Entrepreneur Uses $67 Million Life Savings to Get a Cryptocurrency Exchange

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Previously this month, it was exposed that Eric Cheng, a Singaporean entrepreneur, invested all of his life cost savings and sold his properties consisting of two Rolls Royces, Lamborghini, Ferrari, and a Porsche to obtain an One Hundred Percent stake in a Japanese cryptocurrency exchange called BitTrade.Why Cheng was Prepared to Take the Risk Less than a week ago, Bithumb,

South Korea’s biggest cryptocurrency exchange, suffered a security breach, losing more than$30 million in consumer funds kept in digital assets such as Bitcoin and Ethereum. The Bithumb team officially divulged that the business will fully compensate its clients with company funds kept in cryptocurrencies, which as of June 2018, are worth$ 450 million.”Bithumb has been administering company’s asset and clients’property, and all clients’ cryptocurrencies as well as KRW possession are securely saved on cold wallets and banks respectively. Additionally, we want to make sure that Bithumb currently has about 500 billion KRW worth of company funds,”said the Bithumb team.However, for small cryptocurrency exchanges, it is difficult to cover losses took place in hacking attacks, specifically if the amount hacked is larger than the company’s existing capital. For example, the biggest cryptocurrency exchange in Japan referred to as Coincheck lost$450 million worth of NEM in a current hacking attack and the failure to pay back financiers led to the exchange declaring bankruptcy.Hence, there are risks of obtaining a cryptocurrency exchange, despite its high profit margins, as extremely skilled and talented developers, security specialists, and IT professionals are required to supervise the exchange. Even Coincheck, formerly the most significant exchange in Japan, admitted that its hack was resulted by the company’s lack of security experts.Cheng, who invested all his life savings worth$67 million and then some to obtain BitTrade said he does not regret taking the risk and is pleased with his acquisition.

“The cryptocurrency industry is growing exponentially. Versus this background, the secret to recording the increasing need is having a well-regulated and certified clothing. With this Japanese FSA-licensed platform, I will work carefully with the regulators to scale this platform internationally, “Cheng said.It is most likely that Cheng strongly pressed his strategies to purchase BitTrade because of the regulative state of the exchange. BitTrade remains as one of the lots cryptocurrency exchanges in Japan that are certified and authorized by the Financial Solutions Company(FSA), and the process of being authorized by the federal government agency to run as a digital asset exchange is costly and difficult.Accumulation Duration The cryptocurrency market has actually entered a bear cycle in the middle of a 70 percent correction. Significant cryptocurrencies like Bitcoin and Ethereum that have actually been less unpredictable against reserve currencies like the United States dollar and euro in contrast to small cryptocurrencies have fallen 65 percent from their all-time high.Still, business owners like Cheng and financiers in the public market are ready to take threats and express interest to the cryptocurrency market. Today, Digital Currency Group CEO Barry Silbert, who is involved in some of the biggest cryptocurrency companies in the market including Coinbase and Blockchain, has stated that Grayscale, the financial investment arm of DCG, had the very best fundraising week in 2018, raising more than$ 20 million in a single week.The post Business owner Uses$67 Million Life Savings to Get a Cryptocurrency Exchange appeared first on NewsBTC.