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Bob The Magic Custodian
Summary: Everyone knows that when you give your assets to someone else, they always keep them safe. If this is true for individuals, it is certainly true for businesses. Custodians always tell the truth and manage funds properly. They won't have any interest in taking the assets as an exchange operator would. Auditors tell the truth and can't be misled. That's because organizations that are regulated are incapable of lying and don't make mistakes. First, some background. Here is a summary of how custodians make us more secure: Previously, we might give Alice our crypto assets to hold. There were risks:
Alice might take the assets and disappear.
Alice might spend the assets and pretend that she still has them (fractional model).
Alice might store the assets insecurely and they'll get stolen.
Alice might give the assets to someone else by mistake or by force.
Alice might lose access to the assets.
But "no worries", Alice has a custodian named Bob. Bob is dressed in a nice suit. He knows some politicians. And he drives a Porsche. "So you have nothing to worry about!". And look at all the benefits we get:
Alice can't take the assets and disappear (unless she asks Bob or never gives them to Bob).
Alice can't spend the assets and pretend that she still has them. (Unless she didn't give them to Bob or asks him for them.)
Alice can't store the assets insecurely so they get stolen. (After all - she doesn't have any control over the withdrawal process from any of Bob's systems, right?)
Alice can't give the assets to someone else by mistake or by force. (Bob will stop her, right Bob?)
Alice can't lose access to the funds. (She'll always be present, sane, and remember all secrets, right?)
See - all problems are solved! All we have to worry about now is:
Bob might take the assets and disappear.
Bob might spend the assets and pretend that he still has them (fractional model).
Bob might store the assets insecurely and they'll get stolen.
Bob might give the assets to someone else by mistake or by force.
Bob might lose access to the assets.
It's pretty simple. Before we had to trust Alice. Now we only have to trust Alice, Bob, and all the ways in which they communicate. Just think of how much more secure we are! "On top of that", Bob assures us, "we're using a special wallet structure". Bob shows Alice a diagram. "We've broken the balance up and store it in lots of smaller wallets. That way", he assures her, "a thief can't take it all at once". And he points to a historic case where a large sum was taken "because it was stored in a single wallet... how stupid". "Very early on, we used to have all the crypto in one wallet", he said, "and then one Christmas a hacker came and took it all. We call him the Grinch. Now we individually wrap each crypto and stick it under a binary search tree. The Grinch has never been back since." "As well", Bob continues, "even if someone were to get in, we've got insurance. It covers all thefts and even coercion, collusion, and misplaced keys - only subject to the policy terms and conditions." And with that, he pulls out a phone-book sized contract and slams it on the desk with a thud. "Yep", he continues, "we're paying top dollar for one of the best policies in the country!" "Can I read it?' Alice asks. "Sure," Bob says, "just as soon as our legal team is done with it. They're almost through the first chapter." He pauses, then continues. "And can you believe that sales guy Mike? He has the same year Porsche as me. I mean, what are the odds?" "Do you use multi-sig?", Alice asks. "Absolutely!" Bob replies. "All our engineers are fully trained in multi-sig. Whenever we want to set up a new wallet, we generate 2 separate keys in an air-gapped process and store them in this proprietary system here. Look, it even requires the biometric signature from one of our team members to initiate any withdrawal." He demonstrates by pressing his thumb into the display. "We use a third-party cloud validation API to match the thumbprint and authorize each withdrawal. The keys are also backed up daily to an off-site third-party." "Wow that's really impressive," Alice says, "but what if we need access for a withdrawal outside of office hours?" "Well that's no issue", Bob says, "just send us an email, call, or text message and we always have someone on staff to help out. Just another part of our strong commitment to all our customers!" "What about Proof of Reserve?", Alice asks. "Of course", Bob replies, "though rather than publish any blockchain addresses or signed transaction, for privacy we just do a SHA256 refactoring of the inverse hash modulus for each UTXO nonce and combine the smart contract coefficient consensus in our hyperledger lightning node. But it's really simple to use." He pushes a button and a large green checkmark appears on a screen. "See - the algorithm ran through and reserves are proven." "Wow", Alice says, "you really know your stuff! And that is easy to use! What about fiat balances?" "Yeah, we have an auditor too", Bob replies, "Been using him for a long time so we have quite a strong relationship going! We have special books we give him every year and he's very efficient! Checks the fiat, crypto, and everything all at once!" "We used to