense interest in
buying and selling of
cryptocurrencies. Besides
this, they are actively
taking interest to know
about the crypto coin
market and many other
important topics that are
related to cryptocurrency.
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● Besides knowing about digital currencies, you must be knowing about wellknown crypto exchanges like Binance, Bitfinex, Gemini, Kraken, KuCoin, and
many others. But today, we are not going to emphasize any of these crypto
exchanges. Rather, we will let you know about the demise of Cryptopia, a
crypto exchange of New Zealand.
● The confirmation about the failure of this crypto exchange came after a
message. The cause of this crippling exchange happened when in January
attackers get away with cryptocurrency worth of $16 million from its wallets.
According to the message that came from this exchange, it revealed about
the management efforts in minimizing the cost and to make the business
profitable by returns.
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● Before the demise of Cryptopia, the trade was restarted in March, but very
few crypto assets around 40, were secured to be underpinned. Before
Cryptopia became a target of the attack, it was holding around a number of
crypto assets approximately around 500.
● The fall of this crypto exchange is also counted for the process of liquidation
that seems to be slow-moving. And this, of course, made Cryptopia users
frustrated. In January, a security breach resulted in losses prompting
Cryptopia exchange to go offline.
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Demise Of Cryptopia
● Before falling down, Cryptopia had been a prosperous firm that made its
debut in the year 2014. Adam Clark and Rob Dawson were two of the pair
founders behind this crypto exchange launch. After not getting desired
success with other exchanges, these pair came up with the idea of Cryptopia
as a pastime.
● Both these duo founders left their job to focus on the operation of their firm
fully, at the same time during in 2017, when the value of Bitcoin
skyrocketed. In 2018, Cryptopia experienced a successful business surge
with the maximum number of staff and worldwide million users.
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Understanding Cryptocurrency And Cryptocurrency
Exchange
● Before we carry on our discussion on the demise of Cryptopia, let us reintroduce the concept of cryptocurrency and cryptocurrency exchange,
especially for those who are new to the crypto world. Starting with
cryptocurrency, it is a virtual or digital asset like Bitcoin, Ripple, Monero,
Ethereum, Neo, and many more.
● Two of its prime objective is to provide security and anonymity for the
transactions. The technology used behind it is cryptography. While
discussing cryptocurrency, it is hard to ignore blockchain technology, where
most of the cryptocurrencies operate on it.
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● It all indicates no intervention from the central power. Also, there is no need
for any intermediary medium like a bank for the P2P transactions. The
performance of these digital assets can be analyzed through the
cryptocurrency market ranking chart.
● Now coming to cryptocurrency exchanges like Coinbase, Binance, Kraken,
Bittrex, and Cryptopia, then these can be explained as online platforms
where trading of cryptocurrencies are done via trading pair. These
exchanges take the onus of keeping funds of the users for trading by keeping
them into custody. But these currencies do face the risk of hacking. The
demise of Cryptopia can be quoted as an example in this regard.
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Hacking That Became The Cause For Cryptopia
Downfall
● The demise of Cryptopia came due to hacking that happened in January.
There was a social media announcement by Cryptopia sharing the
experience of a major breach of security indicating a heavy loss. The hacking
led to the suspension of trading services.
● This crypto exchange faced criticism for unscheduled maintenance which led
to its shut down. According to sources, the hacking was active from January
14 to 17. However, there was again no respite from hacking that again
returned after many days.
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Conclusion
Cryptocurrency is no doubt a new financial technology that has gained
much appreciation among people from all across the world. Besides
digital currencies, people came to know about many crypto exchanges
like Coinbase, Kraken, Bittrex, and Binance which became medium for
storing cryptocurrencies as custody for trading. No matter how much
buzz it created among many crypto enthusiasts, the demise of Cryptopia
raised the question mark on the existence of these exchanges.
Sources
https://www.cryptoknowmics.com/news
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