Seeing the headline on a blog definitely gave me goosebumps because that’s a lot of information to process. This is the reason most people are against Centralized Exchanges because “not your keys not your coins”. Since they have been given the power by you to hold your money, they can do whatever they want with it.
The name of the company is called My Crypto Wallet, it’s an Australian crypto exchange platform that was founded in 2017. Reports state that people have been suspicious of the company back then in April when transactional activities were not going right. Imagine trying to withdraw your funds from the crypto exchange and it’s not going through, or waking up and checking your crypto only to see it had vanished. Lots of people made complains regarding the unpleasant experience they were getting g from the exchange platform .
How can lots of customers be making the same complain and you reply saying it’s a shill campaign, this was the response the exchange was giving to the press. This isn’t the first crypto exchange in the country to have a crash, few months ago, I remember some certain Australian crypto exchange crash, can’t remember the name, crashed with over $21 Million of people’s money. This will definitely bring scare and probably a bad reputation to crypto and the country. I’m not sure crypto exchanges will want to have their exchanges in the country because of bad reputation these collapsed crypto exchanges have brought.
The crypto exchange has been in existence since 2017 and I can’t help but wonder, was it a hack or is the company a scam. Even if they were scammers, why did it take them 4 years to exit. The company claimed to have over 20,000 users, does that mean that 20,000 users have lost their funds? What is the probability that they will get their funds back. The owners of the crypto exchange are currently silent on the whole issue right now, no comments from them.
Since the company was not under any regulation, I don’t think the authorities can get involved in this because the government has always been warning people about the risk of investing in cryptocurrencies.
Seeing things like this just gives me this wake up call vibes, to either leave my coins in a DEX or cold wallet. While leaving it in DEX sounds like a good option, the disadvantage is that it’s prone to being hacked. While a cold storage is the only left storage option, am scared of being clumsy and loosing my hardware.
Crypto exchanges are just medium to get the coins, it just saves you the stress of looking for people to buy coins from physically. Lots of people use them to buy the coins and store them on their DEX and Cold Wallets.
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How is that even possible to happen in a country like Australia? I remember the case of Cryptopia (NZ exchange) and there was a heavy campaign to refund people (I think that the case is still on) just to prove that there is a law OVER everyone...
But, if this goes through in Australia without authorities' involvement, I can't see the difference between, for example, Chinese exchanges or some from the US... And we know that everyone is throwing stones at Asian companies...
In the end, you are right about the saying “not your keys not your coins” and every hack/scam is another lesson for people to learn how to treat their money...
I have picked this post on behalf of the @OurPick project and it will be highlighted in the next post!
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As crypto space keeps growing, it would need necessary regulation, not too much not too little..
How much is necessary though?
That is what needs to be found!
Crazy stuff sadly! A lot of people got screwed that’s for sure. I’m glad I don’t use small ones but it’s sad for the small ones that are trying to expand and make a name for themselves.
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