Altcoin.io

Why does the cryptocurrency market need a secure decentralized exchange?

follower @ Altcoin.io

Published on Jul 16, 2018


A report was recently released about the amount of cryptocurrency that has been stolen by hackers over the past few years.

I thought this would make a great update as to why invest in Altcoin.io, why a decentralized exchange is the answer to stopping these hacks, how our approach is different than other decentralized exchanges, and how we plan to show our investors the highest return on your investment into Altcoin.io.

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Cryptocurrency exchanges, unlike stock exchanges, charge fees for trading and storing the currencies for customers. Traditional exchanges don’t hold securities. This difference has made the former attractive and vulnerable to thieves, or like "sitting ducks," according to the The Wall Street Journal. Already this year, more of the currencies have been stolen than in any other.

Read the full article from the WSJ here: https://www.wsj.com/articles/why-cryptocurrency-exchange-hacks-keep-happening-1531656000

How is Altcoin.io addressing the cryptocurrency hacks we continue to see?

Unlike a centralized exchange, we don’t store users tokens. Instead, users lock their tokens inside smart contracts secured by the blockchain. Smart contracts let our users safely trade cryptocurrency without involving a third party — not even us. Your private keys to access your tokens stay private, known only to you. You don’t have to give us anything.

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This is different from CoinBase as an example, a centralized exchange that made $1 billion in revenue in 2017. When users use dollars to purchase Bitcoin from CoinBase, the digital assets are stored within their centralized web-based wallet, not on the blockchain, so if they get hacked, users could lose their Bitcoin or any other digital assets stored. But since we store everything on a blockchain and don’t have access to anyone’s private keys, users have full control.

Why should you invest in Altcoin.io?

'I don’t know if there’s a silver bullet that will stop the hacking other than investing significantly in infrastructure and cybersecurity,' said Lex Sokolin, global director of fintech strategy at Autonomous Research.

A lot of cryptocurrency exchanges are centralized, which makes them vulnerable to theft. Since June 2011, about 30+ exchanges have been hacked, resulting in the loss of billions of dollars in tokens.

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As Bitcoin’s value continues to rise, we’re likely to see more of these hacks. These exchanges store digital assets in a centralized reserve, typically known as a “honeypot”, which is a single point of failure hackers love to exploit.

We’re building a decentralized exchange (DEX) that’s both easy to use and removes the single point of failure exposing traders to theft. With centralized exchanges, users’ coins pass through a third party, similar to an escrow account, and this is why hackers target centralized exchanges.

How do we plan to show our investors a return on investment?

By raising capital through Wefunder we're able to keep our project valuation low and leave options open for our DEX to be acquired by a larger centralized exchange, another cryptocurrency project, Bitcoin wallet, and more.

Considering over ~$750 million has been stolen from other exchanges this year alone, 3x the stolen amount in 2017, we believe this strategy makes a lot of sense.

Our mission is to bring the entire cryptocurrency community together to create a transparent, trustworthy, and honest market. We believe that will help take the cryptocurrency industry from where it is today, which is around a $250-$300 billion market cap, up to a multi-trillion dollar market cap.

Read more about Altcoin.io here: https://blog.altcoin.io/share-in-our-success-by-investing-in-altcoin-io-through-wefunder-c58198a2a4c...

Thanks for reading!

Andrew Gazdecki
CEO at Altcoin.io

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