Decentralized Exchange Waves Scored a $6 Million Debut. Then It Got Hacked

According to data provided to CoinDesk by the blockchain project Waves, the company's new decentralized exchange was facilitating $6 million of crypto transactions a day in beta testing last month.

Another factor is that almost any trader can issue a token on Waves' unique blockchain, even one that represents an IOU in fiat currency, and instantly trade it for bitcoin on the exchange.

On Tuesday, when Waves officially ended the beta period and launched the full DEX, hackers hijacked both the exchange website and the company's main site to phish for users' personal wallet information.

In order to transact on the DEX, users need Waves tokens.

The tokens are also used to run smart contracts and incentivize node operators on the Waves blockchain, a model similar to ethereum.

"Now we don't have to worry about currency control from different countries and players wanting to cash out in different currencies. It allows players to trade their tokens between other players...The decentralized exchange was a huge, key component in our decision to go with Waves," RewardMob CEO Todd Koch told CoinDesk.

"We want to integrate the DEX right into our app so that [when] a player earns our currency, they could easily exchange it for Waves or bitcoin or any other cryptocurrency," Koch said.

Since the Waves DEX matchmaking software is open source, numerous nodes could run their own matchmakers and almost act like cryptocurrency miners earning fees for processing trades.

The Waves DEX generally requires identity checks in two instances: when users opt for fiat cash out, through the Czech Republic-based payment processor Coinomat, a separate company Ivanov launched in 2013; or when they issue a token on the Waves platform and then list it publically on the DEX. Private token issuance traded through private listing options, according to Ivanov, does not require identity checks for compliance.

According to Waves' internal data, on June 23rd alone DEX traders swapped Waves tokens for $1.59 million worth of bitcoin and $251,697 worth of monero, just to name a few.