Since the surge of BitCoin to $20,000 back in December 2017, the cryptocurrencies are becoming a mainstream currency in so many countries. People are slowly adapting themselves with the digital currency. Even though the value of BitCoin fell to its all-time low in 2018, it doesn’t make any significant impact on the cryptocurrency and blockchain industry.
Apart from these ups and downs in the value of coins, there is a lot more about this cryptocurrency. The cyber attacks are one of the main issues that the cryptocurrency industry is facing now. According to the statistics, in 2018 the cryptocurrency investors lost more than $1.7 billion worth of coins (probably even more) due to these cyber attacks.
Be it phishing, hacking, SIM swapping or any other cyber attack; the investors have lost a fortune in the digital currency industry. These statistics are enough to prove how much danger the cryptocurrency industry is suffering from.
A cryptocurrency is a form of investment which had a decentralized platform with so many other benefits. The security threats in such platform have come as a surprise for users. The users can send their money to others without any third party validation with the help of blockchain technology. But the same industry is vulnerable to different kinds of security attacks. But the traditional banks have never seen such kind of security threats, what is the reason for this?
The main weakness lies in crypto exchange services. Even though the cryptocurrencies are decentralized, the exchange platforms that people use are centralized only. They are the main reason why cryptocurrency has fallen prey for hackers. These centralized platforms are not properly regulated similar to the traditional financial institutions which have led to these threats.
950 million USD worth of cryptocurrencies are stolen from exchange platforms, and this proves the setback of exchange platforms.