During decades of growth, the crypto market saw the rise and fall of exchanges. Many exited the market, and some were even shut down and fled. Those still left are all well-established and trustworthy. Over the years, the ups and downs of the market have been the result of regulatory oversight and policy restrictions, on the one hand, and internal security breaches, on the other. In particular, the security scandals of exchanges often take people by surprise.
The crypto market offers diverse options, including both the good and the bad. Therefore, for newbies and seasoned crypto users alike, a secure and reliable exchange must be selected before you make any investment. Some exchanges have made great progress through the commitment to compliant operation and asset security. Among these outstanding players is CoinEx.
The bombardment of scandals has thrown the spotlight on exchange risks and revealed two causes of security incidents: poor risk control and inferior performance.
The level of risk control depends on two factors: system security and asset security. With respect to system security, though most exchanges have established stringent control mechanisms, a gap exists as the technical capacity of small exchanges is very limited, making them vulnerable to hacking. As such, exchanges must strive for stronger technical capacity. In terms of asset security, the adoption of strict KYC verification and hot/cold wallet storage is the key. Additionally, an exchange should also prepare sufficient reserves to cope with unexpected security incidents. To excel at risk control, exchanges cannot do away with any of the above factors.
As the building block of all services, security determines the growth prospect of an exchange. CoinEx has built a state-of-the-art security system through a full range of continued support in technology and resources. Since its inception, CoinEx has never suffered any hacking incident, making it an exchange with zero risk, zero accident, and multiple guarantees. CoinEx is ahead of most trading platforms in terms of security.
How can exchanges avoid and guard against the ever more frequent security incidents? CoinEx has set an example.
Reinforced Defense with Bug Bounty Programs
According to statistics on DeFi security incidents from PeckShield (a provider of blockchain security services), as of May 31, this year has witnessed 48 DeFi security incidents, causing losses of approximately $500 million. From data on Beosin, 32 typical security incidents took place in May alone, with the DeFi sector being the hardest-hit.
To respond to the concern for the spate of security incidents, CoinEx strengthened its defense. A bug bounty program has been launched in collaboration with SlowMist Technology, with up to 5,000 USDT rewards as part of the community incentive programs.
The bug bounty program aims to include more security professionals to build the CoinEx ecosystem and safeguard assets and trade for members of the ecosystem.
Strict Internal Regulations for Security Guarantee
For CoinEx, user security is always a priority.
As a leading exchange, CoinEx is well informed about system security, operation security, and wallet security. All members of CoinEx’s founding team have strong tech backgrounds, which underpins excellent security technologies. CoinEx adopts strategies such as cold wallet plus multi-signature to ensure asset security. It works with top security teams for intelligent KYC risk identification, providing users with first-class transaction security. Once the system security is well-protected, assets will be secured.
Security is the top priority for any trading platform, and convenience is only a secondary concern. Poor security leads to potential trade risks, which may incur asset losses in the event of a breach. Though the investment of security is often disregarded when users choose an exchange, as a veteran in the crypto community, CoinEx is keenly aware that security efforts are always essential, otherwise, the exchange will only suffer from a slow death. Over the years, CoinEx has made solid technical efforts, which is why it can maintain a good reputation amid the present chaos of hacking, downtime, and scandals.
As blockchain technology and its underlying infrastructure advance, plenty of “pseudo” applications will become obsolete. In the future, apart from products and services, the race for exchanges will also highlight security, which is always a priority. Committed to user needs and trade security, CoinEx owes much of its success to security-centered development.