Bull cycles trigger ‘seemingly rational reasons’ to hurt securities: Ledger exec
The cryptocurrency market has gone through regular bull cycles, but industry experts often warn of the security risks that come with this growth.
Ledger's Chief Experience Officer Ian Rogers spoke to Cointelegraph about these concerns in a Token2049 interview, highlighting how market growth can relax security practices.
“In every bull cycle, you have people who have some seemingly rational reason to compromise on safety, self-control, or both.”
Related: Revolut and Ledger Wallet Enable New Crypto Railroads in the EEA
Rapid expansion risks and centralized exchanges
Rogers discussed periods of expansion that quickly follow bull cycles, noting that many crypto holders prefer to store their assets on centralized exchanges rather than holding them themselves.
“If not self-governing, why crypto?”
Ledger exec raised concerns about the risks of centralized exchange dependence, especially during the recession, referring to the failure of the now defunct crypto exchange FTX.
“What they were doing was giving their money to someone in the Bahamas who would put it in a spreadsheet. That's not called crypto. This is called fraud.
Related: Mac users beware: AMOS malware clones wallet apps and comes for your crypto
Cyber security risks of the growing digital age
Beyond the scope of cryptocurrencies, Rogers pointed to a broader trend emerging as the incidence of cybercrime increases globally, with digital attacks increasing in frequency and sophistication.
“You could say this year was the worst year of your life for cybercrime, and you'd be right.”
To prevent and combat this growing threat, Rogers supports the secure handling of digital assets through hardware solutions and transparent signature technology so that users are fully aware of what transactions they are authorizing.
Related: Ledger CEO Explains What Makes Ledger Flex Wallet Secure
Accounting compensation for victims of exploitation
In the year On December 20, 2023, Ledger announced that it had identified $600,000 in assets damaged or stolen from users blindly signing decentralized applications (DApps) on the Ethereum Virtual Machine.
Several DApps, including SushiSwap and Revoke.cash, crashed on December 14, 2023, causing huge financial losses to investors.
In Ledger's announcement, the firm said it would fully compensate and compensate victims, and confirmed it was committed to achieving this “by the end of February 2024.”
Magazine: Where Solana's Critics Get Right…and Get It Wrong
