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Bancor - a Kenya based exchanged which is known for its establishment of smart tokens got recently hacked. Bancor was said to be a decentralized exchanged but was recently compromised by hackers and suffered a huge loss of $23 million. People say that if it was a completely decentralized exchange then it should not have lost the funds. Bancor said they were able to freeze a portion of amount in the hack which again raised the question as a decentralized exchange cannot be able to freeze the funds.

What are your thoughts on this ?

News on cointelegraph : https://cointelegraph.com/news/bancor-urges-industry-players-to-collaborate-after-23-5-million-hack

Correct me if I'm wrong, but isn't Bancor the one who holds the control of the smart contract? If they control it, then, of course, they can change the code to make sure there is no transaction going in or out from their smart contract. AFAIK, in a decentralized exchange, your funds need to be sent to the contract address first before it went directly to other wallets.

Just like what has been reported here:
Source: https://cointelegraph.com/news/bancor-urges-industry-players-to-collaborate-after-23-5-million-hack

I think a decentralized exchange should be like what Charlie Lee said: "it can't lose customer funds nor freeze it". (https://twitter.com/SatoshiLite/status/1016499756158234624)

No matter where you go there will be hackers. And if you want to secure your funds, then you should secure them by yourselves and not letting any exchange control over it.

it is impossible to have a truly decentralized exchange.
the logic that if the development team of a decentralized market does not have access to freeze its users 'funds, the development team's computers must be destroyed to prevent them from freezing their users' funds. I as a software engineering scholar was taught science to maintain the system I created. of course the development team of a decentralized exchange has that knowledge. they will not let their system run by itself without their access rights. this is reasonable in the world of software engineering.

I found that Idex works the same way as bancor, we need to deposit the ETH or ERC20 token to the smart contract first before we can place the order to the market. Never actually get bothered with it but once I realize that it's
actually the same as centralized exchange but less stricter. I wonder what if someone just found the hole to get through to the smart contract, what will happen by that.

It's not an impossible thing. A exchange that executes P2P trading after matching orders can be truly decentralized ones. It's not that difficult to achieve and would be faster and less heavy for the network. They can use their own token for the gas. The smart contract should be made to execute only when the matching happens.

Its decentralized but until now there are no perfect codes that written to be able to fully secure tokens its breakable, hackers are more intelligent than codes this kinds of decentralized exchanges must regularly conduct hacking rewards to break their system and to update security loopholes.    

Etherdelta was decentralized too. But it was hacked by replacing domain address. There is nothing safe in the internet at all) You can be hacked everywhere.

I had a lot of faith in Bancor because it was decentralized.
However, at present, it can freeze its own tokens, while other tokens are still out of control, so I think other tokens are still trading reliably.

I think the platform/exchange is decentralized but clearly the token isn't. Won't go near any token that isn't decentralized personally. That's the whole point of crypto.

They need to do a lot more when it comes to security. As many other big and small players.
They gathered millions last year and they should do much more.
I'm using Bancor it's easy to use, but I'm feeling betrayed now.

Bancor Network is able to freeze their user fund and it means they have " control ". I think a system that can be controlled by one entity is a Centralized system

So... It's clear to me that Bancor is not Decentralized

I think the correct term about this kind of exchange is "partially decentralized."
Imagine we are in the traditional marketplace, then we should be able to buy/sell without any 3rd party intervention. In this case by a simple cash-based system.

Now with this "DEX," users cannot do buy/sell directly. They have to use "centrally planned" smart-contracts that often contain bug and/or security hole.

I think the news about the hacking of the Bancor stock exchange was one of the factors of a sharp drop in the capitalization in the crypto currency market on July 9. Unfortunately, the stock exchanges still do not pay sufficient attention to security issues

Secure it ourself ? A time will come that you will need to have to go to an exchange for trading some coins. We can't ever be without an exchange.
I know that our coins are safe within our control but what about the others ? What about the traders who regularly trade on exchanges ? An exchange should have better security to combat this type of problem.Might be true. Security surely needs to be improves in this case. I hope we get better exchanges in the future so that our money stay safe and secure.

