As you may already know, more than 150M dollars’ worth of coins and tokens were stolen from KuCoin exchange yesterday. Today, Ocean Protocol team has announced that they have paused the Ocean contract to protect their users. This is a very weird move since DeFi networks cannot do that, unless they are centralized.
Great. So if my BTC is ever hacked, I can expect the entire community to pause for it? I’m a big $ocean holder and stuck with what I have because this “decentralized” data token was put on pause.
— ATX (@300_Joules) September 27, 2020
This means that Ocean Protocol’s contract was not decentralized at all as a single entity decided to pause a contract. It is really not DeFi – decentralized finance – I mean what kind of decentralization includes the ability of pausing a chain?
We believe that Ocean Protocol did this as KuCoin hacker was dumping all his Ocean tokens on a real decentralized cryptocurrency exchange, Uniswap and due to that price of Ocean token was tanking. We feel reorgs and freezing of stolen funds is an absolute joke. It is antithetical to bitcoin, and it shows how god awful it is to hold any amount of your wealth in these centralized and completely mutable coins and tokens.
That’s not DeFi. If a hack can force you freely to pause the contract, than a regulator can and will too. For some little greedy money you give up your values.