Soon… Users Of The Hacked Cryptopia Exchange May Get A ‘Rebate,’ But There’s A Problem
Soon Users Of The Hacked Cryptopia Exchange May Get A ‘Rebate,' But There's A Problem
January 14 was indeed a bad day for the New Zealand-based cryptocurrency exchange as it was on this day that the exchange lost around $23 million worth of user's cryptocurrencies to hackers.
After a few months of silence, the comprised exchange Cryptopia emailed its user base information regarding the jack, the operational status as well as the plans of compensating those who lost their funds.
Now It Seems There's A Problem
The exchange took a step to inform users that they were soon to receive a ‘rebate' on the lost funds and stated that more clarity was to follow at the end of March, but the details over the same are scarce. Despite giving a promise, Cryptopia is yet to come out with concrete details of how the process will go down.
The situation has left many to suggest that the compensation will be in fiat currency as per the price of cryptos lost during the hack. Now that it's already three days gone from the timeline the exchange had promised to give in-detail information, users are worried about what must be taking it too long.
So What's The Matter?
It's worth to note that Cryptopia has since been allowed to reopen in February, and as of last month it has enabled trading in over 40 different currency pairs. First, the worry is whether investors will expect a full refund, how losses will be calculated, and whether returns will be instantly or over time.
Perhaps, those are some of the logistics holding back the exchange from commencing the process as they have to ensure they tackle the entire situation correctly.
Or Maybe The Rally Is?
The past few days have seen various cryptocurrencies on a rally with others recording their year highs-like Bitcoin. Therefore, the compensation might be a difficult one to execute. For instance, when the hack took place, bitcoin's price was below $3,600 but currently is above $4,900.
The prospect that users who lost their funds will be compensated based on the price of each cryptocurrency at the time of the hack must be a hard one to swallow by investors. Undoubtedly, that will mean they would have missed the gains as a result of the recent growth.
Cryptopia is among the exchanges that offer the widest coins for trading with currently having more than 100 cryptos for trading. Therefore, going with reports of settlements being done base on the prices at the time of hacking, investors may have missed out on absolutely massive gains.
Although some may have fared worse than they were such as Dentacoin which has fallen by almost 65%, on the bigger picture, most of them are on a bully, and hence Cryptopia investors have to be sorry for possibly missing out on that gaining opportunity.
For now, the information over the process of compensation is yet to be clear which means a tussle struggle over the plan is likely inevitable. We may be about to see a similar case as to that of Mt. Gox scandal if any of the affected users seek legal action over the issue. But until then, the ball is still rolling.