Why crypto exchanges should care about their security: the case of Bithumb

Today’s world is all about reputation. Remember Molly’s Game? Thanks to her impeccable reputation as an Olympic-class skier, nobody suspected that she can run underground poker business.   

The same story with crypto exchanges. One may trade on one of the TOP-10 not realizing that it has listed a scam token. 

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The South Korean crypto-exchange Bithumb listed the cryptocurrency Popchain (PCH). Trades will begin tomorrow. Hacken does not take the responsibility to give any financial piece of advice, still we can’t but share the solid facts why buying PCH is not the best idea. 

1. Let’s observe the trade volume of PCH on CMC. Oops! Neither Coin Market Cap, nor any other reputable source contains information on this altcoin.
2. Popchain and the Bithumb Coin share the same founders. 
3. South Korean journalists found out that all PCH was kept on 18 wallets. Notably, 90% of PCH belonged to only two of the wallets. Later the coins were redistributed to 222 addresses, but 10 wallets still contain 92% of all tokens.
4. Although Popchain was placed on the GitHub, no real changes were made to the project code. All the edits involved deleting some code lines that were quickly replaced with data from the repositories of Bitcoin, Monero, and Dash.
5. Last but not least! A Chinese exchange listed PCH yesterday in spite of Bithumb stating to be the first exchange to list it.

There is a piece of unconfirmed data that Korea Blockchain Association has already advised Bithumb reconsider the listing of PCH. 

In turn, Hacken appeals to Bithumb and any other crypto exchange: 

• do take care of your security;
• do take care of your clients;
• do take care of your reputation.
  

Silk Road, MtGox, Cryptsy, Mintpal, Bitstamp and 6 other crypto exchanges were hacked due to the lack of cybersecurity. Crypto Exchange Ranks is on its way and it WILL change the rules of the game. 

CER, yes, CER!