Binance Hack Raises Security Concerns for Crypto and Banks

Um, I think number one, this is like a, a s- uh, a real wake-up call for not just crypto, but for the overall, the financial system overall.

Uh, if crypto... If a, a crypto exchange can be hacked, banks are in a worse position, in my opinion.

Um, uh, Binance, crypto industry are fir- probably the first tier of, uh, hacking targets. Um, especially Binance being the largest exchange with the largest amount of crypto, et cetera.

So we, we're always gonna be attacked first.

Um, but attacking us have very high rewards, whereas, uh, attacking banks, sometimes they can change ledgers and they can get away with, with some stuff.

Uh, but, um, uh, the, it's, the rewards are not the same as crypto, so we get attacked first.

But the banks are not safe from, uh, security, uh, the, from the security attack ability i- increases, uh, with AI. So, um, you actually kind of, in some sense, it actually kind of merges the, the two industry together.

Also, with this ins- uh, incident, um, I think there's now kind of a common understanding that now what impacts crypto may actually have impact on the, uh, wider, uh, industry or wider global financial system.

Um, so on the same day when the Binance hacked, uh, there was a lot of c- uh, the stock- traditional tech market, the stock market was dropping. Uh, the tech stock were, were, were dropping.

Not because of our hack, uh, I think, but, you know, um, because, uh, because of, uh, certain, uh, issues in, in tech stocks.

But I think the hack actually probably contributed a little bit to the psychology of it. Like, no, are s- our, our system or are, is any system in the world secure? So this is not just a crypto problem.

This is actually m- actually a much wider, um, information security problem. So, um, yeah, so I think, uh, um, uh, yeah, so this does, uh, shake some confidence in crypto, in, uh, security, but this is a broader thing than, than crypto.

So yeah, it kind of unites the, uh, uh, crypto together with, uh, traditional finance.

Right. So in some ways there's a... I don't know how to explain it really well.

The, the, it actually bridges the two together.