Binance Plans to Re-open Withdrawals and Deposits Today
Changpeng Zhao (CZ), CEO of major crypto exchange Binance, has announced that the platform plans to fully resume deposits and withdrawals today.
As reported, Binance had suspended deposits and withdrawals as it worked to rehaul its security systems in the aftermath of a major hack on May 7, which resulted in the theft of around 7,070 bitcoin (BTC) from the exchange’s hot wallets — worth over $40 million at the time.
The CEO telling the public that he would reveal more information once the platform had fully resumed all of its operations. He thus briefly outlined that:
“Our team is making progress and has been working through the weekend. In the past few days, we have made some significant overhauls to our system, with a large number of advanced security features added and/or completely re-architected. We will share details on some of the changes later.”
This update represents the third official response from the exchange CEO since the incident took place — the first being a post-hack live AMA and the second being a short outline of measures being undertaken to mitigate the chances of future security breaches.
From Binance’s disclosures so far, it is known that the hack was reportedly premeditated and conducted by a range of tactics that included phishing and viruses to obtain a large number of 2FA codes and API keys.
The incident also sparked a further controversy when CZ publicly revealed he had considered — and rejected — the idea of responding to the hack with a contentious Bitcoin blockchain re-org approach: i.e. taking steps to incentivize miners to form a consensus to wield 51% of the network’s hashing power to reorganize the blockchain’s transactions after the loss.
In response to fervent community criticism, the CEO chose not to attempt the strategy — whose feasibility was in any case doubtful, according to some opinions — citing the likely reputational damage to bitcoin and threat to its immutability and decentralization principles.
To press time, Binance is ranked the fourth largest exchange globally, seeing a 24% decline in daily trade volumes over the past 24 hours. (Positive)
XRP Available for Coinbase’s New York Users
XRP is now available for trading for New York residents using Coinbase. It was announced in February that Coinbase is listing the cryptocurrency, however, at the time of the announcement, XRP was not available for trading in the State of New York.
With this announcement, the availability of XRP brings the total number of tradable assets for Coinbase’s NY users to six: bitcoin, bitcoin cash, litecoin, ether, ethereum classic, and XRP. (Positive)
Charles Hoskinson Partners with Polymath to Launch Security Token Blockchain
Charles Hoskinson, the founder of Cardano and co-founder of Ethereum, is partnering with Polymath as the co-architect of “Polymesh”—a blockchain that aims to become “layer one” for security tokens.
Trevor Koverko, the co-founder of Polymath, said that Polymesh is a blockchain that is looking to change how companies issue securities and track equity. Koverko stated:
“[Polymesh] is purpose-built, since security tokens have unique needs and characteristics that demand a specific foundation. Ultimately, we want to marry issuers, investors and regulators together, which is what the layer one architecture is designed to do.”
Building such a system is more a matter of compliance around tokenization and the treatment of data rather than challenging the classification of these crypto-assets.
Hoskinson suggests Polymesh has its sights set on more than just the cryptocurrency markets: “There are quadrillions of dollars of financial securities, and building a blockchain to secure them is an incredibly exciting task.”
Polymath currently operates on Ethereum but is working on deploying its own blockchain because of limitations of the network.
Koverko noted: “All the best features of Ethereum are actually bugs for security tokens. We see a coming stampede of security tokens, but it’s more complicated than the first wave of utility coins due to all the regulations, compliance issues, and data.” (Neutral)