Crypto has been the most popular financial instrument in the past few years, especially during the COVID-19 pandemic. The idea of a digital currency has intrigued many, specifically our younger generation. It does have its harsh critics, but even billionaires such as Elon Musk and Jack Dorsey incorporate it into their companies. Another reason why people love crypto is because it’s decentralized, which means there isn’t any government or central bank in control of it.
However, safety still seems to be an issue. Recently, we saw the biggest theft in crypto history. Decentralized finance platform PolyNetwork reported that hackers stole 600 million dollars’ worth of cryptocurrency from them, and they tweeted asking for the hacker to return the money. No one has an idea on how the hacker managed to do this, but honestly, it’s an impressive feat considering how the blockchain works. This isn’t the first time something interesting like this has happened. If we look back to the Colonial Pipeline hack, the Justice Department managed to infiltrate the hackers’ wallet and recover a partial amount of the ransom money. Anyways, the hacker ended up returning most of the money, and said that he did it for fun as a challenge. If you are hacking the blockchain for fun, that is impressive, so somebody should try and hire the hacker as a white hat. Since retail investors were affected by this, lawmakers have called for further regulation into the crypto industry, which would provide an interesting twist. What do you think about the PolyNetwork hack?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.