بلاگ

We’re thrilled to announce that GUN, JST, K and USDD are now available for trading on Kraken!

Funding and trading

GUN, JST, K and USDD trading will be live as of 15:00 UTC today, April 1, 2025.

To add an asset to your Kraken account, navigate to Funding, select the asset you’re after, and hit ‘Deposit’. 

Make sure to deposit your tokens into networks supported by Kraken. Deposits made using other networks will be lost.

March 31, 2025
|
Kraken Wallet, New Features

Kraken Wallet users can now link their Kraken accounts directly to their Kraken Wallet, unlocking a seamless and secure way to manage their crypto. No more switching platforms or copying addresses — just connect and go.

March 28, 2025
|
Asset Listings

We’re thrilled to announce support for new USD margin pairs for Kaito (KAITO) and Mantra (OM) —Taking our total to over 220+ markets enabled for margin trading on Kraken Pro!

Margin trading is now available for the below pairs: 

Pair base	Pair name	Available Leverage	Long Position Limit	Short Position Limit
KAITO	KAITO/USD	3x	20,000	20,000
OM	OM/USD	3x	4,600	4,600

Here’s some more information about the tokens:

Kaito (KAITO) is the native token of the AI-powered InfoFi network, driving market dynamics, governance, and transactions. It enables token holders to influence content discovery, participate in decentralized decision-making, and facilitate seamless interactions within the ecosystem. KAITO powers an efficient, transparent, and community-driven financial information network.

Mantra (OM) is a DeFi platform offering staking, lending, and governance powered by blockchain technology. Its native token, OM, facilitates transactions, governance, and rewards, enabling community-driven decision-making. MANTRA empowers users with secure, transparent financial tools designed to maximize engagement and optimize returns in the DeFi ecosystem.

Before you start, what you should know:

In order to trade using margin, you will need to hold at least one collateral currency.

The availability of margin trading services is subject to certain limitations and eligibility criteria.

Margin trading incurs additional fees for opening, closing and holding a position. Learn more about the different rates and fees.

Will Kraken offer more pairs on margin?

Yes! But our policy is to never reveal any details before launch – not even which pairs we are considering. All of Kraken’s listed margin pairs are available on our website. Our client engagement specialists cannot answer any questions about which pairs we may be listing in the future. 

Trade with caution

There is no guarantee that a limit order will execute. There is no guarantee of margin pool availability at all times. There is also no guarantee of a market order executing at a certain price. The availability and liquidity of the particular digital asset will impact these types of orders.

Ready to trade but don’t have a Kraken account yet? Sign up today! 

We’re thrilled to announce that NIL, TERM and WAL are now available for trading on Kraken!

Funding and trading

NIL, TERM and WAL trading will be live as of 12:00 UTC today, Mar 27, 2025.

To add an asset to your Kraken account, navigate to Funding, select the asset you’re after, and hit ‘Deposit’. 

Make sure to deposit your tokens into networks supported by Kraken. Deposits made using other networks will be lost.

March 27, 2025
|
Asset Listings

Contents

Introduction

After a blistering up-only start to the final quarter of 2023 with excitement around the BlackRock Bitcoin spot ETF and 2024’s Bitcoin Halving turning into unbridled FOMO, markets came back down to earth this week as far-reaching news hit global headlines.

On November 21, 2023, Binance, the world’s largest cryptocurrency exchange, and its founder Changpeng Zhao, also known as CZ, reached a long-awaited settlement with US authorities, concluding many of the civil and criminal investigations into the exchange, but also leaving CZ to possible jail time

As part of the settlement, Binance agreed to pay a staggering total of $4.3 billion in fines. This includes $2.7 billion in civil monetary penalties and disgorgement and $1.6 billion in criminal fines and forfeiture. The fines will be paid to various government departments, including the U.S. Treasury and the Commodity Futures Trading Commission (CFTC),  who all had ongoing legal actions against Binance. 

In a shocking turn of events, CZ, possibly the biggest name in the crypto space, pleaded guilty to breaking U.S. anti-money laundering laws and agreed to step down from his role as CEO of Binance, which will now be filled by the experienced ex-Abu Dhabi regulator Richard Teng. 

CZ posted bail for $175 million after persuading the judge that he be allowed to return to his residence in the UAE and he will also pay a $50 million fine to the CFTC.