have a nice offline multi-sig setup we've been using without issue for the past 5 years, but I think we'll move all our funds over to your facility," Alice says. "Awesome", Bob replies, "Thanks so much! This is perfect timing too - my Porsche got a dent on it this morning. We have the paperwork right over here." "Great!", Alice replies. And with that, Alice gets out her pen and Bob gets the contract. "Don't worry", he says, "you can take your crypto-assets back anytime you like - just subject to our cancellation policy. Our annual management fees are also super low and we don't adjust them often". How many holes have to exist for your funds to get stolen? Just one. Why are we taking a powerful offline multi-sig setup, widely used globally in hundreds of different/lacking regulatory environments with 0 breaches to date, and circumventing it by a demonstrably weak third party layer? And paying a great expense to do so? If you go through the list of breaches in the past 2 years to highly credible organizations, you go through the list of major corporate frauds (only the ones we know about), you go through the list of all the times platforms have lost funds, you go through the list of times and ways that people have lost their crypto from identity theft, hot wallet exploits, extortion, etc... and then you go through this custodian with a fine-tooth comb and truly believe they have value to add far beyond what you could, sticking your funds in a wallet (or set of wallets) they control exclusively is the absolute worst possible way to take advantage of that security. The best way to add security for crypto-assets is to make a stronger multi-sig. With one custodian, what you are doing is giving them your cryptocurrency and hoping they're honest, competent, and flawlessly secure. It's no different than storing it on a really secure exchange. Maybe the insurance will cover you. Didn't work for Bitpay in 2015. Didn't work for Yapizon in 2017. Insurance has never paid a claim in the entire history of cryptocurrency. But maybe you'll get lucky. Maybe your exact scenario will buck the trend and be what they're willing to cover. After the large deductible and hopefully without a long and expensive court battle. And you want to advertise this increase in risk, the lapse of judgement, an accident waiting to happen, as though it's some kind of benefit to customers ("Free institutional-grade storage for your digital assets.")? And then some people are writing to the OSC that custodians should be mandatory for all funds on every exchange platform? That this somehow will make Canadians as a whole more secure or better protected compared with standard air-gapped multi-sig? On what planet? Most of the problems in Canada stemmed from one thing - a lack of transparency. If Canadians had known what a joke Quadriga was - it wouldn't have grown to lose $400m from hard-working Canadians from coast to coast to coast. And Gerald Cotten would be in jail, not wherever he is now (at best, rotting peacefully). EZ-BTC and mister Dave Smilie would have been a tiny little scam to his friends, not a multi-million dollar fraud. Einstein would have got their act together or been shut down BEFORE losing millions and millions more in people's funds generously donated to criminals. MapleChange wouldn't have even been a thing. And maybe we'd know a little more about CoinTradeNewNote - like how much was lost in there. Almost all of the major losses with cryptocurrency exchanges involve deception with unbacked funds. So it's great to see transparency reports from BitBuy and ShakePay where someone independently verified the backing. The only thing we don't have is:
ANY CERTAINTY BALANCES WEREN'T EXCLUDED. Quadriga's largest account was $70m. 80% of funds are in 20% of accounts (Pareto principle). All it takes is excluding a few really large accounts - and nobody's the wiser. A fractional platform can easily pass any audit this way.
ANY VISIBILITY WHATSOEVER INTO THE CUSTODIANS. BitBuy put out their report before moving all the funds to their custodian and ShakePay apparently can't even tell us who the custodian is. That's pretty important considering that basically all of the funds are now stored there.
ANY IDEA ABOUT THE OTHER EXCHANGES. In order for this to be effective, it has to be the norm. It needs to be "unusual" not to know. If obscurity is the norm, then it's super easy for people like Gerald Cotten and Dave Smilie to blend right in.
It's not complicated to validate cryptocurrency assets. They need to exist, they need to be spendable, and they need to cover the total balances. There are plenty of credible people and firms across the country that have the capacity to reasonably perform this validation. Having more frequent checks by different, independent, parties who publish transparent reports is far more valuable than an annual check by a single "more credible/official" party who does the exact same basic checks and may or may not publish anything. Here's an example set of requirements that could be mandated:
First report within 1 month of launching, another within 3 months, and further reports at minimum every 6 months thereafter.
No auditor can be repeated within a 12 month period.
All reports must be public, identifying the auditor and the full methodology used.
