What Is The Main Risk Associated With A Cryptocurrency Hot Wallet?
What Is The Main Risk Associated With A Cryptocurrency Hot Wallet?
The world of cryptocurrency and digital assets has been rattled with investors losing faith following the FTX crash. While new and experienced traders are uncertain of the industry currently, there has been a wave of advocacy from bullish figures such as crypto exchange Binance CEO Changpeng “CZ” Zhao.
While Binance had commented that it might be looking to acquire FTX, it released a notice that it would not be continuing the process to buy the exchange or teaming up given the “mishandled” funds and news of the investigation.
As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of https://t.co/FQ3MIG381f.
— Binance (@binance) November 9, 2022
El Salvadoran president, Nayib Bukele, has weighed in on the saga that has unfolded with ongoing issues related to FTX. A known Bitcoin advocate, Bukele has taken to Twitter to say that “FTX is the opposite of Bitcoin” pointing to the original vision behind the cryptocurrency.
FTX is the opposite of #Bitcoin #Bitcoin ’s protocol was created precisely to prevent Ponzi schemes, bank runs, Enron’s, WorldCom’s, Bernie Madoff’s, Sam Bankman-Fried’s…
…bailouts and wealth reassignments.
Some understand it, some not yet.
We’re still early.
????/21m
— Nayib Bukele (@nayibbukele) November 14, 2022
Noting that “Bitcoin’s protocol was created to prevent Ponzi schemes”, Bukele pointed a finger at FTX and Sam Bankman-Fried (who has just recently resigned as CEO of FTX) as a financial fraudulent character. In his commentary, he noted that the Bitcoin protocol is in place to prevent malicious behaviour in the financial industry.
Bukele also added that Bitcoin has a capped supply, unlike fiat tender which can be printed, at 21 million BTC. This not only means it doesn’t run the risk of inflation, but it also makes BTC an uncommon asset to own in the world.