In light of the recent string of major hard forks in the Crypto World, we would like to share with our users on how we deal with such situations.
What is Coinhako’s stance?
Coinhako prioritizes the safety of our customers and their funds when making any decisions in the event of a Fork. We will only adopt processes when we are certain that it will not compromise the safety of our customer’s funds.
We take these extra steps to ensure that we present our users with the most optimal of solutions that should benefit them to the greatest extent possible in such situations.
What measures does Coinhako take?
- Consultations
Prior to the Fork, we would consult with relevant Cryptocurrency-related companies and market makers before taking a stance on the situation. Any decision(s) to adopt a forked currency or change in process would then be thoroughly reviewed. The final decision would be made based on the collated set of criteria gathered from the external parties, in addition to our company’s own stance.
- Cryptocurrency Deposits and Withdrawals suspension
Typically, we would stop all Deposits and Withdrawals of the affected Cryptocurrency during a major fork and/or upgrade for a period of time. This is to ensure that all funds stored with Coinhako remain safe.
Some recent stoppages of Deposits and Withdrawals of Cryptocurrencies include:
i) Ethereum Byzantium Fork
On 16th October 2017, all Ethereum Deposits and Withdrawals were halted till 5.00pm
ii) Segwit/Bitcoin Cash Fork
On 1st August 2017, all Bitcoin Deposits and Withdrawals were halted for 72 hours. Further details on this fork can be found here.
We will also consider all other possible measures and alternatives that are aligned with our stance, where necessary.
What is a Fork?
For those that are unaware, a Fork is an event that signifies the separation of any one (or possibly more) Cryptocurrency. During a Fork, a Cryptocurrency can be split into 2,3 or more separate Cryptocurrency entities, depending on the circumstances.
Hypothetically, such separations could take place due to a myriad of factors. They also tend to be highly contentious in nature which is often the cause for the emergence of separate entities.
Why do Forks happen?
Think of it as a Democracy.
Cryptocurrencies are not faultless and like everything else, always have room for improvement. The progression of decentralized currencies, like Bitcoin, is debated amongst and decided by various entities and parties. This often leads to disagreements and hence, a separation during times of upgrades.
If you wish to find out more about forks kindly refer here.
Disclaimer: Please note that this post is purely informational. Should you have any further enquiries please do not hesitate contact our support team at hello@coinhako.com
