Lessons to learn from Zipmex’s troubles and the crypto market turmoil

[snoop1130]

 

The role of a digital asset exchange is to serve as a marketplace where investors can buy and sell their cryptocurrencies and other digital assets, while the revenue of the exchange comes from a service fee. But somehow Zipmex operates also like a bank.

 

Currently, nine digital asset exchanges have got licenses from the Securities and Exchange Commission of Thailand (SEC). They are Bitkub, Zipmex, Stang Pro, ERX, Upbit, Z.comEX, SCBS, TDX and T-BOX.

 

Zipmex ran into trouble on July 20 when it suspended withdrawals for two hours that evening, citing financial difficulties faced by its partners.

 

Full Story: https://www.thaipbsworld.com/lessons-to-learn-from-zipmexs-troubles-and-the-crypto-market-turmoil/

 

-- © Copyright Thai PBS 2022-07-28

 

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[SAFETY FIRST]

16 hours ago, snoop1130 said:

Zipmex ran into trouble on July 20 when it suspended withdrawals

I had coins with Mycryptowallet in Australia. 

 

It went pear shaped. 

 

Thailand, I can recommend coins.co.th. 

 

Edited July 29, 2022 by SAFETY FIRST

[simon43]

Your risk is almost zero if you hold your crypto in a 'cold wallet'. Why on earth anyone leaves their crypto in a hot wallet or on the exchange is beyond me.  I hold all my crypto (that's about $3 worth nowadays!) in my cold wallet aka a piece of paper with the private keys, backed up online in a truecrypt-encrypted email .

[SAFETY FIRST]

29 minutes ago, simon43 said:

Your risk is almost zero if you hold your crypto in a 'cold wallet'. Why on earth anyone leaves their crypto in a hot wallet or on the exchange is beyond me.  I hold all my crypto (that's about $3 worth nowadays!) in my cold wallet aka a piece of paper with the private keys, backed up online in a truecrypt-encrypted email .

I was reading yesterday a guy in Britain, lost his HDD 'cold wallet'. 

 

He's sending out a search party to the garbage tip, getting special equipment in to search for his many 1000's of Bitcoins 

 

https://www.cnbc.com/2021/01/15/uk-man-makes-last-ditch-effort-to-recover-lost-bitcoin-hard-drive.html

 

 

Edited July 29, 2022 by SAFETY FIRST

[peterfranks]

7 minutes ago, SAFETY FIRST said:

I remember reading yesterday a guy in Ireland or Britain, lost his HDD 'cold wallet'. 

 

He's sending out a search party to the garbage tip, getting special equipment in to search for his many 100's of Bitcoins 

 

That story has been going for many years, and not sure if it even is true

[SAFETY FIRST]

29 minutes ago, peterfranks said:

That story has been going for many years

This story is one of many that I read regarding lost cold wallets

 

30 minutes ago, peterfranks said:

not sure if it even is true

Some people don't believe that the world is round. 

 

[mjnaus]

1 hour ago, SAFETY FIRST said:

Some people don't believe that the world is round. 

Then, of course, there are those who believe every fairy tale under the sun.

 

Truth of the matter is, every half decent hardware wallet comes with a recovery method in the form of a seed phrase which can be used to regenerate the private keys. I have lost hardware wallets in the past and it never was a problem. Losing both your seed phrase and the actual wallet is a different matter.

[jacko45k]

3 hours ago, simon43 said:

Your risk is almost zero if you hold your crypto in a 'cold wallet'. Why on earth anyone leaves their crypto in a hot wallet or on the exchange is beyond me.  I hold all my crypto (that's about $3 worth nowadays!) in my cold wallet aka a piece of paper with the private keys, backed up online in a truecrypt-encrypted email .

It would seem to be overkill for $3

[hotchilli]

3 hours ago, simon43 said:

Your risk is almost zero if you hold your crypto in a 'cold wallet'. Why on earth anyone leaves their crypto in a hot wallet or on the exchange is beyond me.  I hold all my crypto (that's about $3 worth nowadays!) in my cold wallet aka a piece of paper with the private keys, backed up online in a truecrypt-encrypted email .

I'm too old school for anything crypto.

Everything I've got is in my ar$e pocket or the bank

[Caldera]

4 hours ago, simon43 said:

Your risk is almost zero if you hold your crypto in a 'cold wallet'. Why on earth anyone leaves their crypto in a hot wallet or on the exchange is beyond me.  I hold all my crypto (that's about $3 worth nowadays!) in my cold wallet aka a piece of paper with the private keys, backed up online in a truecrypt-encrypted email .

I think the problem with Zipmex isn't just that people left their coins in there, but let Zipmex borrow their coins in return for (promised lol) interest payments.

 

The interest rates being so high that they actually screamed "HIGH RISK!!!", but some people just got greedy and couldn't resist. Then it blew in their face. 

[simon43]

2 hours ago, jacko45k said:

It would seem to be overkill for $3

Sarcasm, sarcasm......

 

It must be at least $5......