Comment Re:"Nothing to See Here. All is well!", says Found (Score 3, Interesting) 22
Sure, but if - as is likely given how AI is finding exploits elsewhere - this kind of heist becomes more commonplace what do you think is going to happen to the notional value of all those secure crypto wallets? Even if you take Binance at face value, then while they've either recovered, or are in the process of recovering, a significant chunk of the stolen tokens, they have still had to dip pretty deeply into cash reserves to cover the rest.
Where is the money going to come from if Binance are done again before they get to rebuild that cushion, or keep getting hit with lots of somewhat smaller heists in a death by a thousand cuts type scenario? What do you think is going to happen to market confidence, and therefore token values, if another of the major exchanges defaults/rug pulls as a result of one of these heists, which is probably just a matter of time now? The reality is that there's a whole bunch of people using crypto who are either too lazy and/or not technically adept enough to sort out their own wallet and keys, so they're going to keep using exchanges like they are banks. That makes the whole system vulnerable to token value crashes because it doesn't matter where and how securely your crypto is stored if the value of the tokens tank; everyone with a HODL position gets to be a bagholder in that scenario.
Where is the money going to come from if Binance are done again before they get to rebuild that cushion, or keep getting hit with lots of somewhat smaller heists in a death by a thousand cuts type scenario? What do you think is going to happen to market confidence, and therefore token values, if another of the major exchanges defaults/rug pulls as a result of one of these heists, which is probably just a matter of time now? The reality is that there's a whole bunch of people using crypto who are either too lazy and/or not technically adept enough to sort out their own wallet and keys, so they're going to keep using exchanges like they are banks. That makes the whole system vulnerable to token value crashes because it doesn't matter where and how securely your crypto is stored if the value of the tokens tank; everyone with a HODL position gets to be a bagholder in that scenario.