ICONFilatest release: 1.0.4 ( 14th July 2021 ) last analysed 3rd November 2021 Custodial: The provider holds the keys
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Do your own research!
Try out searching for "lost bitcoins", "stole my money" or "scammers" together with the wallet's name, even if you think the wallet is generally trustworthy. For all the bigger wallets you will find accusations. Make sure you understand why they were made and if you are comfortable with the provider's reaction.
The Analysis ¶
ICONFi advertises itself as a way to earn interest by staking crypto in its platform.
You decide how to earn interest on your crypto assets. Choose a Flexible account for anytime withdrawals. Or opt for a Fixed account to access even higher interest rates. Stake your crypto tokens in TWO clicks.
From the FAQ (also found on the homepage):
What is ICONFi? ICONFi is a digital asset savings platform that provides simple & intuitive earn products so that anyone can easily multiply crypto assets.
How long does it take to withdraw? Withdrawal processing relating to the flexible products (BTC/ETH/USDT/USDC) will be done in one batch, once a day, and may take up to one full day depending on the timing of the individual withdrawal request.
We tried the app. The opening screens state that users can
store, deposit, withdraw cryptocurrencies at any time while continuously earning interest.
Before you can withdraw funds, the app states that it is required to complete both KYC and OTP.
Registering allows access to a “wallet.” Users can withdraw and deposit. However, there is no indication that users can view private keys or backup wallets.
This is an app for staking. It is possible to stake ICX tokens.
This app is custodial and thus not verifiable.
As the provider of this product holds the keys, verifiability of the product is not relevant to the security of the funds!
As part of our Methodology, we ask:Is the product self-custodial? If not, we tag it Custodial!
A custodial service is a service where the funds are held by a third party like the provider. The custodial service can at any point steal all the funds of all the users at their discretion. Our investigations stop there.
Some services might claim their setup is super secure, that they don’t actually have access to the funds, or that the access is shared between multiple parties. For our evaluation of it being a wallet, these details are irrelevant. They might be a trustworthy Bitcoin bank and they might be a better fit for certain users than being your own bank but our investigation still stops there as we are only interested in wallets.
Products that claim to be non-custodial but feature custodial accounts without very clearly marking those as custodial are also considered “custodial” as a whole to avoid misguiding users that follow our assessment.
This verdict means that the provider might or might not publish source code and maybe it is even possible to reproduce the build from the source code but as it is custodial, the provider already has control over the funds, so it is not a wallet where you would be in exclusive control of your funds.
We have to acknowledge that a huge majority of Bitcoiners are currently using custodial Bitcoin banks. If you do, please:
- Do your own research if the provider is trust-worthy!
- Check if you know at least enough about them so you can sue them when you have to!
- Check if the provider is under a jurisdiction that will allow them to release your funds when you need them?
- Check if the provider is taking security measures proportional to the amount of funds secured? If they have a million users and don’t use cold storage, that hot wallet is a million times more valuable for hackers to attack. A million times more effort will be taken by hackers to infiltrate their security systems.
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