When looking back at the previous decade, the thing that will obviously stand out is the astronomical growth of cryptocurrencies. Bitcoin is easily one of the biggest currencies that you can find in the world. Furthermore, it has also been the fastest-growing digital currency, as both companies and countries continue to accept it.
However, one serious problem that cryptocurrency has always faced throughout its time has been regulation. Without proper regulation, the crypto market has very much been the wildest financial alternative ever. Prices are very volatile, and fraudsters are standing around every corner looking for their next innocent victim. And standing beside this serious problem is that of hackers.
Hacking was a serious issue in cryptocurrencies back in the day, especially when businesses were starting out in this sector. These companies did not have the tools or the experience to deal with the sheer level of these hackers. And as time has gone on, companies like Coinbase, which have been at the forefront of the crypto renaissance, have very much adapted to them.
However, there are hackers that can get the best of exchanges, even if they are as big as Coinbase. Even though hacks in the crypto market are decreasing, it can be a problem. Recently, Coinbase users fell victim to a massive breach that cost them their entire account. In total, about 6000 customers fell victim to the hack, which was dealt with quickly.
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As soon as the news of the hack broke, Coinbase went into overdrive trying to find out the reason for this problem. They also started to work on ways to reimburse clients for their losses. Within a week, not only were clients given back their old accounts but every single victim of the hack was reimbursed for their losses.
On the other hand, how the hack took place was even harder to find out. Fortunately, Coinbase was able to identify the vulnerability that led to the attack. Turns out that the hackers managed to sneak their way into the accounts of various customers thanks to their SMS service.
Upon finding out the reason for the breach, Coinbase immediately fixed the problem and had sealed up the vulnerability. No further complaints about accounts emptying up came to them, and customers all around were quite happy to get back to trading.
Even though hacking is a fairly serious issue in the crypto market, it is one that companies like coinbase have worked diligently to negate. They have been working very hard at reducing the instances of hacking events, as well as getting better at controlling the after effects. Overall, while quite serious, the hack did not set them back too much, as customers were reimbursed and started trading almost instantly.