Firstly I haven't heard anything about bancor untill this news arrived.Secondly It cannot be possible to freeze anything in decentralized system.According to me in decentralized system traders capital must remain in their wallets and cannot be entrusted to a third party at any stage and in this case something else has happened.Even though bancor is claiming that they have developed some Cryptodefenders to fight against crime and also they claim to locate the funds they have lost which I think is unreal.It will be very difficult to regain the funds.

I have not known it is kenya based really? and I don't think it is totally decentralized. But it has different approach regarding decentralized exchange.

However they may define their decentralization, true decentralization only happens when user send and receive exchanged coins P2P on wallet to wallet basis. The decentralized exchange should only facilitate it to happen using a smart contract and use the exchange specific coin as fees.

It's not based on kenya but I remember that the majority of team members of bancor have come from the Israel. It's not decentralized because the hacker has proven it but the bancor team has been putting the backdoor that make them all able to freze the token or destroy it.

I think bancor is not decentralized. It is a centralized exchange with a high liquidity. You dont need to match the price when buying or selling in bancor exchange. It is centralized because decentralized exchange can done with matching the order book by other peoples using their eth address wallet.

This is an old issue and it has been said that no funds were been compromise and it was all safe.

CEX or DEX are all vulnerable to be hack so don't store any funds. Last time ED has beeen hack and a huge amount of eth was stolen. So what's the issue of bancor again?

I have also used Bancor several times and I found it to be similar to other exchange dencentralize like Eltherdelta or Idex, which is also quite convenient and easy to use. When using these exchange, I often use Metamask to increase security, avoid the case of hacking wallets

Safe for what? have you watched it carefully? All of the amounts that are not in bancor form can't be refunded because they have no ability to burn or create a new token just like what they did with bancor. I remember guy said that bancor has an ability to freze or destroy the bancor token in any ethereum wallet address.

And I think Bancor token value is being overestimated by what the exchange and its projects bring to this market. In all decentralized exchanges, IDEX is still the most traded place

I don't truly understand bancor actually,  but i believe decentralized or not, they may be using a single wallet to or smart contract to collect all funds which can amount to them loosing that much after being hacked. Decentralized exchanges nowadays suffer a lot of attacks from scammers so that shouldn't surprise anyone,  i believe atomic swaps is the future

I read an article on the Internet that today almost all exchangers have been hacked at least twice no matter whether they are decentralized or non-decentralized scammers come up with new ways to circumvent the blockchain.

They are not decentralized and that's just a marketing gimmick. The bancor developer can't even maintain its vulnerability. Remember about it's raised around 200 millions dollars for nothing. It's not about the intelegency of hacker. it's about how the team can maintain its security properly.

It is too difficult to avoid the hackers everywhere. They will always know where to get the nice shot and when to make it real. I mean that we know that Bancor is a very promising and great platform offering the coin, exchange, and also platform for ICO and bounty. It serves great concept. However, hackers will not lose this kind of thing not to be hacked. Just big hope that it will end soon. 

I'm Honestly once using the bancor when the token pundix in market bancor.

Yes it's a bancor uses the system protocol are decentralised, but look in terms of exposed security attacks from hackers as well. On the other hand, their successful in Exchange too include the ICOs native-token BNT.

I think, maybe the previous existence of a hacker attack were due to many embedded system log-in a user account such as SMS, telegram, messenger (FB), wechat. This's the login function on model of social networking it was very risk the attack as well.

I mean, when the login account using to a (Bot-Telegram Bancor), often once a Bot that changed it's name and username then should all OTP codes. From then I stop using the bancor exchange, even though their website fast stable etc.

So all the traders, the user can rate and have an opinion an own. We suggest that we should avoid any losses there are both as bad as that.

Yes they are all decentralized but the hacker was so intelligent to make it them easier to stole the exchanger profits.The more we improve they are also improve it's ability to hacked.