The SEC also delivered new charges against  US exchange Kraken, despite its payment of a $30 million fine only 10 months ago, worryingly again declaring several cryptocurrencies, including Solana and Cardano, to be securities. Interestingly, Ethereum and XRP are not on the list. 

The Case Against Binance and CZ

The SEC previously filed 13 charges against Binance entities and CZ, alleging that they operated unregistered exchanges, broker-dealers, and clearing agencies, misrepresented trading controls and oversight, and engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and evasion of the law

The SEC’s complaint alleged that since at least July 2017, Binance.com and Binance.US, while controlled by Zhao, operated as exchanges, brokers, dealers, and clearing agencies, earning at least $11.6 billion in revenue from transaction fees from U.S. customers. 

The securities regulator, which has been criticized for being on a perceived witchhunt against crypto companies, charged Binance for the unregistered offers and sales of BNB, BUSD, and crypto-lending products known as “Simple Earn” and “BNB Vault.” 

In addition to the SEC’s charges, Binance and CZ faced accusations from the U.S. Department of Justice and the U.S. Commodity Futures Trading Commission (CFTC). The CFTC sued Binance for offering unregistered crypto derivatives products in the U.S., alleging that Binance had a “maze of corporate entities” demonstrating the exchange’s “willful evasion of U.S. law”.

Why Did Binance and CZ Settle?

So, why did Binance settle? The answer lies in the severity of the charges and the potential consequences of not settling. The U.S. authorities accused Binance of prioritizing profits over the safety of the American people, and of using new technology to break the law. The settlement allows Binance to continue operating, albeit with significant penalties and compliance requirements over the next few years, as it exits the US market (BinanceUS will remain). This can be considered a win, as it avoids what would have been a long and arduous court battle over multiple years.

Looking ahead, the future of Binance is uncertain but not necessarily bleak. While the settlement may result in a short-term loss of market share (over $1 billion in funds have been withdrawn in the 24 hours after the news broke), Binance could regain its dominance in the long term. The settlement also concludes many of the civil and criminal investigations into the exchange, providing some level of closure and stability. With a new bull cycle anticipated for 2024 and 2025, creating a clean slate to operate from is a smart play.

The need for self-custody

The US’ latest actions against centralized exchanges (CEXs) again underscore the importance of using a self-custody hardware wallet like CoolWallet.  As we saw in the past with horror events like the collapses of Mt. Gox and FTX, no exchange is too big to fail, especially when targeted by regulators and hackers. This doesn’t mean Binance will go under, however, it definitely adds more risk to its services. As we’ve seen with other failed exchanges like Mt. Gox, FTX, and Cryptopia, liquidators can take years to refund exchange users, if at all. 

Reputable centralized exchanges like Binance, Coinbase, and Kraken have all been targeted by US regulators this year and threatened with a long list of consequences if they don’t comply.

Last year’s cascade of crypto custodian failures showed us that taking control of your crypto assets is the safest option. If you don’t own your private keys, then you don’t own your crypto.
Self-custody with a non-custodial wallet gives users full control over their private keys and, therefore, their funds at all times. This means that even if a regulatory body were to take action against the wallet provider, users’ funds would remain safe and accessible as only you have access to your funds thanks to the power of blockchain cryptography.

With so many hacks and scams happening in the crypto space, the smart choice for users is a hardware wallet with a proven track record and ample features. 

Look no further than CoolWallet, a trusted Web3 hardware wallet brand established in 2014 that allows you to HODL and stake your crypto in elite and easy cold storage for the next bull run, retaining full control over your funds at all times.
Its open-source EAL6+ secure element, encrypted Bluetooth, 2+1 FA verification, and convenient tamperproof and waterproof design keep your portfolio discreet, safe, and within reach, anywhere, anytime. 

But don’t take our word for it. The world’s biggest crypto exchanges like Binance, OKX and Crypto.com have all partnered with us in the past for special co-branded CoolWallet editions (see our Binance-branded CoolWallet S below).

In addition, the CoolWallet App boasts almost all the functionality of centralized exchanges, but with the peace of mind of cold storage and without the ills of centralization. You can purchase cryptocurrencies with a credit card or trade them for other digital assets or NFTS on platforms such as UniSwap, 1inch, MetaMask, OpenSea, and more.

