Kraken to Create Crypto Security Unit

Kraken's new security director Nicholas Percoco, "more than two decades worked as a practice and consultant" in security industry
27 March 2019   539

In the light of various incidents with hacking of trading floors and other services, Kraken intends to take a series of measures aimed at improving the security of its product and the cryptocurrency ecosystem as a whole. This is reported by Kraken's new security director Nicholas Percoco, "more than two decades worked as a practice and consultant" in this industry.

As a primary measure to increase security, Kraken introduced mandatory two-factor authentication for the accounts of all its users. The option has been available since September 2013, but until recently it was activated voluntarily. For authentication on Kraken, you can choose between Google Authenticator and YubiKey.

Percoco also said that he had developed a roadmap to ensure the security of the exchange for 2019 and later. Currently, the company does not disclose information about its plans, but promises to inform users about new features as they are implemented.

Also, the Kraken Security Labs subdivision will be formed on the base of the exchange, whose task will be to “increase the security of the entire cryptocurrency ecosystem by checking the vulnerability of third-party products, such as hardware, software wallets, etc.” so as not to harm the safety of their users.

Fake Trading Share to Reach 68%, - FTX Global

This figure, however, is significantly lower than what Bitwise's report and the discrepancy is explained by the difference in methodology
04 July 2019   972

The exchange of derivatives FTX Global and Alameda Research conducted a study that estimated the volumes of fictitious transactions (wash trades), presumably prevailing in many cryptocurrency exchanges.

The report says that 68.6% of trading volumes displayed by CoinMarketCap are fake. This figure, however, is significantly lower than what Bitwise Asset Management announced in March.

The discrepancy between the results in almost 30% of the authors of the new study is explained by the difference in methodology. So, FTX Global is sure that Bitwise used an too strict approach to data analysis, which is why a significant proportion of real trading volumes fell into the category of fake ones.

While our methods are not foolproof, we believe they paint the most accurate picture of the true nature of cryptocurrency trading volume that anyone has made publicly available as of yet.

FTX Global Team

The Alameda methodology involves verifying the authenticity of data on trading volumes on various exchanges based on six different parameters, including manual verification of information and comparison of order books.

FTX Global Website
FTX Global Website

In particular, the experts found out that some sites provided data on the volumes of foreign exchanges for their own, with a slight delay in time. Other platforms used more advanced techniques - for example, they introduced large fake volumes only against the background of many smaller orders, thus trying to hide the true state of affairs.

The main purpose of these tactics is to raise the platform higher in the CoinMarketCap rating, creating a false impression of its liquidity. It also sometimes allows for the ability to charge a higher listing fee.