Binance Hack and Highlights From CZ’s AMA Session

Following the unfortunate hack of leading cryptocurrency exchange, Binance, CEO Changpeng Zhao held an ask-me-anything (AMA) session on Twitter, albeit the meeting was well scheduled before the ugly incident.

Here, we bring your the biggest talking point from CZ’s AMA session following the Binance hack.

1. On the Security Breach

In with our earlier report about the Binance hack, Zhao explained that the hackers gained control to user accounts and created “withdrawal requests that did not without violating existing security checks”.

He, however, assured that all the user fund at the moment is secure as the Binance security team works on rectifying the issue.

Notably, too, CZ confirmed that Binance will pause withdrawals and deposits for one week to fix the security issues before the exchange resumes full operations.

2. Binance Will Consider Roll Back to Recover Lost Funds

Following suggestions that Binance could collaborate with large crypto mining polls in a reorg (51% attack) to roll back the stolen 7000 BTC, CZ noted that the exchange will closely consider such an option which he didn’t know was available until now.

However, the exchange will take funds from its self-implemented insurance policy, SAFU to replace the stolen cryptocurrency for the meantime.

3. Binance to Launch Margin Trading

Rumors of a possible launch of margin trading on Binance was also confirmed by the CEO during the latest AMA session.

Zhao revealed that the margin trading system will initially be tested by institutional clients that signed up with Binance.

The rollout for retail investors will then follow with CZ noting that it will happen “very soon.”

4. On Binance Stablecoin

Coinfomania earlier reported CZ’s response to a Twitter user who suggested that the exchange issues a stablecoin amid crisis with first choice Tether (USDT).

Careful what you wish for, CZ said then and during the latest AMA  session, he confirmed that internal discussions are ongoing for the possible issuance of a stablecoin.

However, he subtly warned that plans can change quickly and thus refused to deliberate on the scope or use cases for the proposed stablecoin.

5. Next IEO on Binance Launchpad

Investors on Binance’s IEO Launchpad had questions regarding which project would be next to sale tokens on the fundraising platform.

Although CZ failed to announce which project will be the next on launchpad following past successes, he expressed confidence that the next project will be announced this month.

Additionally, he confirmed that Binance will continue with the lottery format for tomorrow issuance since many users purchased tokens in the last round. The only possible tweak would be a reduction in the “BNB holding period,” CZ said without specifying the new time frame.

6. Binance Argentina Coming Soon Following Singapore Launch

With Binance seemingly on a fiat-to-crypto exchange opening spree, Zhao revealed that they will soon set up shop in Argentina later this year.

He cited regulatory compliance as a major priority for setting up such fiat gateways, evidenced by the fact that Binance Singapore till date still offers only one trading pair.

With the economic situation in Argentina and the increased adoption of cryptocurrency in the country, Binance’s decision to launch a fiat-to-crypto exchange in the country is not totally unexpected.

7. Will Binance Chain and DEX Become Open Source Later?

Binance Chain and DEX finally went live last month, roughly one year after the exchange first announced plans for the platform.

However, AMA participants questioned whether the exchange will make the platform open source later.

Zhao said that will happen in the future and not soon since other exchanges will eventually adopt the same code if they make it open source.

8. SegWit is on the roadmap but low priority

Bitcoin developers hoping for Binance to integrate (Segregated Witness) SegWit for BTC transactions will have to wait a little longer, CZ confirmed.

The soft fork implementation which is already available on U.S based Gemini is currently a low-priority task to Binance according to the CEO.

He thus did not provide a timeline on when Binance will introduce the feature.

Final Words

Going by CZ’s reassurances, it is very likely that the cryptocurrency exchange is in control following the binance hack, and would rather take the time to regroup and improve security on one of the world’s most used crypto platforms.

At this point, any suggestions of another Mt Gox experience looks pretty early with the crypto industry having come a long way since then.

Never miss out on our daily crypto news, stories, tips, and price analysis.  Join us on Twitter | Telegram | Facebook or subscribe to our weekly Newsletter

Comments (No)

Leave a Reply