Cameron and Tyler Winklevoss brothers popularly known as Winklevoss twins has come up with an opinion that the crypto industry is now facing a crisis of faith of investors in crypto market. The reason behind this opinion is the happenings in QuadrigaCX exchange, they recommend to the regulators of US to make the crypto market safe to the investors so that cases like this doesn’t repeat again so that the investors shall build their trust on crypto market again.
QuadrigaCX, a case of Canadian exchange, the details reads as follows last year the CEO of the company Gerald Cotten , who was only access to the private keys of the funds died and took secrete behind him. , after his death the clients of the company realized that the assets were no linger theirs and had lost all access to their crypto assets as a result $194 million USD is stored in crypto wallet without access. The Winklevoss brothers believes that only with the regulation of government case like this might stop and Bitcoin price meets betterment.
Are Winklevoss’s Right?
The regulation may attract investors and their trust in crypto as law secures the investors from risking their investments, but the price of the Bitcoin was down before the event of QuasdrigaCX happened therefore its hard to prove Winklevoss brothers right, they are just narrating their opinion which lacks proof to prove.
Even in the presence of regulation the platforms can be hacked and the owners may loss their investment even if the CEO is alive and does not take the information of private keys of funds to his grave. There are several issues evolved with your money to centralized crypto exchange instead of just keeping in the wallet. Few those who lost their money in such hacks were Mt Gox, Bitstamp lost $1,43 billion USD, Bitfinex lost $900 million USD, all these losses were because the company was not good enough in protecting the funds.
Such problems arises when you do not want to let your money for exchanges for the reason your funds may be at danger , if you fail in taking care of your keys well it will be 100% on your fault. Which in turn scares institutional investors aiming for safe profit .
At the current phase we are left with a puzzle unsolved whether a regulation can build trust in crypto investors and attract more towards the market.