In case you missed it, on Friday the Buybit cryptocurrency exchange suffered a hack, losing 401,000 in Ether cryptocurrency, worth around $1.1 billion plus others worth over $300 million. The North Korean Lazarus Group is thought to be responsible. Looking a few years into the future, if someone sold a large amount of digital securities, wouldn’t that problematic with the hacking risks?
The answer is not really.
There’s a big difference between a decentralized cryptocurrency like Ethereum, and digital securities with an identifiable issuer. Most tokenized or digital securities that are issued in a compliant fashion retain some kind of control. That means if there’s a big mistake, a fraud or a theft, it’s possible for the issuer to step in to right the wrong. They can block the asset or potentially transfer the tokens to another person.
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