Bitforex goes offline
Hi,
the theme for today's #februaryinleo, the initiative for increasing the interaction and the quality of posts, is about on crypto and crypto market, which falls under #cryptomonday.
Today, another exchange did a rug pull. Some might say, that it is just a phase and that they will be back, but the website of BitForex is unresponsive, the admins don't answer to emails and no withdrawals are pocessed.
For me this is definitely a rug pull. It might be a crackdown by the Chinese authorities, as the exchange is based in Hong Kong, and the legislation might be very strict. Somehow, I understand the strict control of exchanges by authorities, as the funds there are not anymore the users one. They belong to the exchange, as they have the keys.
In January former CEO Jason Luo, stepped down from the company, after he was in charge for 6 years. Quite strange to do this, and then the site goes away. On the 23rd, there was a massive withdrawal, worth of 57 million USD. After that, no withdrawals have been possible.
The Japanese regulators have banned it, as it was running without a license. This is another red flag, and for me one of the two possibilities described above, the rug pull, or the crack-down by authorities.
This might be another hit for the crypto market, as it is bad news, where the masses might fear the loss of money. No one likes to lose money. If rug pull news enters the market, it is seen as the whole crypto world is a scam, which is not. But it is amplified by ill willed individuals, who benefit from the bad news.
We need to show to our friends, family and basical all our network, that crypto is safe, it is an alternative to fiat and that most people can benefit from it. There is the first rule of crypto, not your keys, not your crypto.
This shall be the mantra for all, keep the keys safe, keep the funds, tokens and all related to your crypto, on your wallet, where you own the keys. Simple as that.
What updates do you have? Maybe you have a project that it is interesting, and people need to know about it.
This is part of the initiative #februaryinleo, where you can still participate, even if you missed the post from the start, like I did. All the details are in here and in here.
Source
Posted Using InLeo Alpha
Banning of exchanges is one thing they should all be prepared for. There should be a back up plan, as well as strick rules. If citizen are not violating a country's policy. I do not see any reason a reasonable country will be banning crypto related affairs.
Cheers