Bitcoin Forum

On Tuesday morning, Cryptopia, a lesser-known crypto exchange centered around small cap assets, took to Twitter to release a harrowing piece of news. Company representatives claimed that on January 14th, Cryptopia, a platform that trades approximately $1 million of digital assets each and every day, “suffered a security breach.”

More at: https://www.newsbtc.com/2019/01/15/breaking-crypto-exchange-cryptopia-hacked-police-starts-investigation/

Tweet from Cryptopia: https://twitter.com/Cryptopia_NZ/status/1085084168852291586

Lucky for me I had no funds there, what about you guys? I hope this does not turn out to be a big loss for lot's of users.

Thankfully I didn't mainly trade on Cryptopia as I only discovered it while trying to sell an altcoin worth a few dollars at best.

But still, a wake up call for the rest to keep as much of their funds off exchanges as possible.

True, I always put my stuff in my own wallets. But if you unlucky, while doing a trade ....

I encountered it before; suffered a stolen (in-joke) on Bitgrail with a bunch of my NANO withdrawn. I was left with no choice prior to the incident although the exchange was shady due to the limited exchanges NANO had back then.

Until now, the lawsuit is still ongoing.

It is easier to keep token on ethereum platform and bitcoin to wallet compare with the tokens from stellar, neo etc. Thank God am not a victim but people will still be victims cause we cant just but put some coin on wallet for trades.

Cryptopia is you compare to the new exchanges today still can be considered bigger. They'd be back online as soon as they get it resolved. I have some altcoins in there that I forgot to sell. If hey will release their own token, they may be able to get back on track and compete the top exchanges.

I used to use Cryptopia on several occasions, and I've never had any problems with the service. They are good when you want to sell some tokens which are not listed on other exchanges, or rather not listed on trusted exchanges, because there are always scammers proposing you to exchange anything for anything. But, as a rule that applies to any exchange, you should never keep significant amounts there for more than several hours.

I wish them to resolve the issue as quickly as possible and to be back in the business.

Bad news. Mixed feelings about these guys. A true homegrown crypto startup, just a couple of guys and working to build a small platform for alts long before the alt bull of 2017. They had a lot of problems, eventually sold to new management last year, slowly turning around and then this.

I have always felt a kinship with those trying small stuff and working toward a bigger idea... But centralising will always be a point of failure. Apparently, an insider job this time. Can't see them pulling out of this...

In recent times they've had up to 100 wallets 'in maintenance'. They should've shut down, returned everyone's money and then relaunched when they were capable of delivering a service worth using.

They got swamped by new users during the bubble and have been limping ever since. This might be the fatal blow.

I hope this is not a fatal blow. Lot's of coins in maintenance for far too long indeed.

It may sound harsh, and I obviously don't want anyone to lose money, but this being a fatal blow to that exchange means it can no longer harm new users.

It was only a matter of time before they either would shut down and take a run with people's money, have the crap be hacked out of them, or that regulators would shut them down by force. Having to worry about one of these aspects is already a reason to not use them, having to worry about three of them is just asking for problems.

It's one of the shittiest exchanges in the space. What do people seriously expect?

It wasn't a bad exchange, although loaded with shitcoins it was fully functional and licensed in new zealand. I still have some on that exchange which i hope to get back

$1 million in daily volume gives you some idea -- it wasn't the biggest exchange.

With the altcoin market being so dead, I haven't touched tiny exchanges like that in over a year. I do have an account there and if this were 2017, I might have been affected.

Yet another example why you shouldn't store funds on exchanges. Just deposit, trade, and immediately withdraw.

I have my doubts about decentralized exchanges because of them being so tied to centralized payment systems when it comes to fiat, but when it comes to cryptocurrencies, decentralized exchanges seem to be the future. So, services like Cryptopia will eventually become obsolete, because their main feature is listing of wide variety of altcoins.

