if xapo would cover losses of a hack with their own reserve. then i have 2 questions
1. why are they not securing customers funds in the same manner as their own reserves, for them to think customers funds could be lost but their reserves could not be
2. why if customers funds are just as secure as their reserves, would xapo think that their reserves would not also be taken, ni which case there are no funds left to cover customer losses.
in my eyes its either customer funds are not as secured... which needs to be fixed
or
xapos own funds are highly secure just like customer funds.. which case xapo needs another layer of security incase both pots are raided
anyone can say that customer funds are secure.
bitfinex said customer funds are secure by 3 methods
1. multisig with keys on different businesses/services (hot or cold more secure than standard transaction keys in single location)
2. cold store of 99%
3. insured by bitgo
but on the day of the "hack" all three failed
so nothing offers me any comfort that xapo in a scenario of a hack would not have their own funds at risk. or if their own funds are more secure than customer funds. you have to ask WHY!!.
1. why are they not securing customers funds in the same manner as their own reserves, for them to think customers funds could be lost but their reserves could not be
2. why if customers funds are just as secure as their reserves, would xapo think that their reserves would not also be taken, ni which case there are no funds left to cover customer losses.
in my eyes its either customer funds are not as secured... which needs to be fixed
or
xapos own funds are highly secure just like customer funds.. which case xapo needs another layer of security incase both pots are raided
anyone can say that customer funds are secure.
bitfinex said customer funds are secure by 3 methods
1. multisig with keys on different businesses/services (hot or cold more secure than standard transaction keys in single location)
2. cold store of 99%
3. insured by bitgo
but on the day of the "hack" all three failed
so nothing offers me any comfort that xapo in a scenario of a hack would not have their own funds at risk. or if their own funds are more secure than customer funds. you have to ask WHY!!.