CoinDCX protection efforts are stepping up with the creation of a $6 million fund to keep customer money safe. This action comes after a big hack at WazirX, another Indian crypto company, where $230 million was stolen. CoinDCX wants to rebuild trust by setting up this fund.
CoinDCX Protection Fund, officially named the Crypto Investors Protection Fund (CIPF), is set to offer a safety net for customers in case of security breaches or unforeseen events. Sumit Gupta, co-founder of CoinDCX, stated, “This dedicated fund will provide an additional layer of protection, ensuring that our customers’ assets remain secure and intact.”
Starting with an initial allocation of 50 crores (approximately $6 million), CoinDCX plans to grow this fund by contributing 2% of its brokerage income over time. The fund will undergo continuous monitoring and annual reviews to maintain its effectiveness.
CoinDCX has also set up a governance framework to manage the fund’s credit and utilization, ensuring transparency throughout the process.
CoinDCX Protection Responds to WazirX Hack
The creation of the CIPF is a direct response to the recent WazirX hack, which saw over $230 million stolen, leaving the exchange without 45% of its customer assets. In the wake of this incident, WazirX attempted to implement a socialized loss strategy, allowing users immediate access to 55% of their assets while locking the rest in Tether’s USDT. However, this plan was met with backlash from investors who viewed it as an attempt to dodge full responsibility. WazirX ultimately had to abandon the plan.
CoinDCX’s initiative is part of a broader industry trend where crypto exchanges establish contingency funds to mitigate the impact of cyber attacks. These funds serve as a lifeline for customers and help maintain trust in the exchange.
Contingency funds like the CIPF are not a new concept in the cryptocurrency world. The sector has faced numerous cyber attacks since its inception, and many major exchanges have set up similar funds. Binance, for example, launched the Secure Asset Fund for Users (SAFU) in 2018, allocating a portion of its trading fees to the fund. HTX introduced a 20,000 BTC reserve fund in 2019, while OKX’s Risk Shield allocates a portion of its revenue to protect customer assets.
CoinDCX’s CIPF aligns with these efforts, showcasing the exchange’s commitment to customer security. The fund not only acts as a safety net but also demonstrates CoinDCX’s proactive stance in safeguarding investor assets.
CoinDCX Protection Restores Confidence
With the launch of the CoinDCX Protection Fund, the exchange aims to reassure its customers and the wider crypto community. The proactive measure comes at a crucial time when confidence in crypto exchanges is being tested. By taking this step, CoinDCX is positioning itself as a leader in customer protection within the Indian crypto market.
The fund’s ongoing growth and robust governance framework highlight CoinDCX’s dedication to transparency and security. This initiative sets a high standard for other exchanges to follow, emphasizing the importance of safeguarding customer assets.
CoinDCX’s commitment to security and transparency through the CIPF is a positive sign for the industry. It underscores the importance of protecting customer assets in an increasingly digital world.
Conclusion: CoinDCX Protection for a Safer Future
CoinDCX’s launch of a $6 million protection fund is a landmark move in the Indian crypto market. This initiative not only provides a safety net for customers but also sets a benchmark for other exchanges to follow. As CoinDCX continues to enhance its fund, it remains committed to transparency and security.
In a world where cyber threats are ever-present, CoinDCX’s proactive approach with the CoinDCX Protection Fund is a beacon of hope for investors, ensuring their assets are well-protected.
Stay connected with TurkishNY Radio for more updates on CoinDCX Protection and other major developments in the crypto world. This is a significant step towards a safer and more secure future for all crypto investors.
