Last night, CCN published a follow-up article to the on-going chain of events involving the HitBTC crypto exchange, its’ customers, and the fast approaching Proof-of-Keys event. If you do not already know what the PoK event is, you should become acquainted with it, simply due to what it can prove and how it can affect the market prices of cryptocurrencies.
The foundations for the Proof-of-Keys event date back to earlier this year when Trace Mayer, a well-known Bitcoin advocate, proposed that the only way to prove that cryptocurrency users are free of the traditional monetary system is to choose one day a year to call for everyone to withdraw their Bitcoins from all third party services. Apparently, Mayer’s inspiration came from an anonymous Reddit user, who proposed the same, but had gained little traction for his or her proposal.
In response to this, Mayer took the proposal, fleshed it out a bit and sent it out to his Twitter following, which sits at just over 53,000. Reportedly, Mayer’s key conclusions ended up being that once this event has finished on January 4th, we will truly know who is free of the tethers of traditional banking and who does not really own his or her cryptocurrency holdings.
A secondary, yet arguably equally important implication that could come from all of this is that we may soon find out which crypto exchanges can handle a mass exit of customers, even for a short time, and which cannot. In HitBTC’s case, according to CCN’s report yesterday, it would seem that they fall into the latter party due to allegations of their staff engaging in the mass freezing of customer accounts.
Until January 3rd is over, however, we will not know if this truly proves to be the case or not.
By: BGN Editorial Staff