The Bitcoin exchange Coinbase has moved a total of five billion US dollars in the crypto currencies Bitcoin, Ethereum and Litecoin in recent months to make its exchange more secure.
The aim of all these crypto trader movements was also to work on cold storage security for the crypto currencies:
„In our latest version, which was first introduced with Coinbase Custody and now takes over the entire cold storage at Coinbase, we start with a secure crypto trader basis. This has a strictly controlled and tested key generation. We are also expanding it with a globally distributed system for storing keys and approving transactions.“
What we already suspected has now been confirmed: The Bitcoin whale that has moved so many BTCs in recent weeks is called Coinbase. According to a blog post from the stock exchange, they were the largest movement in crypto currencies ever made. Accordingly it is said:
„Coinbase recently moved five percent of all BTCs, eight percent of all ETHs and 25 percent of all LTCs in circulation (among many other assets) in what we believe to be the largest crypto-migration in existence.
New system to work with all crypto currencies
As the company further states, the new system makes it possible to secure crypto currencies of all kinds. In addition, the procedure had been planned for a long time. As Coinbase reports, the team had already agreed with the authorities, security teams and regulators before the great coin movement. It is said that this was the case:
„We started planning months before the actual movement and involved almost every Coinbase member in the process. We carried out risk assessments, developed monitoring plans and carried out test migrations until we were sure that the live migration would go smoothly.“
Speculative risk over Bitcoin whales was known
The operators were apparently aware that the movement could lead to speculation. According to Coinbase, the fear was that there might be uncertainty in the market. For security reasons, however, it was decided not to make the matter public:
„One of the risks we identified early on was the fact that our migration could be confused with a vulnerability or a large merchant preparing to sell a significant amount of crypto currencies. In any case, we were concerned that market uncertainty could lead to price fluctuations. On the other hand, we were concerned that too much attention would allow potential attackers to plan and execute attacks during the migration.“
The fact that the movement of coins has now come to an end could hardly have come at a better time. The crypto market is currently on the upswing and the Bitcoin exchange rate has now exceeded the US$ 4,100 mark.