A third January was held the Proof of Keys event, chaired by bitcoin investor Trace Mayer. The discussion focused on the anticipated centralization of the cryptocurrencies and exchanges.
The Proof of Keys event is essentially a bank run on centralized exchanges, whose activists are called to withdraw all their digital assets with centralized trading platforms to store them in their own wallets. The main idea of the project is to bring back the owners full control over their cryptocurrency assets.
In the video report on the event Proof of Keys, Mayer said:
"The owners of the cryptocurrency needs to decide whether they want "monetary sovereignty" or they are ready to wait for 14 days to get own coins. What if some of the exchanges use the customer assets to pay their employees wages? It's much easier than to fire people."
First Jan Meyer accused cryptocurrency exchange HitBTC frozen options withdrawing funds from the accounts prior to the event, Proof of Keys. The Mayer also joined other industry representatives, including the entrepreneur Tour Demeester and wallet manufacturer Bitfi John McAfee.
However, HitBTC is quickly dismissed all charges. Explaining the situation, representative from the exchange’s marketing team has not seen any connection between account freezes and the ongoing event. In his appeal, he wrote:
"These temporary measures relate to the blocking of withdrawals are in compliance with the international requirements of KYC (Know your customer) and AML (anti money laundering). These rules exist and apply to all the participants of the cryptocurrency space, 24 hours a day, 365 days a year. We don't do not turn off any security tools or checks. We don't do that neither in normal nor public holidays nor during the flashmobs and events like Proof of Keys".
Bitcoin evangelists and crypto critics were equally condemning of the crypto space for over-centralization, which is completely contrary to its founding principles. American economist Nouriel Roubini, once said to the senators of the United States, that cryptography is "the mother and father of all frauds and financial pyramids", said that cryptography has the same centralization that North Korea.
He also added:
"Cryptographic decentralization is a myth. Miners centralized, cryptocurrency exchanges centralized, the developers are centralized dictators (Vitalik Buterin, founder Ethereum, ― dictator for life), and the Gini coefficient of bitcoin is much worse than in North Korea."