Kucoin Hack: Guarantee the Safety of Your Digital Wallet

Sarson Funds: Protect Your Digital Assets After Kucoin Hack

Weekly Analyst Thoughts

This week, I want to highlight the dangers of centralized finance (Cefi) and hot wallets (cryptocurrency wallets connected to the internet) by reflecting on the recent $150 million-dollar KuCoin hack. One of the major problems with Cefi exchanges like Coinbase, Kraken, Bittrex, and KuCoin is that the cryptocurrency user does not actually control the asset. The Cefi exchanges control the funds with private keys, making them a honeypot for hackers due to the large amount of money that is stored on these exchanges. There is a phrase in the cryptocurrency community to hammer home the point of Cefi exchanges: “Not your keys, not your coins.” If cryptocurrency users and investors continue to relinquish their private keys to these Cefi exchanges, these hacks will continue to occur. A nice middle ground is to set up a multi-signature wallet, which needs multiple keys, with a custodian, so if the custodian or the investor ever loses their key, they can easily access the wallet from utilizing additional keys. A good example of this multi-signature solution would be Casa, a provider of custodian storage solutions for digital wallets.

Although hot wallets are extremely convenient to use for buying, spending and selling crypto, there is a hardware wallet that rivals hot wallets: Ledger Nano X. Ledger Nano X improves upon its predecessor, Ledger Nano S, and its’ annoying USB cable and limited storage. The Ledger Nano X can hold up to 100 different cryptocurrency wallets with the help of Ledger Live and has a Bluetooth connection that enables investors to forgo connection via a USB cable.

In summary, KuCoin’s $150 million-dollar hack is a stark reminder of the dangers of centralized finance and hot wallets. Two solutions to Cefi and hot wallet hacking problems include using custodians like Casa to hold your private keys and using cold storage wallets like Ledger Nano X.

By Jacob Stelter

Balancer Token’s Release Provokes Momentum For the Defi Space

Weekly Analyst Thoughts

Balancer Token

Cryptocurrency enthusiasts have predicted that most future trading will take place on decentralized exchanges, such as Uniswap, instead of centralized exchanges, like Coinbase. Thus far, this prediction has only come true for Ethereum and ERC-20 tokens, which are the standard tokens used for Ethereum smart contracts. On the Ethereum blockchain platform, there is a thriving decentralized exchange (DEX) ecosystem with over $56 million dollars in liquidity pools, fueling the development of decentralized exchanges like Balancer.

Last week, Balancer released their governance token (BAL) and it has exploded in value. As of last Thursday, BAL was up 157% since its release on the main net last week. While BAL has had tremendous success thus far, one of the problems with the BAL token is its’ inaccessibility. When searching for BAL in Uniswap, nothing appears. Instead, investors must navigate to Etherscan.io, a block explorer, find the token contract address and paste it into Uniswap, allowing BAL to appear and be accessible for trade. BAL can also be found in a DEX aggregator called 1Inch Exchange.

The success found by the Bal and COMP tokens in the past two weeks signify significant momentum being gained in the Defi space. Investors must make note of these as well as future developments in the Defi space as these platforms are driving the future of cryptocurrency trading.

By Jacob Stelter