3 Reasons Why Tokocrypto is the Crypto Trust Building Machine
Blockchain which is the underlying technology of cryptocurrency has often been described as being trustless in nature. This can be gleaned from Bitcoin’s whitepaper which envisioned the flagship cryptocurrency as the bedrock of “an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party.” Notwithstanding the trustless nature of blockchain, this had not prevented the anonymity of crypto transactions from causing trust issues among regulators as the European Parliament had on 31 March 2022 passed rules which banned anonymous crypto transactions with amounts exceeding €1,000 (approximately USD1,100+).
Technical functions aside, a recent joint study by Queensland University of Technology and Macquarie University found that the high risks and high potential returns of cryptocurrencies as well as the fact that these currencies are not issued by governments render them to be particularly appealing to individuals with tendencies to have Dart Tetrad traits. Nonetheless, as the crypto market grows in maturity which in turn would bring about greater stability in tandem with greater governmental intervention through the introduction of crypto regulations moving forward, the psychological demographic appeal of cryptocurrencies are set to change accordingly. Till then, if the crypto domain is to enhance its trust levels it would need to collectively improve on its security awareness with the case in point being the recent hacking of the Ronin bridge.
Ronin Bridge: Need for Greater Crypto Security Awareness
In late March 2022, SkyMavis who is the developer of the popular play-to-earn (P2E) Axie Infinity, confirmed its Ronin Bridge was the target of a hack which involved about 173,600 Ether (ETH) and 25.5 million USD Coin (USDC) that have a combined value of about USD620 million. According to Aleksander Leonard Larsen who is the co-founder and Chief Operating Officer (COO) of SkyMavis, the hack “ was a social engineering attack combined with human error.” Thanks to the transparency of blockchain, crypto data analytics company Elliptic has managed to track the transaction trail of about 90% of the stolen funds and found that the hackers have already begun laundering the funds through crypto tumbler platforms such as Tornado Cash. With there being not much indication that the hackers would be returning the stolen funds as in the case of Poly Network where the hackers returned almost all of the funds they have stolen, Binance has stepped in as the crypto white knight to save the day.
In early April 2022, Binance led a USD150 million funding round for SkyMavis together with the participation of Animoca Brands, a16z, Dialectic, Paradigm and Accel whereby the funds raised will be used to reimburse users who suffered losses as a result of the hacking of the Ronin Bridge. With the hack having caused losses of about USD620 million, the deficit of USD470 million would be reimbursed from SkyMavis’ and Axie Infinity’s balance sheet. As the operator Ronin Bridge works on carrying out security updates and audits to plug the loopholes in its network, the hacking of the Bridge which is just one of countless hackings involving crypto platforms that resulted in cumulative financial losses of more than USD11 billion since 2011, points to the need for a major upwards shift in the security levels in frameworks of crypto platforms if the domain is to engage in its trust building efforts let alone to fulfil blockchain’s promise of trustlessness.
Tokocrypto: The Crypto Platform You Can Trust
Tokocrypto had always envisaged the mainstreaming of cryptocurrencies which is why we have structured our operations based on the twin pillars of security and integrity as these are the two sides to the coin when it comes to building trust, an essential element for the wide adoption and use of cryptocurrencies. Here are 3 reasons why Tokocrypto is the crypto trust building machine:-
Reason #1 — Trust, Our Most Valued Currency
Right from the get-go, Tokocrypto had designated trust as our most valued currency as we understand that every investment deposited with us is effectively a deposit of trust which is something that takes a long time to build, an instant to break and possibly forever to repair. You can watch our short film to find out more about our trust-based founding philosophy.
Reason #2 — Security, Our Track Record Forte
Tokocrypto’s anti-hacking formula which includes the conducting of regular systemic audits by blockchain security form Certik as well as the obtaining of ISO 27001 certification for our data information system and ISO 27017 certification for our cloud management system (which is a first for a cryptocurrency exchange in Indonesia) has played a key role in our unblemished security track record.
Reason #3 — Integrity, Our Operational Guiding Principle
Tokocrypto have since February 2020 partnered with Merkle Science which is a Singapore-based leading predictive crypto risk and intelligence platform to detect, investigate and prevent the illegal elements of money laundering or terrorism financing purposes from afflicting our operations.
The conventional financial investment markets are certainly not immune to security and integrity issues as illustrated by the hackings of stock market exchanges notably the one involving New Zealand’s Exchange (NZX) in 2020. As for issues of integrity, it is estimated that “insider trading occurs in one in five mergers and acquisition events and in one in 20 quarterly earnings announcements” in the United States (U.S)’ stock markets. However unlike the conventional financial investment markets which have been heavily regulated for quite some time now, the crypto market is largely unregulated whereby even for jurisdictions that have enacted crypto regulations, there are bound to be lacunas i.e. gaps as these are still early days for such regulations.
Accordingly, the onus lies on crypto market players to take it upon themselves to ensure that their operational frameworks are imbued with both security and integrity to earn the trust of both the crypto and non-crypto communities whereby leading the way in this regard is Tokocrypto, the crypto trust building machine.
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