NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Why Winklevoss Twins Fear Investors are Losing Confidence in Crypto

Davit Babayan
Davit Babayan
6 years ago
2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

The crypto industry is currently going through trust issues, according to Cameron and Tyler Winklevoss.

The Gemini crypto exchange founders, otherwise known as the Winklevoss Twins, said that investors were less confident about investing in cryptocurrencies following the shutdown of QuadrigaCX. The Twins demanded more inputs from the US regulators to make the cryptocurrency market a safer place for investors, stating:

“There are a lot of carcasses on the road of crypto that we’ve seen and learned from. At the end of the day, it’s really a trust problem. You need some kind of regulation to promote positive outcomes.”

QuadrigaCX, once a prominent Canada-based crypto exchange, announced shutdown this December after its chief executive Gerald Cotten died unexpectedly with the keys of $194 million crypto wallets. The company eventually lost clients’ funds in excess which, per the Winklevoss Twins, is what rattled potential crypto investors.

Better oversight, they said, would attract more investors and would further set bitcoin to the path of a long-awaited price recovery.

Twins Miss the Point

While the Twins could be right about strict oversight attracting big investors, as also covered by NewsBTC earlier, there is no evidence that QuadrigaCX fiasco could initiate a new negative trend. With trust, the Twins want to imply that QuadrigaCX would eventually undo crypto adoption as a whole. Instead, their focus should be more on educating crypto users about protecting their assets from potential hacks. Because, indeed, hacks do not discriminate between regulated or unregulated exchanges.

https://twitter.com/AR99092110/status/1105085209249308674

The reason why QuadrigaCX users lost funds was that they handled control of their assets to the exchange. In no way, a centralized entity should be able to gain hold of someone else’s cryptocurrencies. That’s the main logic bitcoin propagated via its original whitepaper. Centralized exchanges never did enough to reduce counterparty risk. Since Mt. Gox, the crypto industry suffered plenty of hacks, leading to the loss of billions of dollars worth of crypto assets. The hacked platforms included BitStamp ($1.43 billion), BitFinex ($900 million), BitGrail ($170 million), CoinRail ($40 million), amongst others.

In all the cases, crypto traders trusted exchanges to store their money. Nevertheless, all of them failed to provide careful custodianship. These exchanges continue to control users’ assets, and that is where the core problem lies.

Control is Confidence

The rising number of decentralized exchange projects (DEX) indicate that – in the future – traders would gain 100% control of their crypto assets. Also, these exchanges would practically do the job of a centralized exchange but without designating power to a single party. That includes everything from capital deposits, order books, order matching, and asset exchange.

Nevertheless, DEX would need to catch up when it comes to handling a large number of volumes and supporting features like stop loss and margin trading. And for active traders, centralized exchanges will remain a go-to option. However, the best they can do to ensure utmost protection is to keep only a small part of their holdings on their public wallet.

While a stricter regulatory framework, as the Winklevoss Twins, would still be useful, one cannot risk exposing their funds to lengthy court procedures in the event of a hack.

Not your keys, not your bitcoins.

Tweet123Share219ShareSend
Davit Babayan
Davit Babayan

Davit Babayan

Davit Babayan is an Armenia-based expat balancing the academic life of a software design engineer with the experiences of a financial technology journalist. He aspires to be a full-time columnist and wants to write a book that would be called, "A Homeless Who Found Bitcoin."

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

트럼프, 백악관 연설서 비트코인 지지… BTC불 토큰 수혜 볼까?

트럼프, 백악관 연설서 비트코인 지지… BTC불 토큰 수혜 볼까?

도덜드 트럼프(Donald Trump)가 백악관 기자회견에서 비트코인을 다시 극찬하며 지지 입장을 밝혔다. 그는 비트코인이 ‘놀랍다’고 표현하며 경제 전반에서...

Soyeon Lee 30 minutes ago
XRP

Insane Or Insightful? VC Firm Says XRP Could Reach Nearly $9,000 In Just 5 Years

US regulators and market watchers are eyeing a fresh valuation study that puts XRP on track for a dramatic price...

Christian Encila 1 hour ago
Strong Ethereum Accumulation Detected: LTH Buying Heavy During June Consolidation

Strong Ethereum Accumulation Detected: LTH Buying Heavy During June Consolidation

Ethereum is trading above $2,400 after enduring several days of volatility and uncertainty. The price has managed to stabilize despite...

Sebastian Villafuerte 2 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Bitcoin Price Holds Steady

Bitcoin Price Holds Steady — Bullish Monthly Structure Suggests Rally Continuation

Aayush Jindal 19 minutes ago
제미니, 비트코인 대량 보유한 MSTR 주식 토큰화… 다음 유망 알트코인은?

제미니, 비트코인 대량 보유한 MSTR 주식 토큰화… 다음 유망 알트코인은?

Soyeon Lee 24 minutes ago
Dogecoin

Dogecoin Under Pressure: Only Top 10 Coin Where Loss-Taking Exceeds Profit

Keshav Verma 28 minutes ago

Premium Sponsors

Press Releases

  • 仮想通貨プレセール残り24時間で800万ドル目前 次の100倍銘柄となるか?

    ...

    11 hours ago
  • 1ドル以下で注目される仮想通貨おすすめ、Solana系トークンに割安銘柄あり?

    ...

    11 hours ago
  • Най-добрите криптовалути преди...

    12 hours ago
  • リップルとSECの訴訟終了後に注目すべき新しい仮想通貨プロジェクトとは

    ...

    12 hours ago
  • BTC

    仮想通貨 おすすめ:BTC Bull...

    12 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.