Our latest Bridge Swap integration with XY Finance also allows you to easily and affordably bridge your assets across different blockchains (for example, bridge USDT ERC20 tokens for USDC BEP20 tokens).

Conclusion

The Binance settlement is a dramatic turn of events that could mark the end of Binance’s global dominance. However, it can also be considered a win for the crypto exchange and the industry, as it likely brings to an end the fear of Binance being sanctioned and CZ being arrested, and brings to an end speculation about the fate of the crypto exchange.

 It certainly took a lot of courage for CZ, possibly the most popular person in the crypto industry, to fly to the US and subject him to the country’s laws, as the UAE where he resides has no extradition treaty with the United States, and Sam Bankman-Fried was found guilty only last month, and could possibly be sentenced to over 100 years in 2024. At the very least the settlement provides a clear road ahead for Binance to get fully compliant and in the good graces of regulators. 

The result also boosts the prospects of a Bitcoin spot ETF by BlackRock and others being approved soon, since the regulatory housecleaning against  FTX, Binance, Coinbase and Kraken leaves less of an argument for SEC chairman Gary Gensler and company that crypto markets continue to be manipulated. 

The Binance saga serves as a stark and timely reminder of the regulatory challenges still facing the crypto industry. 

While most CEXs shrugged off their AML responsibilities in the early days of their existence, the crypto landscape has permanently changed and compliance is no longer optional. Ignorance of the law is no excuse and there are real consequences for failing to meet regulatory standards. 

As the dust settles, the crypto industry will be watching closely to see how Binance navigates its new reality and what this means for the future of crypto exchanges. In the meantime, explore how self-custody with CoolWallet Pro and CoolWallet App can help you HODL safely in style.

Contents

This article is not financial advice of any kind and serves only as educational content based on the opinions of the author. Please do your own research.

Written by Werner Vermaak

Introduction

Since the crazy DeFi Summer of 2020 kicked things off,  decentralized exchanges (DEXs) like Uniswap and 1Inch have become an essential part of crypto trading for more experienced crypto users. With centralized exchanges (CEXs) under siege from both regulators and bad actors and DEXs making huge innovations, there is a growing debate whether smart investors should just give up CEX in favor of DEXs.

In 2022, the failure of crypto custodians like FTX erased billions of dollars in retail investor funds. This in turn resulted in US regulators in particular sharpening their knives for CEXs in 2023, with the biggest exchanges like Binance, Coinbase, Kraken and now also Bybit targeted by the SEC, CFTC and other federal agencies. While Binance could afford its $4.3 billion fine, how many other exchanges can stay afloat in these conditions? In the battle of Proof of Keys vs Proof of Reserves, control matters.

This is leading more and more crypto owners to give up on CEX, moving away from centralized finance (CeFi) and into the world of decentralized finance (DeFi), where there is no risk of intermediaries getting sanctioned or hacked. And it’s not only users, but even exchanges themselves, as we’ve seen with Coinbase’s launch of its Base network this year, while others like Binance and Crypto.com already have their own chains (BNB Chain and Chronos). 

CoolWallet has been Team Self-Custody since day 1. Soon after our launch in 2014,  the cataclysmic Mt.Gox hack gave us a mission to provide crypto users with a safer alternative: ultra-secure and portable cold storage you can keep in your actual wallet. Nearly a decade later, our prized Web3 hardware wallet models the CoolWallet Pro and CoolWallet S still stay true to a simple vision: Not your keys, not your crypto. 

As we head into 2024, is it time to definitively say that using a DEX is better than a centralized exchange? We certainly feel so, but let’s weigh up the arguments. 

CoolWallet Founder Says The Future is DeFi, How We Get There Matters

CoolBitX CEO and creator of CoolWallet Michael Ou recently commented on LinkedIn on ex-Binance’s CEO Changpeng “CZ” Zhao’s intention to explore DeFi at some stage in the future.  

Ou pointed out that Uniswap has already surpassed Coinbase in trading volume in the first half of this year, and that centralized exchanges are launching their own public chains and decentralized applications for clear reasons.

He believes that the full potential of Web3 can only be reached if we combine self-custody with DeFi and Dapps. While DeFi is set to overtake CeFi, how it does it and captures new users will be critical, and CoolWallet will throw its full support behind this journey.

