Arwen, the cryptocurrency trading solution, not the Lord of the Rings character, announced on Monday that it has partnered with exchange operator KuCoin.
The news comes on the same day that Arwen announced that its solution would be going live.
Launched last year, the company says that it is going to make cryptocurrency trading on exchanges safer.
It plans on doing that by launching a solution that means users don’t have to store their assets with an exchange.
Currently, most cryptocurrency exchanges have a fairly basic set-up. A user deposits their cryptocurrency with the exchange, and it is held in one account.
One Mobile Trading App to Rule them All: Introducing eFXGO!Go to article >>
That means that an exchange that gets hacked is going to suffer exponentially more damage than another company which segregates its clients’ funds.
The reason for this is that, if a hacker does gain access to an exchange’s wallet, they gain access to ALL of their clients’ deposits.
That’s the reason that criminals have been able to steal hundreds of millions of dollars in one go over the past couple of years.
Solving the problem
Arwen says that it has solved this problem by creating a solution that enables people to trade with an exchange without storing their cryptocurrency with the exchange.
On top of this, the company says that users of its solution can trade without slippage but still maintain solid trading speeds.
“Centralized exchanges are valuable pools of liquidity for traders,” said Arwen CEO Sharon Goldberg. “The problem is that trading on centralized exchanges without an advanced security system is inherently risky for traders. If an exchange is compromised during a trade, customer funds are at risk. With Arwen, customer funds are secure even if an exchange is hacked.”