Coinbase Transfers Biggest Amounts of BTC, ETH and LTC to Cold Storage Ever
The largest crypto exchange in the United States and one of the most relevant in the world today, Coinbase, has decided to take almost $5 billion USD in cryptos (mostly BTC, ETH and LTC) to its cold storage vault as part of an effort to make the company’s assets safer.
This huge transaction will be marked in history as the largest migration of assets in the history of the industry. 5% of all Bitcoin, 8% of all Ether and 25% of all Litecoin currently in circulation today are being transferred by Coinbase since the announcement of the migration in December 19.
Coinbase has affirmed that this proves the commitment that the company currently has with the security of its client’s assets. They are being transferred to a very secure facility.
The cold storage technology used by the company has been upgraded, which is the main reason for the migration. Now, it will use a “fourth generation” system with keys are even more secure than the ones used before and that are even harder to reach.
According to the original post made by Coinbase, the main reason to use a system like this one is that it prevents the problems that can easily be caused for when keys are lost or stolen. To ensure that the assets are safe, regular audits will be made on the vault to check if everything is actually ok.
Coinbase claims that the new system will help it to store any kind of crypto using the same service without compromising the security of the assets. This is a huge upgrade for both the security and the management of the crypto assets that the company has.
While movements like this can scare investors sometimes as they might fear that something is happening, Coinbase has affirmed that it has not talked about the movement of the assets before not to give hackers any chance to try and take these assets.
The move was being prepared in secrecy for months within the company and involved most of the staff. It lasted four days but it was done mostly without any kind of issue. Now, the assets are being all secured in the new and more secure vault while the company is preparing for 2019.