Current State: DEX to CEX Spot Trade Volume

Looking at CEX vs DEX data in the graph below (January 2019 to November 2023), we can see that DEXs have steadily grown their trading volume in the last few years. Still, as of November 2023, DEXs account for less than 10% of the trading volume compared to CEXs, after it reached an all-time high of 22% in June 2023 when the SEC first went after Binance and Coinbase.

In terms of specific exchanges, Binance, the largest CEX, processes a $14 billion spot trading volume per 24 hours. In comparison, Uniswap, a well-known DEX, has a lower volume but in the last year its trading volume outpaced that of Coinbase, a major CEX, for several consecutive months.

January 2019 to November 2023

Understanding Centralized Exchanges (CEXs)

Centralized exchanges function similarly to traditional stock exchanges. They are operated by a central authority which controls the platform’s operations. This includes overseeing the order book, executing trades, and holding user funds. Well-known examples include Coinbase, Binance, and Kraken.

Key Benefits of CEXs – User-Friendly Interface: They often provide a more user-friendly interface that is suitable for beginners. – Higher Liquidity: CEXs generally offer higher liquidity, facilitating quicker trades and better prices. – Customer Support: They provide customer support and services, which can be crucial for new users.

Key Limitations of CEXs – Security Risks: Holding funds centrally makes CEXs a target for hacks. – Regulatory Oversight: Being centralized entities, they are subject to governmental regulations, which can impact their operations. – Privacy Concerns: Users have to go through KYC (Know Your Customer) processes, compromising anonymity.

How Decentralized Exchanges (DEXs) Work

In contrast, DEXs operate without a central authority. They utilize smart contracts on blockchain networks, like Ethereum, to facilitate peer-to-peer trading. Users retain control of their private keys and thus their funds, trading directly from their wallets. Leading examples include Uniswap, 1Inch, Raydium (Solana), Sushiswap, PancakeSwap (BNB Chain) and Osmosis (Cosmos). All these DEXs can be accessed in the CoolWallet App by using native features such as WalletConnect.

Key Benefits of DEXs – Enhanced Security: Since there’s no central point of failure and users hold their funds, the risk of large-scale hacks is minimized. – Anonymity: DEXs typically do not require personal information, preserving user privacy. – No Counterparty Risk: Users trade directly from their wallets, mitigating the risk of losing funds due to the exchange’s insolvency.

Key Limitations of DEXs – Complex Interface: They can be less intuitive, posing a challenge for beginners. – Lower Liquidity: DEXs often suffer from lower liquidity compared to CEXs, leading to price slippage. – Limited Customer Support: The lack of centralized customer support can be a drawback for users requiring assistance.

Quick Comparison: CEX vs DEX Features

• Security: DEXs have a clear advantage in terms of security. The decentralized nature and user control over funds significantly reduce the risk of large-scale breaches.
• Privacy and Anonymity: DEXs offer greater privacy as they usually don’t require personal information for transactions.
• Regulatory Compliance: CEXs, being centralized, are more compliant with regulatory frameworks, which can be seen as both an advantage and a limitation.
• Ease of Use: CEXs are generally more user-friendly, catering to a broader audience including beginners.
• Liquidity and Trade Execution: CEXs excel in providing higher liquidity, resulting in better trade execution and less slippage.

6 Reasons To Use A DEX instead of a CEX in 2024

Source: Medium

In most cases though, choosing a centralized or decentralized exchange hinges on personal preference and what’s most important to you. Here are a few benefits that DEXs have over CEXs that you might not be aware of.

1. Better Security

DEXs are generally considered more secure than CEXs because they operate on a decentralized network, making them less vulnerable to hacks and other security breaches. Users maintain control of their private keys, ensuring full ownership and control over their assets at all times.

2. Total Control Over Your Funds

In a DEX, you have full control of your wallet and private keys. This grants you complete ownership, but it also means you are solely responsible for protecting your assets. Learn more about the Proof of Keys movement here.

3. More Privacy

DEXs do not require users to disclose their personal information or identity, such as through Know-Your-Customer (KYC) procedures, which is important for users who prioritize privacy. Traders using DEXs don’t need to disclose their private keys or identity (yet!) because wallets are held externally, and the DEX is not liable for the funds.

