The crypto market has been experiencing relative stability in 2019; as there were minimal price corrections, persistent market upsurges, thereby, raising the market capitalization of all the digital currencies. However, the crypto community also had to face negative press when the Bitfinex-Tether scandal took over and propagated uncertainty in the crypto markets.
In the latest episode of What Bitcoin Did Podcast featuring Peter McCormack, the former CSO of Bitfinex and Co-founder of Tether Phil Potter discussed about Bitfinex and the challenges it faced in its early days. Potter stated that managing a Bitcoin exchange was the toughest thing, as it was a market that was still in the process of developing with a 24/7 functional window. Moreover, the establishment of an integrated “dev team” was crucial for the organization as it was spread across the globe. As other exchanges had some sort of network where coders did the coding in an office, but Bitfinex was a decentralized company to traded decentralized currency.
Furthermore, Potter also explained that due to the dispersed setup, the exchange was operated in different time zones. So, it was essential for the company to have a set of guidelines and rules; in order to keep the exchange under surveillance. Potter also added that operating a Bitcoin exchange involved various risks and security was one the major challenge that had to be taken care of consistently.
Lastly, Potter pointed out that regardless of the extent of advancement in the security of coin development, hackers will always figure out how to take advantage of the system.