• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • What is Bitcoin?
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
  • Play GamesTry
  • BUY BITCOINTry
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • What is Bitcoin?
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
  • Play GamesTry
  • BUY BITCOINTry
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Cryptocurrency news Bitcoin

Why Winklevoss Twins Fear Investors are Losing Confidence in Crypto

Davit Babayan by Davit Babayan
2 years ago
in Bitcoin, Cryptocurrency news
Reading Time: 2min read
Why Winklevoss Twins Fear Investors are Losing Confidence in Crypto
Advertisement
Nexo Logo
Listen to Article

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.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

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.

And they got rich within an unregulated crypto environment. Socialism. Hypocrisy.

— Proud White Legal Immigrant (@avr1avr) March 11, 2019

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.

Tags: bitcoin
TweetShare23
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
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."

Related Posts

router

Emerging DeFi Project Router Protocol Raises Seed Funding, To Launch Cross-Chain Farming Soon

26 mins ago
bitcoin dark web monero

Why The Dark Net’s Most Active Market Ditched Bitcoin For Monero

2 days ago
Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin Reclaims $40,000 as Powell Rubbishes Taper Tantrum Woes

2 days ago
Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin Logs Revenge Recovery as Lagarde Calls for Global Regulation

3 days ago
Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin Flickers Near $35,000 as Bond Yields Drop; A Detailed Outlook

3 days ago
bitcoin bar new york

Landmark Real Estate Listing Offers Two New York Bars For 25 Bitcoin

4 days ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Changelly

Changelly

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

SV-based Taraxa Revolutionizes Legacy Data Auditing With Mathematically Provable Audit Trails

January 15, 2021

Kickoff Your DeFi Journey With YOYO FINANCE – Their Token Sale Is Live

January 14, 2021

RAI Finance Pre-sale Finishes in 1 Minute

January 13, 2021

Newsletter Signup


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.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • What is Bitcoin?
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Gamble +
  • Play Games
  • BUY BITCOIN

© 2020 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.