CRPT Set to Conduct an Automatic Token Swap in Response to the Kucoin Hack

Crypterium, one of the crypto projects whose native token "CRPT" was compromised in the Kucoin hack, is set to swap the unaffected tokens in market circulation on a 1:1 basis. According to a press release on Oct 21, this move will prevent the hackers from realizing value in the stolen CRPT tokens.

The hack, which took place last month, exposed close to $280M held by Kucoin exchange in its hot wallets. CRPT tokens formed quite a chunk of this portfolio, with around 10 million tokens being affected. In an effort to enhance security and curb the transfer of compromised CRPT tokens, Crypterium will deploy a new smart contract to move the unaffected tokens.

Crypterium’s Chief Operating Officer (COO), Austin Kimm, also reassured on their commitment to offering a secure ecosystem:

Notably, Kucoin played an instrumental role by isolating the funds that were compromised during the hack. While the hackers managed to sell some of the proceeds through decentralized exchanges, a bigger part of funds were frozen before liquidation. The collaborative effort appears to be paying off given Crypterium’s plan to swap unaffected CRPT tokens.

The CRPT token swap will be an automatic process which means current token holders don’t have to initiate any operation manually. In most cases, a token swap would involve shifting fundamentals to another blockchain network. However, the CRPT token swap will only involve the creation of a new smart contract, while retaining its base infrastructure on Ethereum blockchain.

Technically, only unaffected CRPT tokens will be moved to the new smart contract; this will leave the hackers stranded with valueless CRPT tokens from the original smart contract. The swap will cover all CRPT tokens in circulation including those held by third party crypto exchanges HitBTC, Liquid and Kucoin, apart from the flagged tokens.

While the swapping process is expected to be seamless, Crypterium has advised CRPT holders to transfer their tokens to the platform’s wallet as they will be given priority. They are also offering to cover for the transaction costs associated by reimbursing the fees in form of CRPT tokens and depositing the same in a user’s Crypterium wallet.

It is quite noteworthy that this token swap will not alter the value or amount of CRPT tokens as well as trading operations. Prospects who might opt to send their CRPT tokens back to a Crypterium wallet have up to November 23, after which the platform will no longer accept external CRPT deposits attributed to the original smart contract. CRPT holders have been cautioned not to send funds to the original smart contract, but the new one.

Crypterium has also introduced a new virtual card for its crypto payment ecosystem that will allow users to start transacting in a matter of minutes. This service is integrated with traditional payment networks such as Apple Pay and merchant stores that accept Visa cards across the globe. According to the CEO of Crypterium, Steven Parker, the virtual Crypterium card flagship product is expected to scale the firm’s market share based on its flexibility and embedded features.

Last but not least is an AI-powered price prediction that has been in the works for the past year. Crypterium touts a 70% price prediction accuracy, featuring data on over 140 crypto assets traded in today’s markets. This feature, which is still a work in progress, can now process around 200 TB of data and also highlight probable outcomes as informed by multiple variables. Given such insights, Crypterium users have a better perspective on the associated market risks as well as possible entry points.

The move by Crypterium to swap its native token comes as an eye opener in the combat against rampant hacks within crypto. While some may argue that a token swap might have gone against the aspect of decentralization, the Kucoin hack revealed the collaborative power in Virtual Asset Providers (VASPs) working together to protect users.

Authorities are also jumping on the bandwagon in a bid to nab rogue players. According to crypto news site BTC Peers, the latest victims of such actions are OKEx crypto exchange clients, where funds were recently frozen by Chinese police. Going by these developments, it seems that the crypto ecosystem is growing into a more secure ecosystem based on a collaborative approach.