4. Less Market Manipulation

DEX automation, along with the fact that they do not hold user-submitted data, means that these new-generation exchanges are harder to manipulate.

5. Transparency and Verifiability

All transactions on a DEX are recorded on an immutable public blockchain. This ensures complete transparency and allows any user to verify the legitimacy of transactions.

6. Access to small-cap altcoin gems

It’s a well-known fact that by the time a cryptocurrency is listed on a big exchange, it’s already well-established and with a large market cap. DeFi degens know the real money is made earlier, and want to frontrun CEX listings by buying promising tokens as soon as they are created. The only way to do this is to get the smart contract address and swap assets or provide liquidity on a DEX like Uniswap in exchange for staking rewards. Of course, these early-stage tokens come with a very high risk of fraud and scams, so keep this in consideration at all times. Also, be really careful of signing any transaction with a wallet that holds significant funds, as it can be drained.

This is where CoolWallet’s SmartScan feature comes in handy- It analyzes smart contract code in real time and flags any suspicious behavior immediately.

What are DEX drawbacks?

However, it’s important to note that DEXs also have their drawbacks. 

Complex Learning Curve

They can be more complicated to use, especially for those less familiar with decentralized blockchain technology. This is why most newbies opt to get started on big centralized exchanges. 

Security concerns

DEXs also have potential security concerns, such as smart contract vulnerabilities, rug pulls (when the team drains all liquidity and exits)  and protocol and implementation risks. The newer the coin and smaller the market cap, the bigger the risk.

Liquidity Fluctuations

Furthermore, DEXs may struggle more than CEXs when working with larger investors due to issues with liquidity, since the trading pairs are often newer and therefore have less coins circulating. 

Non-reversible

Lastly, the irreversibility of transactions means that if your funds are stolen or lost due to inadequate security measures, there’s usually no recourse to recover them. This is a feature, not a bug, of blockchain technology, where immutability is gained by giving up centralized control over transactions. 

Regulations

Regulators are slowly turning their gaze to DeFi, and in the US, regulators have made it clear that decentralized protocols will have to comply with AML/CFT laws and other regulations. As the arrests of some DeFi developers have shown, they mean business.

How are DEXs boosting liquidity? 

The perception of DEXs having low liquidity is becoming increasingly outdated, as they evolve and become more and more sophisticated, sucking up liquidity from a range of sources to cater for traders both big and small. Here’s how:

1. Liquidity Pools: DEXs use liquidity pools, which are crowdsourced pools of cryptocurrencies or tokens locked in a smart contract. These pools facilitate trades between assets on a DEX, allowing digital assets to be traded in an automatic and permissionless manner
2. Automated Market Makers (AMMs): AMMs are algorithms that set the price of a token pair in a liquidity pool based on the ratio of the tokens in the pool. This mechanism allows for continuous and automated trading, which can increase liquidity. 
3. Incentives for Liquidity Providers (LPs): DEXs incentivize users to provide liquidity by offering rewards, often in the form of governance or native tokens.
4. Fragmentation of Liquidity Supply: DEXs allow for fragmentation of liquidity supply between low- and high-fee pools. This means that small liquidity providers (LPs) can converge to high-fee pools, accepting lower execution probabilities to mitigate smaller liquidity management costs. On the other hand, large (institutional) LPs can dominate low-fee pools, frequently adjusting positions in response to substantial trading volume.
5. DEX Aggregators: DEX aggregators optimize token prices, swap fees, and slippage by sourcing liquidity from multiple DEXs, offering better rates for users and improving overall liquidity.
6. Direct Peer-to-Peer Trading: DEXs allow users to trade directly from their wallets by interacting with the smart contracts behind the trading platform. This direct trading can increase the overall liquidity of the platform.

By boosting liquidity, DEXs can offer more stable prices, reduce slippage (price changes due to large trades), and improve the overall trading experience for users.

How do DEXs handle user disputes?

In a DEX, the terms of a trade are decided using a smart contract, and an Automated Market Maker (AMM) handles the trade itself. This process does not involve scrutiny by a third party. 

Decentralized exchanges (DEXs) may handle disputes between users through a process known as Decentralized Dispute Resolution (DDR).

