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Ku Coin Security Incident Prompts Radical Change: How Crypterium Protects Its Assets Through Smart Contract Swap

26 October 2020 15:23, UTC
Ku Coin Security Incident Prompts Radical Change: How Crypterium Protects Its Assets Through Smart Contract Swap
By Andrey Sergeenkov

The atmosphere around DeFi assets is heating up. Following the breach of the crypto exchange KuCoin, Crypterium, the growing digital asset provider, had 10 millions of its tokens leaked to hackers. Right now, the platform is about to take a radical step – from November onwards, all CRPT tokens in public use will be swapped from existing smart contract to the new one. This move will inflict the deactivation of stolen assets, making them fully inutile for hackers and this way fulfilling the ultimate purpose of Crypterium.

Deep dive into the matter

KuCoin, one of the largest Singapore-based crypto exchanges, was raided on September 25 and suffered the loss of over $281 million. Together with many other victims of the breach, Crypterium bore damage of over 10 million CRPT tokens. Now, the primary concern of the platform’s team is to raise proper security measures which would not allow hackers to move stolen funds around.

In order to bring this plan into reality, Crypterium came up with the idea of swapping all existing assets to the new smart contract. At the same time, the core Ethereum blockchain foundation is going to be preserved, which makes no significant change to CRPT token functionality.

As a matter of fact, the idea of swap applies only to the tokens unaffected by the hack. The purpose behind the move is to technically drop stolen funds out of token’s total circulation, thus making them unsuitable for hackers’ future use. All of these steps will be executed automatically by Crypterium itself so that users won't need to undertake any extra effort in order to get it settled.

First tokens to be converted will be taken from Crypterium Wallet, with storages on third-party exchanges like HitBTC, KuCoin and Liquid following only at a later stage. That’s the reason why the platform calls all its users upon returning CRPT assets to the company’s wallet not later than November 23, 2020, 00:00 UTC. For the benefit of all customers, the fees from Ethereum blockchain will be covered by the platform on its own.

What lies ahead of CRPT?

Once the swap is completed, users will be able to utilize CRPT tokens without any fear of being defrauded. This means the AI-based price prediction feature will be unconditionally opened for all users of Crypterium Wallet, allowing them to make predictions with 70% accuracy for a portfolio of over 140 digital assets. With a high degree of processing power, the system is capable of making complex calculations with respect to all influential factors, thus drawing a conclusion standing to reality as close as possible.

Another notable feature of Crypterium is its virtual VISA card, which can be used for purchases of goods and services with digital assets stored on users’ wallets. Possessing high functionality, Crypterium Card can easily be integrated within the virtual wallet like Apple Pay. This, according to the company, will allow reaching a maximum customer base, recruiting over 30,000 new cryptocurrency users worldwide. The possibility to acquire a card within a matter of minutes will also place it at a competitive edge with many other digital card providers, who may stretch the delivery of a card to up to a month.

All together combined, Crypterium is aimed at delivering the best customer experience of cryptocurrency, according to the team. One important factor is that it opens up the door to the digital currency space even for inexperienced users. This way, Crypterium contributes to the popularity of the digital assets which may open up the gates of banking to billions of people worldwide.


About the author

Andrey Sergeenkov is a cryptocurrency investor and trader. He covers DeFi, crypto, blockchain, and crowdfunding as an independent journalist.

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