The post WazirX Hack Update: CoinDCX Unveils Rs 50 Crore Investor Protection Fund! appeared first on Coinpedia Fintech News
Subsequent to the WazirX cyberattack that washed off $230m, the competing crypto exchange coindcx
coindcx
sharjil.shaikh@coindcx.com
Centralised Exchange
has unveiled the establishment of a Rs 50-crore Crypto Investor Protection Fund (CIPF). This fund therefore seeks to act as a form of insurance for its customers in case there is a breach of securities on the company’s platform thereby increasing trust and security in the Indian crypto market.
Preventive method for strengthening security
CoinDCX CEO, Sumit Gupta said that the fund is a preemptive way of assuaging its clients and countering the sentiments that arose from the WazirX hack. “I think the case that happened in wazirx
Centralised ExchangeCrypto trading and Information
was very unfortunate. People don’t like to keep 50 per cent (in one wallet) as you don’t put all the eggs in one basket,” Gupta said to Money Control.
The CIPF is funded solely by CoinDCX, and at the start, will have coverage of up to Rs 50 crore. Prepared by establishing the fund, it will be replenished gradually by attaching 2% of the exchange’s brokerage income on a yearly basis. In this way, the fund is developed, and the required level of safety to attract investors is preserved.
Making use of the best practices in information security, the funds in the Cryptocurrency Exchange are stored across several wallets and custodians to protect them from various threats.
In extreme conditions of compromise, the CIPF will compensate those customers who have lost their money, hence guaranteeing the safety of consumers’ investments. Gupta reiterated that it’s a fund offered to customers at no charge and no subscription is necessary.
Additional security measures
Besides the CIPF, to secure clients’ assets, CoinDCX deals with custody providers with up to $450,000,000 in insurance. These affiliations also help secure user funds as they are put in cold wallets, which are protected from loss.
Now that CoinDCX has introduced the CIPF, it is raising the bar amid the Indian crypto market in terms of investor safeguard. This initiative is an indicator of the fact that the exchange is keen on the security of its user funds, and it seeks to ensure that all the customers can trade securely.
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