The suspension of withdrawal should change the mindset and not the hacked

[Riyabitt]

Just this year, we have experienced a major hack from two well-known exchanges. First, it was Bitget, and some days ago, Binance. When this incident occurred at these exchanges, users were given the assurance not to worry about their assets; they are safe with them, and any loss due to the hack will be replaced. I know people who use these exchanges, and their assets were safe; I haven't heard of any losses from anyone in these two different incidents. Since these exchanges were able to protect the assets of users, which I don't know if this is completely true, my concern was the suspension of withdrawals and P2P.


How did users feel about it? Has it changed people's mindset to see exchanges as unreliable places to keep assets?

[Ishicryptic]

Since I joined this forum I have familiarized myself with the popular phrase "not your keys not your coins" so before these recent hacks incidences we have always been cautioned about leaving our coins in exchanges. The reasons are simple, an exchange can be hacked, go bankrupt or they can freeze your coins for whatever reasons so it is better to leave your Bitcoin in none custodial wallets, leaving your coins in an exchange is at your own risk.

What can be learnt from these recent hacks is that if we must leave some of our coins in exchanges we should choose the ones that have gained reputation, if Bitget and Binance didn't have enough reseave funds for them to assure their account holders that their funds are safe they will worry and panic. Although these assurances by these exchanges are not enough guarantees that you must totally trust them and leave all your coins in their custody.

[The Founding Titan]

They are called Exchanges for a reason making it's ideal use a means to exchange crypto from one to the other or to fiat, holding assets over time is just a secondary use though I can't blame anyone who saves their coins on exchanges because no matter how much the use of non custodial wallets are preached there will always be people who can't trust themselves enough to hold their coins and for these people custodial wallets and exchanges are ideal locations to keep their coin.

[Emjay24]

How did users feel about it? Has it changed people's mindset to see exchanges as unreliable places to keep assets?

It didn't change anything, people are congratulating Binance all over the media for bouncing back within a relatively short while. To be honest we might see more ignorant people have more faith in Binance and move their asset there because are big enough and were able to contain such a big loss and continue operating without much problems.

In my neighbourhood, people are still singing Binance and Bitget praise, despite the that they should see it as a warning to get off exchanges and embrace proper self-custody,

[Agbamoni]

Since these exchanges were able to protect the assets of users, which I don't know if this is completely true, my concern was the suspension of withdrawals and P2P.

It happened to Bybit first, then Bitget, and then Binance. I know people using these exchanges when they were hacked. They all got their money back after the vulnerability was fixed. Mine was Bybit. I had funds in there before it was hacked. I got my money back, and I'm still using the exchange.

The P2P was halted for a few days. For Bitget, it didn't exceed 2 weeks, people began using the P2P again.

[Alvin_talk]

How did users feel about it? Has it changed people's mindset to see exchanges as unreliable places to keep assets?

Your question sounds like users here relied on these exchanges to store their coin in the first place. Maybe some users outside this forum rely on exchanges but not here. Exchanges should be used for what they were created for (buying  and selling of assets). Maybe you can store few bucks for trading and other related activities but not a huge amount. Every other coin should be stored in a cold storage, specifically, those that are open source like electrum.

That binance or any other exchange is capable of reimbursing users after a hack does not mean we should store our coins there. Because it is very inconvenient to disable my withdrawal for some days just because of your own security flaws. Mind you, that an exchange is hacked today doesn't mean it can't be hacked again tomorrow and what if their SAFU has not been replenished to be able to  reimburse users before another hack occurs, that will be disastrous for those who depended on exchanges to store their coins.

[Don Saga]

Since I joined this forum I have familiarized myself with the popular phrase "not your keys not your coins" so before these recent hacks incidences we have always been cautioned about leaving our coins in exchanges.

This was exactly my opinion, keeping assets on an exchange is risky but could be the most popular means people know how to save your assets. For me, I did not know how restricting and risky centralized exchange was until I was introduced to this forum and I learned about custodial wallets.

Self custody is the best custody, not under the any authority or monitoring like the centralized exchanges.

