$500 million cryptocurrency have been lost in a year (Bitcoin, Bitcoin Cash, Ethereum, Litecoin, NEM, Ripple)

Cryptocurrency investors have lost more than $500 million due to bad code. It seems like the foolproof code of cryptocurrency wallets as well as exchanges is what is working against it as well. In the last 12 months, cryptocurrency investors and users have lost over $ 500 million due to bad code.

Inherent problem:

The main problem with cryptocurrency wallet code is that once it is lost, it cannot be recovered. Any modification whether intentional or unintentional can break the entire code. Until and unless, there is a backup of the original code, it cannot be restored. With the change in code, the users will not be able to access their cryptocurrency. This is the reason why such a lot of money has been lost due to the changes in code.

BitGrail fault:

The recent one to join the list is the cryptocurrency exchange Bitgrail which is slated to lose around $ 170 million in the form of nano cryptocurrency. Owing to the bad code of the exchange, the cryptocurrency exchange became insolvent. The problem, in this case, was that there was a bug in the withdrawal mechanism. Owing to this bug, excessive money is suspected to be withdrawn from the exchange. This resulted in the balance of the exchange being diminished in a gradual fashion. The bug involved placing 2 orders and even before the execution of those orders, you will be able to withdraw the coins. After a few hours, the balance in the account was negative but by then, you will have got the withdrawals.

While this bug is pretty irresponsible but it stayed in the exchange for long enough to make it go bankrupt. The bug was widely circulated by people across chat groups as well as forums. Owing to this very reason, the money in the exchange was depleted.

Parity exchange:

The Bugs are not just limited to lesser-known cryptocurrencies. Even the dominant cryptocurrencies like Ethereum have been impacted by these bugs. One of the most popular Ethereum exchanges by the name of parity lost around $ 168 million due to a code being deleted by a user.

Till the time, the cryptocurrency exchanges become more responsible and take the right steps, the users can just hope that such bugs are limited. The cryptocurrency exchanges also on their part need to be more aware and proactive when it comes to detecting and fixing these bugs. Only when that happens, it will be easier for the investors to keep their cryptocurrency holdings completely safe. Source: bitcoin.com

Adam Webb is editor in Smartereum, blockchain and currency news, where he produces updates on Blockchain, Ethereum and other alternative cryptocurrencies.


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