Bancor urges token issuers to follow their ‘example’ after hack

On 13th July, Bancor, the decentralized exchange platform released a statement on their official blog. The platform, which was hacked on 10th July, stated that a thorough investigation is in progress. They announced that they will release an updated statement as soon as they complete the analysis of the hack.

Bancor witnessed an attack at 00:00 UTC, with the platform reporting that the wallet used to upgrade the smart contracts was compromised. The exchange underwent a loss worth $23.5 million in Ethereum [ETH], Bancor Network Tokens [BNT] and Pundi X [NPXS]. They were able to retrieve Bancor Network Tokens worth $10 million which were stolen.

Guy Benartzi, the Co-Founder of Bancor, apologized to all the customers and supporters of Bancor regarding the hack. The Bancor team stated that the loss incurred by the platform will not have any negative impact on their mission or on their upcoming projects. They announced their upcoming features:

  • New types of blockchain
  • Stable coins
  • Derivatives
  • Community currencies

The decentralized exchange platform elaborated upon the measures which were used to retrieve the BNT. The emergency mechanism reportedly refers to the freeze/pause function which is found in many tokens such as EOS [EOS], Tron [TRX], Omisgo [OMG], Augur [REP] and many more. They added that this was the first time the exchange platform made use of this mechanism which protected them from facing further damage and also to recover the stolen BNT [worth $10 million].

In addition, the hacked exchange platform stated that all the token issuers should follow their example. They said:

“We encourage all responsible token issuers to follow Bancor’s example in transparently implementing emergency capabilities to protect their communities — and the industry at large — from thieves and criminals. Equally important is the ability of projects to develop upgradeable code which enables them to learn, iterate and more rapidly progress towards mass-market adoption of these important technologies.”.

The CEO of Bancor stated that they are forming a group of crypto defenders who’s sole responsibility would be to ‘fight criminals together’. Guy Benartzi also said that during the investigation of the hack, they discovered several attacks on other projects. The Bancor team has reached out to these projects and informed them about the exploits in their projects.

Following the hack, many market speculators and investors have started to claim that decentralized platforms are still not prepared for mass adoption. Some of them have also stated that they will shift to decentralized exchanges only when they have security measures on par with those of centralized platforms. Nonetheless, there are some crypto-investors and traders who are still showing their support to the exchange platform.

Axolotl_404, a Redditor said:

“Mainstream adoption will be a balance between security and decentralization. No mass adoption will occur if there are no security measures in place to protect users funds.”

To which, Crypticmeg123 said:

“I 100% agree, Crypto will stay as a speculative magical internet money if there are no elements of Centralisation, security measures like the pause/freeze function what Bancor implemented is what the industry needs if we want the general mom & pops to adopt this brilliant innovative new technology.”

Cryptomonicachick, another Redditor said:

“That is why I rate Bancor, I actually like their whole set up, the team,UI and their security, through all of this recent FUD the #1 thing that stud out to me is how quickly Bancor reacted to this situation.”

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