Dx.Exchange has had quite the tumultuous week. As the exchange closes its first week of operation, the team behind the project was able to dodge a potentially damaging situation.
From hordes of investors signing up pre-launch, to potentially disastrous glitches, here is a brief look at the problems that plagued week 1.
Details of the Problem
Upon launch of the platform, an anonymous user took it upon themselves to evaluate DX.Exchange. Shockingly, the user found information leaks that could potentially be harmful to a variety of parties.
Information being leaked ranged from password reset links, to names, email addresses, and more. With this, if someone were so inclined, they would be able to create backdoor entrances to user’s accounts.
It isn’t hard to imagine what kind of havoc a malicious individual could wreak.
In an attempt to allay investor’s fears, Dx.Exchange has reached out the public with the following statement.
“We would like to thank the vigilant reporter, and our supportive community, who together with, brought his issue to our attention. We are happy to report that the vulnerability has been successfully patched, and no user funds were compromised. Our launch was met with a stellar response from our community eager to trade cryptocurrencies and digital stocks. Customer funds were always safe, our multi layer advanced monitoring and defense mechanism was able to avoid any further issue.”
This statement came after the company scheduled platform maintenance within hours of the news breaking.
WE SCHEDULED FOR TODAY AT 11:00 AM (ESTONIA TIME ZONE) A MAINTENANCE UPDATE TO IMPROVE OUR PLATFORM FUNCTIONALITY AND PERFORM SEVERAL BUG FIXES AND UPDATES. THE PLATFORM WILL COME BACK FULLY FUNCTIONAL AFTER FEW MINUTES. THANK YOU FOR YOUR PATIENCE
— DX.Exchange (@DXdotExchange) January 9, 2019
Caught out Attention
DX.Exchange originally caught our attention due to the manner in which they offer their services. Rather than hosting digital securities of companies that have decided to tokenize, DX.Exchange has taken a different approach.
They are purchasing traditional shares of publically traded companies, and then issuing their own security tokens to investors, representing ownership of the shares. Due to the method in which this transaction takes place, the shares are held by DX.Exchange. However, investors holding the associated security token receive the full range of benefits associated with them (dividends, equity etc.).
Examples of these companies notably include Apple, Tesla, Amazon, and others.
The CEO of DX.Exchange has stated that due to their licencing and region of operation, the SEC has no means in which to stop them from offering these services.
However, there are many skeptics of the exchange that believe it will eventually face due recourse. Through what means is unclear, but there are certainly going to be companies that do not want their shares tokenized in such a fashion.
DX.Exchange is based out of Estonia, and was founded in 2018. Above all, the company acts as an online exchange, providing investors access to a variety of digital assets.
Prior to the events discussed here today, we recently spoke about DX.Exchange and the companies recent launch. To learn more about DX.Exchange, make sure to read the article below.
DX.Exchange to Tokenize Publically traded Securities