Vauld exchange key compromised raises fears similar to celsius and 3AC. Will the crypto market battle at the hands of the bear market.
Not your keys, not your crypto!When the days are bad, even eating healthy can lead you to a hospital. The reality is apparent in the crypto market at the moment . 3ACs, Terra Luna, Celsius, Voyager and crypto bridges compromised for funds. There’s a never ending domino effect which is crossing one after another in the crypto market. Vauld, A Singaporean exchange is the latest one to cross the line bringing uncertainty, fear and doldrums in the market.
What Just Happened?
A Singapore based crypto exchange Vauld has frozen crypto withdrawals from their exchange. Such events sound like a DejaVu in formation in the crypto world. One after another, exchanges are falling into a liquidity crisis. Users are the ultimate receivers in these cases. Vauld had earlier said that it had almost $1 billion in assets late in May, however, the exchange has faced a severe liquidity crisis lately.
Like the other protocols like Anchor, even Vault was providing unprecedented interest returns on stable coins. USDT, BTC, and DAI were some of the popular tokens that generated unprecedented interest. However, lately the interest has fallen to abysmally low levels. This has created chaos among investors compelling them to withdraw from the staking pools. These events created a negative atmosphere for the exchange and withdrawals have been banned.
Outcome or Final Take
Such events have raised concerns among the investors whether cryptocurrencies and exchanges indeed are decentralized. In the upcoming future, that’s why the need for Web 5.0 is also picking up pace which would help establish standards and protect users from misuse at the hands of the exchanges.