News, Technology

CoinZest mistakenly gifted users over $5M worth cryptos

Cryptocurrency is getting more and more popular by the day. More and more users prefer it to the other type of currency, money. With money, you always feel itched to use it. Cryptocurrency on the other hand limits you in a way. Since you can’t walk into a store and request to pay for goods using bitcoin, it encourages users to save. However, a lot of businesses are incorporating this method of pay into their businesses to target the users. E-commerce websites often have Bitcoin listed as a method of pay, mostly online shops. Some games also use cryptocurrency to enable users to buy new game modes or unlock various goods to make the game more enjoyable. Companies such as CoinZest have benefited a lot from this business.

A Chinese company, CoinZest, had to cancel all their transactions after they gave users free bitcoins and altcoins. They distributed up to $5.3 million. What a day to any user that got the free coins. The idea had been to airdrop We Game Token to its users. It seems to have been handled by a very incompetent employee. This ‘mistake’ happened as the company planned for a promotional event, hence the We Game Tokens. It turned out to be quite the promotion!

After the mishap, all services went offline. Buying and selling was disabled briefly. Therefore, All transactions were frozen as developers struggled to correct the malfunction. They managed to salvage at least half of the misplaced funds since some users had already withdrawn. I also wouldn’t have thought twice about withdrawing the free bitcoins, life is too hard out here to refuse such a blessing. CoinZest reported that they were yet to recover $2.6 million. A sum too big to ignore or balance out somewhere, I wouldn’t want to be the guy who made that mistake.

Industry experts don’t see a way to get the money from people who already made withdrawals. System mishaps have become too common, we recently posted an article about NewPipe. This article shows how dealing with bugs is becoming harder in the modern world. This should serve as a lesson to the rest of the industry, server maintenance should be treated as a priority. However, most of these companies refrain from spending a lot, hence the poor outcome. Companies such as Apple and Facebook would have detected the problem faster and even freeze the withdraw function. Such finesse doesn’t come easy however.

Komid, CoinZest’s rival also had reports of two executives forging trading data. I think these companies should me more careful about who they employ.