Smart contract dispute resolution is another method used to resolve disputes in DEXs. This involves resolving disputes that occur when a smart contract is executed. Smart contracts are self-executing programs contained in a blockchain, such as Ethereum. The program ensures the actions agreed on in the contract happen, which removes the trust generally required when exchanges occur. 

In some cases, blockchain startups have created dispute-resolution solutions using blockchain technology, smart contracts, and online applications. For instance, a user might find a dispute transaction button on the decentralized application (dApp), and a smart contract would execute dispute resolution actions. The blockchain network would then select a group of mediators or arbiters.

Another approach is the use of Online Dispute Resolution (ODR) mechanisms, which are being adapted to the blockchain context.

Conclusion: Is a DEX Better Than a Centralized Exchange in 2024?

The answer largely depends on the user’s priorities and expertise. If security, privacy, and self-custody are paramount, a DEX is superior. However, for users valuing ease of use, higher liquidity, and regulatory compliance, a CEX might be more suitable.

Or at least, that was the old argument. While the above drawbacks certainly applied to decentralized exchanges at the start of the decade, and smart contract risks and hacks are still very much a big concern in DeFi, there has also been a lot of innovation in what is still a very young industry with a very big mission. 

Recent DeFi innovations such as perpetual DEXs which allow for leverage trading, Telegram trading bots which enable you to automate your trading strategy and “snipe” good buying opportunities, and convenient features such as limit orders on DEXs like 1inch have blurred, if not erased, the lines between the existing ideas of a DEX vs CEX. Add to this exciting swap bridges like XY Finance, our latest partner, and the answer is clear:

It’s simply faster, cheaper, safer and more private to use a DEX, if you know what you’re doing.

And the great news is that you can do it all on CoolWallet, in cold storage.

What Is DOT Staking?

DOT Staking is based on the Nominated Proof-of-Stake (NPoS) mechanism. Polkadot is a decentralized network of validators selected by nominators to secure Polkadot‘s entire multi-chain ecosystem. Validators and nominators get a share of DOT in return. Now, you can easily participate in the Polkadot network and earn rewards via CoolWallet.

How to Stake DOT on CoolWallet?

Staking DOT requires 2 actions:

1. Bond: Locking tokens on-chain.
2. Nominate: Selecting a set of validators, to whom these locked tokens will automatically be allocated to.

Once staked, DOT assets cannot be used for transactions. After staking is completed, you can add more stake at any time to increase the total staked amount.

Step 1. Download the latest CoolWallet App and have your CoolWallet Pro ready.

 

Step 2. Open the app and go to the “Marketplace” section located at the bottom. Then, select “Staking” and choose “DOT”. Finally, click on the “Stake” button.

 

Step 3. Enter the amount you wish to stake. It’s important to be aware that Polkadot staking utilizes a “bag list mechanism”. For a detailed understanding of how this mechanism works, you can watch the official video.

 

https://www.youtube.com/watch?v=hIIZRJLrBZA

Minimum Staking Requirements: Ensure your staking amount meets these minimums to qualify for rewards. Check the most recent staking requirements in the FAQ on CoolWallet App. *At the time this post was created, the minimum amount required to stake DOT is 451.

To successfully stake DOT, you’ll need to complete two transactions: “Bond” and “Nominate.” Click on “Continue” to proceed and follow the verification process to finalize the “Bond” transaction.

 

Step 4. Once you’ve successfully completed the “Bond” transaction, proceed to finalize the “Nominate” transaction.

 

Step 5. Now, all that’s left to do is wait for your rewards to accumulate! Enjoy the benefits of DOT staking with CoolWallet.

What should I do if I’ve completed the “Bond” transaction but not the “Nominate” transaction?

No worries! You can simply click on “Action pending, click here to proceed” on the “Manage Stakes” page and choose “Nominate” to complete the “Nominate” transaction.

How can I check if my staking amount is insufficient to earn rewards?

You’ll see a reminder on the “Manage Stakes” page that says, “Please click here to reconfirm your staking status” if your staking amount is below the minimum requirement or close to it. Simply click on the reminder to add more to your staking amount and ensure you can accumulate rewards.

How to Retrieve Staked Assets?

