cryptocurrency The sector was shaken by major bankruptcy and hacking events after the bull market in 2021 and faced the most painful bear market in its history in 2022.
In this bear market some altcoin We have witnessed that some cryptocurrency exchanges and projects failed to survive and disappeared, leaving thousands of victims behind.
Although the bankruptcies of stock exchanges and hundreds of hacking incidents increased investors’ concerns about the sector, we have seen that these concerns can be easily resolved with the right communication methods, and projects that can communicate correctly with their users emerge even stronger from these attacks and problems.
We see that investors who are accustomed to the risks on cryptocurrency exchanges are often afraid not of attacks and losing money, but of not being informed, not being contacted, and not being able to find a contact person. This shows that users are prepared for hacking incidents, but they are not prepared to deal with the feeling of abandonment.
When we examine different examples of the use of communication channels after hacking incidents, we see that the masses can react differently to the same events depending on the differences in the usage methods of communication channels. This shows us that when investors are faced with multiple choices such as stock exchange selection, altcoin selection, wallet selection, they tend to prefer those with strong communication skills.
Dispelled Panic with Correct Communication
The latest example in this regard occurred on the CoinEx exchange. While the stock market was faced with an attack in the past weeks, it chose to stay in constant communication with both media organizations and users about this attack and ensured that the atmosphere of panic dissipated in a short time.
CoinEx’s openness, transparency and honesty and conveying this to users through correct communication channels was a method that cryptocurrency investors were not accustomed to. Because usually, private organizations notice the attack and announce it before the stock exchange makes a statement, there is a silence of up to 2-3 days in the relevant stock exchange with short and careless explanations, users spend this 2-3 day period with the feeling of abandonment, and although they later recover their funds, they feel that the stock exchange has abandoned them. He would hesitate to use the stock market again because the feeling settled in his mind.
Admit the Problem and Solve it
First of all, as soon as the stock market noticed the hacking incident, other security companies took action before they noticed the situation. He shared it directly with his users. Here, the fact that the stock exchange did not remain silent at the first moment and accepted the situation and chose to make the statement directly was a disservice to the users. It gave the signal that he was honest and that his statements could be trusted. The way the exchange accepted the problem and was not afraid to confront it instilled confidence in the users, while also increasing the trust in the statements made.
At the time of the first statement, it was promised that all user funds were safe and that 100% of the losses would be compensated in case of a possible loss, and that the statement was shared in detail in the wallets that carried out the attack, again reducing the anxiety of the users to some extent.
The CoinEX Asset Security Foundation, which CoinEx had previously established against such attacks, promised to undertake all financial losses and stated through multiple channels that the users would not be affected by this attack, dispelled the foggy and cloudy atmosphere created by the attack at the first moment among the users and increased confidence in the exchange. The negative atmosphere on the CoinEx exchange quickly dissipated as users did not feel abandoned and defenseless in this attack incident.
We can also notice that this atmosphere has dissipated from the comments made under the posts made by the CoinEx exchange on its official X account.
While there were negative comments such as “rekt, it’s over, here’s another one” under the post dated September 12, when the stock exchange first announced the hacking incident, the comments under the post published on September 14, where the detailed explanation and report on the attack was published, were “we trust you, thank you for your hard work.” , CoinEx is dealing with this situation better than the big guys like FTX and Celsius, and we want to help you.” We see that it has evolved into positive comments such as:
There is no doubt that the main reason for this change is related to the successful communication techniques during these two days. CoinEx managed this post-attack process well and was able to convey this to the community correctly.
CoinEx CEO Makes Clear Commitment at the Right Time
While the good management of this process and the correct use of multifaceted communication channels increased the trust in the stock exchange, the statements of the stock exchange CEO also reinforced this trust. Because it is very difficult to convince users with only a company account. In such difficult moments, users want to see a real person whom they can call to account, whom they can accept as an interlocutor, and whom they can assign the responsibility to when necessary.
CoinEx CoinEx founder and CEO Haipo Yang played this role in the incident. Addressing users on his social media account, Yang gave detailed information about his work after the hack and stated that their top priority is to prevent users from being harmed, that the users affected by the attack will be compensated 100% for their losses, and that all assets in CoinEx are safe under their own commitments.
To all CoinEx users & friends: We deeply regret the recent hack and extend our sincerest apologies to those affected. Your concern and attention have not gone unnoticed.
— Haipo Yang (@yhaiyang) September 14, 2023
CoinEx’s good use of communication channels helped dissipate the panic in a short time and prevent the connection between the exchange and users from being damaged.
What’s the Latest Situation in CoinEx?
CoinEx concretely proved that its efforts to fulfill the promises and commitments it made to its users from the first moment were full and reactivated deposit and withdrawal transactions on September 21.
what #CoinEx community, the Deposit & Withdrawal services for $BTC, $ETH, $USDT, $USDCand other cryptos have now been resumed.
🚫🚫 DO NOT use old addresses. 🚫🚫
🚫🚫 Assets sent there will be lost. 🚫🚫Thank you for your support during this period. https://t.co/XdMs0OyJXs
— CoinEx Global (@coinexcom) September 21, 2023
While many thank you messages were published after withdrawals started at CoinEx, a comment under the CoinEx post caught our attention.
The user named kwabena.eth, who is in the pictures above and shared the “rekt” message when the exchange was attacked, thanked the exchange for their honesty as the shooting started. This change in 9 days shows that CoinEx has dealt with this challenge well and emerged stronger from this attack.
It should be an example for other stock exchanges
CoinEx We think that this example should be examined in terms of the correct use of communication channels and that it can be an example for other exchanges regarding similar attacks that may be encountered in the future. Although CoinEx’s quick reaction and close work with other stakeholders in the industry mitigated the effects of this attack, we need a much more systematic security environment in this area.
The cryptocurrency industry needs a safe, stable and sustainable development environment in order to fulfill the claim of “technology of the future”. Undoubtedly, this safe environment is more possible with the joint efforts of all small and large stakeholders in the sector.
Frequently repeated attacks on cryptocurrency platforms constitute one of the biggest obstacles to the development of the sector, making it difficult for new investors to enter the sector.
At this point, it is a good model for the sector that sector representatives react quickly and act within the rules of honesty with a sense of responsibility not only to their own users but also to the entire sector.
Binance’s establishment of the reserve proof system after FTX’s bankruptcy created a good model for the industry and the exchanges followed it. It is possible to say that CoinEx has set a good model in terms of being honest with users after hack attacks and making clear commitments to compensate for damages and achieving this quickly.
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