Recently Cryptopia has been featured in headlines across the internet and cryptocurrency community when on January 14th 2019 the exchange was compromised and was put into maintenance by the Cryptopia management team.
This maintenance has continued throughout February and is scheduled to end Monday 4th March, 2019 by which Cryptopia management inform publicly that the exchange will be re-opened, in a read only format.
Cryptopia, formally one of the most prominent digital currency exchanges during the spectacular event of 2017 was the go to location for new release, low marketcap tokens, accruing tens of thousands of sign ups per day and topping almost 1.5 million registered users at its peak.
Although the exchange had some teething problems organising how to manage the exponential increase in users so quickly, it acted as a marketplace specifically for these niche tokens which were unavailable elsewhere.
Cryptopia is a registered digital trading enterprise located in New Zealand. This exchange was initially created as a hobby in 2014 by two men, Adam Clark and Robert Dawkins.
Although Cryptopia has been dealt a devastating blow in January, the management team has been cooperating with New Zealand Police investigating the compromised exchange and assessing the financial damage which occurred.
Public announcements were made through New Zealand Police channels, providing updates throughout the investigation right through until passing back over office control to Cryptopias management team.
Cryptopia, known as the hotspot in low marketcap gems also incorporated a unique native token to the platform known as Cryptopia Fee Shares (CEFS).
6300 of these unknown token exist and were given to class B shareholders as a way to compensate them for early investment.
Cryptopia Fee Share when held on the Cryptopia exchange incurs dividend like rewards where 4.5% of all exchange fees get distributed among 6300 tokens, these rewards are calculated and distributed monthly.
This initiative is similar to Kucoin Shares and Coss exchange tokens, although there is a much smaller supply of Cryptopia Fee Shares.
Debates are circulating popular blogging spaces discussing the future of the Cryptopia exchange and their reputability. The management team reported that a total of 9.4% of holdings were stolen during mid January and the internet has not been sympathetic in responding with their distaste.
Time will tell how Cryptopia handles their reopening, but given their transparency and cooperation with the New Zealand Police, they have done everything in their power to isolate, investigate and implement the correct business practice to protect themselves and ensure the future of the exchange. Depending on how Cryptopia responds to their community from this moment onwards will determine their future success or failure of this new age digital currency exchange.