Token Projects Unhappy with KuCoin for the Handling of the September Hack

November 16, 2020

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The new face-saving launch from KuCoin, a Seychelles-based crypto trade KuCoin has hacked two months ago for almost $280M, the 84% of the impacted resources have been recovered now. Some affected must be happy that the situation appears to be leading towards determination, while others might not be.


Leaving aside the conspiracy theories, passing dangers, and asserted absence of correspondence concerning the trade, the KuCoin debacle raises alarming issues around blockchain decentralization and how token ventures frequently depend on uncertain delegates.


After the hack, several projects whose tokens were stolen from the trade were forced to respond immediately and change their smart contracts, efficiently supplanting the stolen token with the latest versions called a token swap.


In some scenarios, it is possible to update the smart contract, reissue the token, and develop a similar blockchain state before the hack. Although, that is very different from a case where reissuing the token will create two tokens.


Most of the ERC-20 tasks are influenced by the KuCoin hack (around 60%) has bowed to pressure and updated their tokens. While it conflicts with the standards of those tasks to cover KuCoin’s back by refreshing their smart contracts or supplanting their tokens, they picked the simplest arrangement accessible to them. 


On account of DIA, exactly 3 million tokens were taken by the hacker, at an estimation of around $4 million, while this sum was not dangerous, the colleagues needed to observe pitifully as the hacker sold their tokens. 


Image Courtesy : Pixabay


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