Unstaking DOT requires 3 actions:

1. Chill: Chilling is the act of stepping back from any nominating or validating.
2. Unbond: Unlocking the tokens on-chain to make them transferable.
3. Withdraw: Once the 28-day unbonding period has passed, your unbonded funds can be withdrawn and made transferable.

After you start the Unbond action on Polkadot, your tokens will go through a mandatory 28-day unbonding period. They’ll be locked and cannot be moved during this time. Once the 28 days are up, you’ll need to claim your rewards to get your tokens sent to your address. Just remember, you won’t earn any rewards while your tokens are in the unbonding period.

 

Step 1. To unstake your DOT, you’ll need to complete two transactions. Start by clicking on “Request to unstake” and selecting the staking item you wish to unstake. Then, click “Continue” to proceed.

 

Step 2. After that, complete the verification process and click “Got it” for the second transaction, which is “Unbond.”

 

Step 3. Once the “Unbond” transaction is completed, you’ll need to wait for your assets to be unfrozen.

 

Step 4. When your assets are unfrozen, you’ll see a reminder saying “Unlocked, please tap to retrieve your asset” on the “Manage Stakes” page. Click on it and follow the steps to withdraw your staking assets.

What should I do if I’ve completed the first transaction but not the “Unbond” transaction?

No worries! You can simply click on “Action pending, click here to proceed” on the “Manage Stakes” page and choose “Unbound” to complete the “Unbound” transaction.

About the Validator P2P.org

Founded in 2018, P2P.org is dedicated to providing staking services and has emerged as a leading proof-of-stake validator and RPC node provider. P2P.org assists investors in compounding their cryptocurrency investments and offers high uptime, secure staking with advanced monitoring and support.

FAQ – DOT Staking

Is there a minimum amount for DOT staking?

Yes. The minimum staking threshold is subject to change with each era based on the mechanisms on the Polkadot chain. Ensure your staking amount meets these minimums to qualify for rewards. Check the most recent staking requirements in the FAQ on CoolWallet App.

If there’s a chance you might not get rewards for your DOT staking, the CoolWallet App will let you know. You’ll see a message saying, “Please click here to reconfirm your staking status.” Just click it to adjust your staking and keep your rewards coming.

How is the reward calculated?

When a stake is completed, it will take at least one era to accumulate rewards and waiting time ranges from 1 to 24 hours. Once started, the rewards will be settled every 24 hours. Rewards may vary based on the returns of the validator and other impacting factors.

How to claim the reward?

During stake, the validator will automatically send the reward to your address, no extra action is required.
CoolWallet currently does not support modifying the receiving address for the reward.

What are the penalties?

According to the operating protocol of Polkadot, if the validator is punished by the Polkadot network due to misbehaving, part of your locked DOT asset will be taken as a penalty.

Last week saw Ledger, the world’s biggest crypto hardware wallet manufacturer, fall victim to a targeted high-profile supply chain attack that breached hundreds of thousands of dollars in cryptocurrencies from users’ wallets. 

However, experts believe that the hack could’ve been truly catastrophic if it remained undetected for longer, and it could have siphoned off tens of millions in users’ funds and contaminated the entire DeFi ecosystem in the process. Ledger’s popularity as a cold wallet and its self-reported 1.5 million customers made it an easy target for the hacker, and it and other leading USB-format cold wallets like Trezor are often in the cross-hairs of bad actors for this reason. Alarmingly, the breach was first spotted by a third-party firm, not Ledger, which points to a potentially serious lapse in Ledger’s security monitoring.

The French wallet maker’s latest kerfuffle comes after previous slip ups such as 2021’s database phishing hack and 2023’s seed recovery service controversy. This time it involved the compromise of Ledger’s widely-used Connect Kit JavaScript library, leading to the theft of an estimated $700,000 in digital assets from wallets that connected to services through Connect Kit.

The hack’s sneaky attack vector and capacity to annihilate the entire DeFi industry offer several serious security considerations for all crypto users and service providers, which we will discuss later in this article.

 

 

How the Ledger Supply Chain Attack Occurred

The Ledger Connect Kit hack was a new iteration of a classic “supply-chain attack,” which gained notoriety with the SolarWinds hack. Such attacks compromise behind-the-scenes infrastructure software and may have caused significant damage to crypto users. 

