Security is a key topic in the crypto world. Even some of the world’s most important self-custody platforms like OpenSea are susceptible to attacks and malicious behavior. Continue reading to learn why security should always be your top priority. Also, take a look at a serious attempt at phishing on OpenSea.
What is self-custody?
Essentially, self-custody in crypto refers to holders’ sole responsibility to handle and store their information data such as private keys. Self-custody platforms do not store any private keys. They delegate the responsibility for their protection to key owners.
Information about the OpenSeaphishing Attack
Phishing refers to a form of malicious activity where the victim is tricked into giving out confidential information or credentials. It’s usually done by using fake communications. Phishing is a serious threat even today, and it’s also one of the hardest attacks to discover, as it’s disguised as ordinary messaging.
To demonstrate how real this issue is, here’s the recent case of OpenSea, one of the most important Non-Fungible Token (NFT) marketplaces of its time. Official reports claim the attack on 32 platform users resulted in damage to their assets. The company’s CEO, David Finzer, highlighted that the attack is likely not directly connected to OpenSea’s platform, and users signed the malicious action elements somewhere else, which just underlines the significance of keeping your sensitive data safe when using a self-custody platform.
Overall, while some rumors said that the stolen value was somewhere in the $200M range, David Finzer mentioned that the address, which they believe to be the hacker’s, has $1.7M to its name, which is still an outstandingly high figure.
What is the point of safety?
With the advancement of technology came the progress of hacks as well, and so nowadays, it’s more important than ever to take all the necessary precautions that aim to prevent such events. This is especially true when using self-custody platforms, since it’s the users’ responsibility to safeguard their private information, including their private keys.
Safety should always be the first priority. The more money one has, the easier it is for hackers to target you. If security is not taken care of, your hard earned funds could disappear faster than you think.
Safety implications of trading
When trading cryptocurrency, whether on a central exchange (CEX) or decentralized exchanges (DEX), safety is key. It is a rare platform that places enough emphasis on this subject. FOMODex (a multichain automated marketmaker (AMM) that supports Ethereum (ETH), Polygon (MATIC), Binance Smart Chain (“BSC”), and Ethereum (ETH), is a good example of a DEX which meets high standards. FOMODex recognized that safety is the most important aspect of any DEX. Without it, all other measures are useless. FOMODex was created by its team to protect users, regardless of its multi-chain environment or high volumes of transactions. To further emphasize this, FOMODex launched as the first DEX that is regulated in the U.S., which means users’ protection is elevated, and grounds are provided for legal cases, should fraud occur. It is remarkable, given that U.S. regulators can be difficult to approve.
Final thoughts
Both theory and actual-world experiences have shown that safety is vital to dealing with cryptocurrency. With next-generation platforms, users realizing its importance, security will be the top feature that users seek when selecting where they want to do business.