Entrepreneur Eric Cheng Sells Everything, Buys BitTrade Crypto Exchange for Over $67 Million
At the beginning of the month, a wealthy entrepreneur from Singapore, Eric Cheng, decided to use all his life savings to buy a Japanese cryptocurrency exchange known as BitTrade. It seems that Mr. Cheng decided to take a very risky decision and enjoy possible juicy profits in the future.
It is important to mention that cryptocurrency exchanges are very unsafe and may be losing more than the money they generate. During the last months, several exchanges have been hacked and some of them had to declare bankruptcy.
Some days ago, Bithumb, one of the most important crypto exchanges in the market, has been hacked by $30 million dollars. Fortunately for investors, Bithumb is able to give them their money back.
It is important for virtual currency exchanges to have specialists in security and IT professionals to oversee the exchange. Indeed, Coincheck, formerly the biggest exchange in Japan said that it got hacked because it did not invest enough in security experts.
Cheng commented about his decision to buy the crypto exchange:
“The cryptocurrency industry is growing exponentially. Against this backdrop, the key to capturing the rising demand is having a well-regulated and licensed outfit. With this Japanese FSA-licensed platform, I will work closely with the regulators to scale this platform globally.”
BitTrade is one of the exchanges that is regulated in Japan and has a license from the Financial Services Agency (FSA) from the country. The regulatory office has been taking several measures in order to control the market and protect investors against hacks and similar situations. The main purpose is to create a safe environment for people to place their investments knowing that their funds are in compliant companies.
At the moment of writing, the cryptocurrency market has lost more than 65% of its value in 6 months. Of course, this is a situation that happened not just once, but several times since Bitcoin’s creation.
Cheng and other investors are very interested in these kind of investments because of the high returns they may have in the short and long term. Of course, there is still an inherent risk in the market and the possibility to lose everything is still high.