Jupiter Exchange is facing significant backlash after requiring users to submit their seed phrases in order to claim ASR rewards. This controversial move has raised serious security concerns among the crypto community, and the analysis suggests that the situation is causing growing concern.
Jupiter Exchange Urges Seed Phrase Exports
The decentralized exchange has urged users to export their seed phrases into the Jupiter wallet to access their rewards. Many community members have voiced their discontent, arguing that mandating seed phrase exports for relatively small rewards poses a substantial security risk.
Defense of the Policy
In defense of its policy, Jupiter Exchange stated that the requirement was essential for ensuring a fair distribution of rewards and preventing potential manipulation. However, this justification has not quelled the concerns surrounding the potential for exploits and the additional burden placed on users, especially those who are long-term holders.
Plans for Alternative Reward Claiming Method
In light of the backlash, Jupiter has announced plans to introduce an alternative method for claiming ASR rewards in the coming weeks, aiming to address the community's security concerns while still facilitating reward distribution.
In contrast to the recent controversy surrounding Jupiter Exchange's seed phrase requirement, HyperLend is preparing to launch its staking and locking features following its token generation event. For more details, read more.