• An attacker phished the account of a former Ledger employee, to gain access to Ledger’s Connect Kit software.
• They then injected malicious “drainer” code into Ledger’s software component that was designed to siphon off digital assets from wallets connected through the Connect Kit. 
• The code redirected user funds to the hacker’s own wallet during transactions with dapps that interacted with the infected software.
• The malicious code snatched crypto from wallets connected to services through Connect Kit for a few hours before it was patched. 
• Before the issue was patched, the entire web3 ecosystem was at risk.The compromised file was active for only five hours, during which two hours it was actively draining funds.

Other wallet makers like CoolWallet quickly alerted DeFi users to the crisis, with its technical director Wesley Wen warning users not to connect with any dApps due to the compromised software.

                              

Impact on Decentralized Finance (DeFi) Protocols

The impact of the vulnerability extended beyond Ledger, affecting other protocols in the decentralized finance (DeFi) space, such as SushiSwap, Kyber, Revoke.cash, and Zapper. Kyber and Revoke.cash took immediate action, deactivating their respective front ends to prevent further exploitation.

Sushi Swap CTO Matthew Lilley warned Dapp users to not interact with any applications until the situation was resolved. 

                                   

Ledger Hack: Crypto Security Lessons To Heed For Industry and Users

As David Schwed explains in Fortune, what’s particularly alarming about this incident is that the damage to crypto users wasn’t as catastrophic as it could have been, but the implications for Ledger were severe. The company, known for its strong security, faced a crisis that was entirely preventable. To prevent such internal process failures, crypto projects need to reorient their security standards around more robust security reviews and best practices.

Proper code management

The root of the problem lies in process failures and gaps in security practices, issues that are unfortunately common in the crypto and blockchain world. Many projects in this space have security measures that are either immature or underfunded, focusing too narrowly on finding code vulnerabilities. However, the Ledger hack wasn’t about a flaw in the code itself; it was about how the code was managed and updated.

Employee access control

The initial breach stemmed from a phishing attack targeting a former Ledger employee’s accounts. This raises questions about the need for better anti-phishing training and practices. More concerning was that the former employee still had access to Ledger’s code on a third-party service. This is a glaring oversight in access control.

But the most critical failure was the automatic updating of the Connect Kit code from a live database without any human review. This practice created a significant vulnerability, as there was no check to ensure that the changes were legitimate and not malicious.

Holistic auditing

This incident highlighted the limitations of security audits that focus only on code, instead of covering all the bases. A more comprehensive approach is needed, one that assesses the entire development lifecycle. This includes internal security measures, phishing prevention, and change-management processes.

User Responsibility

As in any industry, the customer eventually gets to determine the level of quality that they’re willing to accept by voting with their purchases. Crypto users can keep wallet makers on their toes by choosing reputable wallet providers with stellar track records and industry-best standards. This includes implementing strong authentication methods, regularly updating software and firmware, and following best practices for backup storage and recover.

Conclusion

The Ledger hack should serve as a wake-up call for the entire crypto industry. It shows that crypto isn’t inherently insecure, but there’s a pressing need for more rigorous and standardized security practices. 

By learning from this incident and implementing best practices, crypto wallet users can better protect their digital assets and avoid similar security breaches in the future.

As the industry matures, companies that invest in robust security measures will stand out for their trustworthiness and longevity. Those who don’t risk being left behind due to avoidable failures. 

Crypto users looking to diversify their risk should check out CoolWallet Pro, a pioneering battle-tested hardware wallet reputable track record which has been in existence as long as Ledger has (2014). Its maker CoolBitX celebrates an unblemished 10-year anniversary next year.

With an EAL6+ secure element, biometric verifications, encrypted military-grade Bluetooth and a tamperproof and waterproof wafer-thin design, this elite and convenient hardware wallet allows you to access Web3 and your digital assets anywhere, anytime with absolute discretion. 

Learn more about CoolWallet Pro (for DeFi power users), CoolWallet S (for HODLers) and its CoolWallet App, which features SafeScan, an integrated real-time Web3 transaction and dapp scanner to detect and thwart phishing threats, at the links below:

CoolWallet Pro: https://44f03c-3.myshopify.com/products/coolwallet-pro-1
CoolWallet S: https://44f03c-3.myshopify.com/products/coolwallet-s
CoolWallet App: https://44f03c-3.myshopify.com/pages/coolwallet-app