Originally published on: September 20, 2024
As the cryptocurrency market continues to experience regular bull cycles, the potential security risks cannot be overlooked. Ian Rogers, the chief experience officer of Ledger, recently shared his insights with Cointelegraph during a Token2049 interview, shedding light on the dangers that accompany market booms.
During periods of expansion that follow bull cycles, Rogers noted a concerning trend – many crypto holders tend to store their assets on centralized exchanges rather than opting for self-custody. This shift towards centralized exchange reliance poses significant risks, especially during market downturns, as evidenced by the collapse of FTX, a now-defunct crypto exchange.
Rogers emphasized the importance of secure self-custody of digital assets through hardware solutions and clear-signing technology to combat the rising threat of cybercrime. With global cybercrime incidents on the rise, the complexity and frequency of digital attacks are expected to increase.
In a recent announcement, Ledger disclosed a blind-signing exploit on Ethereum Virtual Machine decentralized applications (DApps) that led to the theft of$600,000 in assets from users. Popular DApps like SushiSwap and Revoke.cash fell victim to this exploit, resulting in significant financial losses for investors. However, Ledger has committed to reimbursing affected users by the end of February 2024.
To navigate the risks associated with cryptocurrency bull cycles, it is crucial for investors to prioritize security and adopt secure self-custody practices. By staying informed and leveraging innovative security solutions, users can protect their digital assets from evolving cyber threats.
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