Our wallet review process
We examine wallets starting at the code level and continue all the way up to the finished app that lives on your device. Provided below is an outline of each of these steps along with security tips for you and general test results.
Application build test result
While this might be a good thing:
- External Custodians are usually highly specialized in securing assets
- External Custodians will care about fixing issues with one client, to not lose others
- External Custodians are usually registered businesses under regulatory oversight
- External Custodians will try to protect your funds even from your wallet provider: With fraud detection, they will certainly try to avoid the emptying of all users' wallets at once
- External Custodians are extra intermediaries: Even when the wallet provider wants to let you use your money, they might turn out to be uncooperative
- External Custodians holding custody of many wallets are interesting targets for hackers and thieves
- External Custodians, being publicly registered will not be able to resist if in their jurisdiction rules on the use of Bitcoin get tightened
As External Custodians usually don't publish lists of companies they are working with and past information might be outdated, we have no way of assuring claims by wallet providers to be using their custody solution. Please let us know if you found proof that the provider is being dishonest about their business relation to External Custodians!
This DeFi (Decentralized Finance) app promises passive income from cryptocurrency holdings.
Earn on Bitcoin, Ethereum, DeFiChain and many other coins.
Interestingly, this app is managed by a regulated business entity.
Cake Pte Ltd. is a financial services provider registered and regulated in the global financial center Singapore. Your money feels home!
Cake Pte Ltd is currently applying for the Payment Services License in Singapore. We have been granted an exemption to continue operations, pending the approval of our license application.
The Monetary Authority of Singapore (MAS) requires us to provide this risk warning to you as a customer of a digital payment token (DPT) service provider.
In Section 7.5, the Terms further adds that the company is not liable for any fluctuation in the market value of the supported tokens in their custody.
In the article entitled “How are my assets protected”, it describes the custodial solution for Cake DeFi.
Cake DeFi Wallet
Cake DeFi currently utilises the BitGo Custody wallet solution for all Cake DeFi user wallets, as can be seen on Cake DeFi’s ‘Balances’ page.
Upon installation of the app on BlueStacks, a video how to is presented.
We then verified our account via email and sms. Once verification is complete, we are then asked to verify our identity. This includes the following information:
- Mobile number
- Legal name
- Date of birth
- Country of residence
- Residential address
- Country of citizenship
- National ID or passport
- Proof of address
We looked for our Bitcoin wallet and opportunities to Buy, Deposit and Withdraw are available. However, these functions are only accessible once you’ve verified your account.
The options to earn from passive income come from:
- Liquidity mining
It is apparent that despite expectations for a DeFi solution, the app is actually very much centralized, custodial and not verifiable.
Tests performed by Daniel Andrei R. Garcia
Do your own research
In addition to reading our analysis, it is important to do your own checks. Before transferring any bitcoin to your wallet, look up reviews for the wallet you want to use. They should be easy to find. If they aren't, that itself is a reason to be extra careful.