I have been researching how to securely send and transfer ERC20 tokens from the contract address to a new user wallet. Tokens will be earned through participation on my platform. Based on results I would want to programmatically initiate the transfer of the tokens to the user wallets. For this I believe I need the private key of the contract address to be hosted within my application.
It seems as if this is a vulnerability on Eth, especially when some ICO’s are demonstrating thousands of pounds worth of value on the contract.
How do exchanges manage the buying and selling of your tokens for you? Do you have to provide them with the private key of the contract? It sounds insane to do this..
What’s the best and most secure approach to this?
Thanks in advance