Bitcoin goes down in value and suddenly "hacked" exchanges are starting to pop up. It wouldn't be the first exchange in financial difficulties where the owners decided it will be best if they stage a hack and disappear. Back in a day when your business wasn't doing well a popular way out was setting it on fire. Nowadays, when many businesses are virtual (meaning that they aren't producing anything and aren't providing any physical service) it's even easier.
To those claiming that the hack was real I have one answer: You either keep money on cold wallets or you're an idiot playing with fire.

I wanted to use Cryptopia before, but then I changed my mind! Now I'm glad that I made the right choice. I wouldn't want hackers to steal my savings. For me, it would be a loss of what I've been striving for many years...

The only reason why you'd lose your money is if you store your coin in the exchange such as cryptopia. Exchanges are meant for storing coins and token you wanted to hold.

One thing that I really notice in crypto is that if they want the price to dip, they start to announce exchanges getting hacked.

Fiat can be replaced with USDT or any other stablecoin. Yes, it's not exactly decentralized, but you can freely move the stablecoins without asking for permission, and that 24/7, which makes it a great alternative.

I'm sure that a lot people are open to stablecoins considering how strong and superior the adoption of USDT is. It's the only coin/token that actually does what it is meant to do, which can't be said about any other crypto.

The volumes USDT generates are twice as much as its market cap, which is pretty insane if you think about it, and that after all the shit and fud they went through. It's here to stay, regardless of what people think of it.

I think decentralized exchanges will eventually make small, illiquid altcoin markets like Cryptopia completely obsolete. Binance is incredibly profitable, but they obviously see the writing on the wall considering they are building a DEX.

However, I wonder about the limitations of decentralized order execution -- especially regarding network latency and unreliable orderbooks. It could take many years before DEX technologies can even remotely compete with centralized exchanges, which matters because real-time execution and order book depth are really important considerations for traders. All the current DEX exchanges are also built on centralized server and domain infrastructure, so they can be targeted by governments. Who knows when we'll see a DEX built on a decentralized DNS and mesh networking?

Not to mention, atomic swap capabilities are not built into most altcoins at this stage. It might be many years before we see a DEX emerge than can compete with centralized exchanges -- even altcoin-only exchanges.

Did you mean that exchanges are NOT meant for storing coins and tokens you wanted to hold? I just figuring out the posts because it is the opposite of the idea you convey about losing coins in an exchange. Anyway, It is best to keep coins and tokens in an offline or hardware wallet. This to secure the holdings but if you are doing trading then sadly you need to transfer the coins in the exchange. One thing you will going to do is to trust the exchange. This exchanges are somehow making you agree about the liabilities when you use the service. So, if I were to use trade I should get into a good exchange like Binance. Picking good crypto should be at the exchange like this.

Actually not all coins are on good exchanges. Plus, many are not willing to wait because the prices might tank by the time they support them.

Yeah this is one sad news for all cryptopia users  like my brother who uses this exchange for quite sometimes and has some volume of coins inside estimating almost $8,000 ,the support seems replying them helplessly so they know that nothing to expect but losses.lucky i am because I didn’t follow him to use the site instead I used those big and popular sites

Binance got it!

Funds are safu!

Some, not all.

From observing previous hacks when someone is frozen they move on to other exchanges that are more slack. When Coincheck had $500 million of XEM stolen the hacker eventually found an exchange who publicly stated they didn't give a fuck so he piled in there until they caved to public disgust.

how is USDT an "alternative" to fiat?

in order to have USDT issued, one needs to do KYC and deposit fiat money, just like any fiat exchange. if you want to redeem USDT for real money, you're at the mercy of tether to honor your redemption.

the USDT economy is completely dependent on legacy banking, so it offers nothing new. sure, you could theoretically use USDT on decentralized exchanges, but that doesn't address the actual problem of moving fiat money in and out of the economy. all it does is put the AML/KYC burden on tether rather than the exchanges that list it.