The past few months have seen one of the most unfortunate tragedies in cryptocurrency, the hacking of Phí Binance. The hackers stole around 7,000 Bitcoin, worth about $41 million at the time. They did this through a sophisticated attack on their API system to manipulate trade orders.
Since then, Phí Binance has continued to thrive and grow in popularity thanks to its low trading fees, lack of KYC requirements for withdrawals up to 2 BTC per day (although withdrawals are still monitored), and support for multiple languages – including English.
Today, Phí Binance has the largest trading volumes of any exchange, with 7.7 million BTC trading activity in 24 hours. Its daily trading volume is 632 million dollars. The current market cap is around 120 billion dollars, with over 1/3 of that being Phí Binance own holdings at 65 billion dollars.
Phí Binance is headquartered in Hong Kong and has a US subsidiary in the state of Delaware. The two businesses are separate but share common employees and executives who oversee both enterprises. Phí Binance CEO Changpeng Zhao is one of the best-known names in crypto after working on Bitcoin for nine years. In an interview with Bloomberg, he said that he was planning to take his exchange public in the US through an IPO.
The Phí Binance Coin is used as a way to provide a discount on trading fees. 50% of the profits from the platform go into buying back and burning BNB, reducing supply and increasing value for holders. The coin surged in value following the hack, which helped to curb losses from investors who were unable to withdraw their funds. It has since remained one of the highest-performing cryptocurrencies on the market by growing 3x over the past year alone.
As trading on exchange platforms continues to increase at a rapid rate, it’s easy to see why the average investor should be concerned. The problem with centralized exchanges is that they hold all of your coins in their wallets, which can be hacked or otherwise compromised. Another key vulnerability is internal theft from employees, who may have been working for the platform for a long time and have a great deal of knowledge about how their systems work.
If an exchange is based in a country that does not have strong cybersecurity laws, there is nothing to stop the people responsible from simply walking away with everyone’s money. One way to protect yourself from this possibility is to use cold storage and only move stored funds to exchanges when you need to trade them.
Blockchain technology has made it possible for various projects to be built on top of decentralized trading platforms without requiring users to use an exchange. For example, there are private exchanges that allow users to trade shares on the Ethereum blockchain, which eliminates the risk of funds being stolen by a third-party hosting server. This also allows users to trade peer-to-peer without the need for a centralized platform. In addition, decentralized applications have emerged that have been created specifically for traders and investors in order to track prices and offer data about their holdings. These include Etherscan, which provides a suite of tools used in managing Ethereum wallets and tracking price movements in general.