Crisis or Opportunity
- The events of the past year exposed a huge weakness in cryptocurrency: it promises world class cryptographic security. But it delivers the opposite, fraud, exploits, abuse, theft and shattered dreams.
- Cryptocurrency, cryptographic security, wrapped tokens, cross blockchain trading, centralized exchanges and abuse of investors trust and ignorance.
- ‘These are complex issues, and up to this point, the lack of regulation and clarity in some of the worlds largest financial markets has discouraged companies from building and operating in these large markets.
- While these regions don’t have a monopoly on interest in cryptocurrency, they do have strict banking and investment laws, which provide many protections against the type of abuse, fraud and theft plaguing the cryptocurrency world.
- And unfortunately most investors from these regions assume they have the same protections for their cryptocurrency holdings that they have for their money in banks and stock investor accounts.
- When in fact they have little or no protection.
- Into this void of police and regulation has stepped thee most unscrupulous of people, who rob, steal and deceive.
- And it is into this void that I propose Good People step also.
- The reputation of cryptocurrency, and perhaps it’s future may be hanging in the balance.
- I realize those educated on cryptocurrency have no legal or perhaps no moral obligation to help newbies to cryptocurrency. But should we really do nothing to help? We have hoped for mass adoption for years, and now it is here, and it has been a painful tragedy to watch.
Someone or a group of people, who understand the cryptocurrency system need to pull together and help the new and less educated investors avoid the risks of cryptocurrency.
I call this: No Investor Left Behind
- Cryptocurrency and cryptographic is a type of security so good that no existing computer can break it.
- ‘Cryptographic security is bypassed by most centralized exchange deposits.
- Centralized exchanges have zero transparency about use of depositors funds.
- ‘I think we need to cultivate an attitude that your funds should only be on centralized exchanges as on-ramps to get fiat into crypto, then transfer your crypto offf an exchange to desktop or cold storage wallets.
- I think self custody of cryptocurrency is complex and the ever present danger of losing one’s keys and/or being hacked, leading to complete loss of cryptocurrency investment is a huge reason for the large amount of crypto left on exchanges.
- A viable alternative to using exchanges to safely and simply custody cryptocurrency needs to be built.
- I think this is an imperative to provide a easy alternative to centralized exchanges, self custody exchanges, which make money providing safe custody of crypto and processing airdrops.
Cryptocurrency Shared Custody Exchange
- I realize that this is going to be viewed by some as an anathema as in something to be hated and despised, because it is the opposite of the crypto ethos, independence, self reliance, self custody, your keys, and your crypto.
- But I think it’s time to face the reality that many, if not the majority of investors, custody their funds on exchanges, because self custody is to complex and to dangerous for them.
- I think the most important first step forward involves transparent shared custody exchanges, as an alternative to centralized exchanges.
- And these shared custody exchanges would guarantee your crypto is always there.
- Next each blockchain should prioritize education about blockchain, cryptography and custody of assets.
- What do you think?
@shortsegments
About @shortsegments
Shortsegments is a writer on Leofinance.io, a social media platform for memes, short form content, long form content, video blogs, and other content focused on cryptocurrency, the blockchain, non-fungible digital tokens or NFTs, and decentralized finance.
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