Huobi User Protection Fund: The Bad and Good Sides Of Old and New Generation Crypto Exchanges You Should Know
Every new immerging technology always come with its ups and down while many even argued that it do take approximate 20years for such to experience firmness and wide adoption. Cryptocurrency and its underlying technology Blockchain is not exempted from this interesting show and a lot of what could be called drama surfacing daily in the sphere like the Huobi user protection fund.
In this article, I will like to look at the past and present of crypto exchanges and the good and the ugly too. How far have things evolved and what should be in view what we journey further into mass adoption of crypto and its tech.
The Bad Side Of Old Generation Crypto Exchanges
If you have been in the crypto world or just came in but done a bit dig up you would have heard about different bad experiences of first set of crypto investors and traders via exchanges.
One of the most prominent bad side of old crypto exchanges and still generating news waves is the Mt. Gox exchange hack which saw the world’s leading crypto exchange just years back sunk just like the gigantic Titanic without any hope of been reinstalled. Even though investors keep lashing the management and founder with strokes of lawsuits until possibly some decided to stay of crypto entirely and watch the drama unfold daily.
Such experience is bitter and I believe new generation exchanges are now begining to handle things as serious business not just like the old exchanges. Most of this new exchange are putting up measure to secure their users fund and possibly compensate in cases of default has displayed by exchange like Coincheck after they recent hack that saw $500Million tolled out of their users NEM funds by hackers.
Good Sides New Generation Crypto Exchanges You Should Know
As mentioned above, these new generation exchanges seems not to be taking the past mistakes of their predecessors lightly and building new defence round about their platform to stay immune to what killed the old.
I will focus on one of good side in this article and my pick as case is Huobi User Protection Fund. Let see what is in it to traders on their exchange.
What is Huobi User Protection Fund?
Huobi User Protection Fund is an initiative by Huobi which involves creating a backup fund off the exchange mainly to cater for their users when there is any default like hack and loss of funds on their exchange which is not directly or solely caused by the users. It simply works like the Banks insurance fund with central bank in case of need to compensate customers for loses caused by the bank.
Things like this are essential for new exchanges to regain trust lost by traders in old exchanges.
Some of the ways Huobi achieves this are:
2) Keeping some percentage of the exchange earnings which eventually had grown past their current and possibly future user’s funds when all totally combined. That’s another green light for new age exchanges. Click to learn more on this here!
It is indeed interesting steps taking by new exchanges like Huobi, Binance, Okex and more to secure their users fund and even in cases of hacks they get compensated.
Disclaimer: Kindly do your research before you invest in any crypto project because the above is for information purpose only not as professional or legal investment/trading advise.
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