Crypto security is back in the spotlight. As crypto bull cycles attract a wave of new users, there is a strong temptation to relax our guard in the face of the excitement surrounding centralized exchanges. Ian ROGERS, chief experience officer at Ledger, a global leader in hardware wallets, has warned of the dangers of managing funds through intermediaries. This warning is all the more relevant after the scandals surrounding centralized exchanges like FTX.
The temptation of centralized exchanges during bull cycles
Ian ROGERS, Director of User Experience at Ledger, expressed in an interview his concern about the tendency of users to neglect the security of their assets during phases of market growth. For the latter, “Every bull cycle brings with it a seemingly rational reason to compromise safety, self-holding, or both“This abandonment of good practices often results in crypto being stored on centralized exchanges, where users falsely believe their funds are safe. ROGERS emphasizes the importance of self-custody, and affirms that if we do not use this method, “why even care about crypto?“.
These warnings resonate particularly after the collapse of the FTX exchange platform, where users lost millions of dollars.
Increasing cybercrime risks
Beyond the issue of centralized platforms, Ian ROGERS also draws attention to the evolution of cyberattacks in the digital economy. According to him, “Every year we can say that it was the worst for cybercrime, and it will be true.“With the increasing sophistication of attacks and the volume of assets at stake, the risks to users are increasing. He strongly recommends the use of hardware wallets, such as those offered by Ledger, as well as “clear-signing” technologies, which allow users to verify transactions before approving them.
The importance of these security measures was highlighted in December 2023, when Ledger identified a critical flaw in some decentralized applications based on the Ethereum Virtual Machine (EVM). Exploited by hackers, this vulnerability led to the loss of $600,000 for affected users. This incident clearly shows that even decentralized technologies are not immune to cyberattacks, and underscores the need for investors to strengthen the security of their assets. In an environment where threats are constantly evolving, solutions like hardware wallets and clear-signing systems are simply essential to ensure the protection of funds.
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