[obuoma]

The suspension of withdrawal was a necessary step to take to arrest the hack incident and also enable the operators to carry out full investigation into the hack. Every platform or even bank will do the same thing, so it shouldn't be a source of concern to anyone who understand how these things work. The good thing about this is that despite the stupendous amount that was stolen, Binance decided to cover the loss and no one has reported being denied withdrawal request since the lift the suspension of withdrawals. This does not mean that I encourage people to use Binance or any other exchange for saving their money, self custody is till the best because what happened was enough for the exchange to seize the funds of everyone that have them there.

[ZeroVinsonN]

How did users feel about it? Has it changed people's mindset to see exchanges as unreliable places to keep assets?

It didn't change anything, people are congratulating Binance all over the media for bouncing back within a relatively short while. To be honest we might see more ignorant people have more faith in Binance and move their asset there because are big enough and were able to contain such a big loss and continue operating without much problems.

In my neighbourhood, people are still singing Binance and Bitget praise, despite the that they should see it as a warning to get off exchanges and embrace proper self-custody,

Just because people are congratulating Binance for bouncing back this quickly doesn't mean those people support keeping your coin in Binance, binance might have a wallet but it is originally an exchange so if you are treating an exchange as a wallet and then hating on then when you lose your coin then the exchange wasn't really the problem to begin with.

I also want to point out that apart from mining, exchanges are one of the best ways to get bitcoin, most people here who buy bitcoin get it from exchanges and other P2P platforms that aren't non custodial unless you are willing to trust that stranger online that's promising to send you bitcoin to your wallet address if you send him money for it and them get scammed in the process.

[Coyster]

my concern was the suspension of withdrawals and P2P.

Why are you concerned about that? It is normal for any platform to halt withdrawals if they are experiencing an ongoing breach. It is a security protocol they have to take, while they access what is happening and patch the vulnerability that is being exploited.

Withdrawals are usually up after a couple of days, that is if the platform survives the security breach. If they go insolvent and can't continue operating, then they would file for bankruptcy and good luck to their creditors in getting their money back.

[Promocodeudo]

Just this year, we have experienced a major hack from two well-known exchanges. First, it was Bitget, and some days ago, Binance. When this incident occurred at these exchanges, users were given the assurance not to worry about their assets; they are safe with them, and any loss due to the hack will be replaced. I know people who use these exchanges, and their assets were safe; I haven't heard of any losses from anyone in these two different incidents. Since these exchanges were able to protect the assets of users, which I don't know if this is completely true, my concern was the suspension of withdrawals and P2P.


How did users feel about it? Has it changed people's mindset to see exchanges as unreliable places to keep assets?

At least I can talk of those in this forum, we have heard and learned a whole lot, I don't think thoes that have been register in this forum for 3 years plus will say they are unfamiliar with the advice, don't store your Bitcoin in an exchange, do you know why most users may not feel apprehensive when Binance decided to suspend their withdrawals, most guys using that platform are also using other exchanges, they are aware of bitget and Bybit hack, so they believed that withdrawals will definitely be restored back, I won't stop to say this, Bitcoin assets are not to be stored in exchange, expect our asset is not important to us.

[Doan9269]

People have become aware of the dangers of using a centralized exchange, yet you will find that many still have one or two reasons to stay with them. I know quite well that things couldn't have been so fascinating to us; they have been there and not considered profitable to an extent, but what does it sound like when we make a profit and later end up losing both the capital and the profit we had altogether due to a scam or bankruptcy with these centralized exchanges?

[Frankolala]

If you are keeping any funds in an Exchange let it be what you can afford to lose so that, if the exchange is unable to refund customers back their funds, you wouldn't be affected to the point of regretting your actions. In this last Binance hack, I had $100 in my Binance account but I didn't panic because it was what I can afford to lose. No matter what happens, it's good to be in full custody of your funds by using a noncustodial wallet to store your bitcoin. Bitcoin wasn't designed to be store in an exchange because it's the opposite to the nature of bitcoin.

[7juju]

If we are telling ourselves the truth, we all already knew that the cex was never a good place to store your assets. But as humans we will always like to see what will happen if we do what they are telling us not to do. I don’t think it’s the hacks that is going to remind us that the cex is not good for store assets. It’s good that the cex are refunding their customers, but what happens when the hacker takes away the money that the exchange can’t pay back? I felt bad about the hack because criminals are giving anti crypto people to talk about against crypto currency. I felt bad because the money the hackers took away are people hard earned money.