The cryptocurrency industry seems to be going through a number of changes lately, but one of the most surprising is that one San Francisco-based cryptocurrency exchange is stopping its support for what are known as multisig vaults. For those who are unaware, these are vaults with multi-signature access. Therefore, the last day that individuals will be able to access the vaults is April 19, 2018.
In addition to shutting down existing vaults, the company has already stopped the creation of additional vaults. The reasons behind Coinbase’s moves is, as most people can guess, a lack of popularity and usage. It seems that people are just not interested in the concept of multisig vaults and therefore, any investment by the company concerning multisig vaults development and creation is not worthwhile or economical.
The good news is that the end of multisig vaults does not necessarily mean that the company is shutting down its effort to invest its resources elsewhere. To the contrary, the company is thinking of reinvesting the funds into its platform, which is the most critical aspect of its operation to its customers.
Those who currently have funds in Coinbase vaults should act fast. They can access their funds with their two keys before the company shuts down its vaults. In addition, upon accessing the funds, they should be withdrawn before the closing date. Once the date passes, the only way to potentially access the funds is through a third-party open-source software that is not controlled by Coinbase. Rather than put one’s funds at risk, it is best to take action as soon as possible.
Another point to keep in mind that the closure of Multisig Vaults by Coinbase signals that the cryptocurrency industry can change rapidly and users’ funds are not always completely safe. The best thing to do is to be proactive and to monitor one’s funds well.