The recent $200 million hack of Singapore-based major cryptocurrency exchange KuCoin has been making headlines, but the difference between this attack and others in the past has been the hacker’s blatant utilization of everyone’s favourite new crypto frontier – DeFi (decentralized finance).
The KuCoin hacker must have had a lightbulb moment after the crypto media outlet Cointelegraph published the piece Regulatory risks grow for DeFi as a ‘money laundering haven’ not two weeks ago. Bing!
Generally it seems that the true innovation occurring in financial service is happening in DeFi. Imagine redesigning all financial products from scratch? The possibilities are endless. With $1 Billion locked into DeFi at the beginning of 2020, the figure has been increasing rapidly, currently standing at close to $10 Billion – a 10x increase. This is a very young sector with most of the operators not exceeding even 9 months.