All auditors must be independent of the firm being audited with no conflict of interest.
Reports must include the percentage of each asset backed, and how it's backed.
The auditor publishes a hash list, which lists a hash of each customer's information and balances that were included. Hash is one-way encryption so privacy is fully preserved. Every customer can use this to have 100% confidence they were included.
If we want more extensive requirements on audits, these should scale upward based on the total assets at risk on the platform, and whether the platform has loaned their assets out.
There are ways to structure audits such that neither crypto assets nor customer information are ever put at risk, and both can still be properly validated and publicly verifiable. There are also ways to structure audits such that they are completely reasonable for small platforms and don't inhibit innovation in any way. By making the process as reasonable as possible, we can completely eliminate any reason/excuse that an honest platform would have for not being audited. That is arguable far more important than any incremental improvement we might get from mandating "the best of the best" accountants. Right now we have nothing mandated and tons of Canadians using offshore exchanges with no oversight whatsoever. Transparency does not prove crypto assets are safe. CoinTradeNewNote, Flexcoin ($600k), and Canadian Bitcoins ($100k) are examples where crypto-assets were breached from platforms in Canada. All of them were online wallets and used no multi-sig as far as any records show. This is consistent with what we see globally - air-gapped multi-sig wallets have an impeccable record, while other schemes tend to suffer breach after breach. We don't actually know how much CoinTrader lost because there was no visibility. Rather than publishing details of what happened, the co-founder of CoinTrader silently moved on to found another platform - the "most trusted way to buy and sell crypto" - a site that has no information whatsoever (that I could find) on the storage practices and a FAQ advising that “[t]rading cryptocurrency is completely safe” and that having your own wallet is “entirely up to you! You can certainly keep cryptocurrency, or fiat, or both, on the app.” Doesn't sound like much was learned here, which is really sad to see. It's not that complicated or unreasonable to set up a proper hardware wallet. Multi-sig can be learned in a single course. Something the equivalent complexity of a driver's license test could prevent all the cold storage exploits we've seen to date - even globally. Platform operators have a key advantage in detecting and preventing fraud - they know their customers far better than any custodian ever would. The best job that custodians can do is to find high integrity individuals and train them to form even better wallet signatories. Rather than mandating that all platforms expose themselves to arbitrary third party risks, regulations should center around ensuring that all signatories are background-checked, properly trained, and using proper procedures. We also need to make sure that signatories are empowered with rights and responsibilities to reject and report fraud. They need to know that they can safely challenge and delay a transaction - even if it turns out they made a mistake. We need to have an environment where mistakes are brought to the surface and dealt with. Not one where firms and people feel the need to hide what happened. In addition to a knowledge-based test, an auditor can privately interview each signatory to make sure they're not in coercive situations, and we should make sure they can freely and anonymously report any issues without threat of retaliation. A proper multi-sig has each signature held by a separate person and is governed by policies and mutual decisions instead of a hierarchy. It includes at least one redundant signature. For best results, 3of4, 3of5, 3of6, 4of5, 4of6, 4of7, 5of6, or 5of7. History has demonstrated over and over again the risk of hot wallets even to highly credible organizations. Nonetheless, many platforms have hot wallets for convenience. While such losses are generally compensated by platforms without issue (for example Poloniex, Bitstamp, Bitfinex, Gatecoin, Coincheck, Bithumb, Zaif, CoinBene, Binance, Bitrue, Bitpoint, Upbit, VinDAX, and now KuCoin), the public tends to focus more on cases that didn't end well. Regardless of what systems are employed, there is always some level of risk. For that reason, most members of the public would prefer to see third party insurance. Rather than trying to convince third party profit-seekers to provide comprehensive insurance and then relying on an expensive and slow legal system to enforce against whatever legal loopholes they manage to find each and every time something goes wrong, insurance could be run through multiple exchange operators and regulators, with the shared interest of having a reputable industry, keeping costs down, and taking care of Canadians. For example, a 4 of 7 multi-sig insurance fund held between 5 independent exchange operators and 2 regulatory bodies. All Canadian exchanges could pay premiums at a set rate based on their needed coverage, with a higher price paid for hot wallet coverage (anything not an air-gapped multi-sig cold wallet). Such a model would be much cheaper to manage, offer better coverage, and be much more reliable to payout when needed. The kind of coverage you could have under this model is unheard of. You could even create something like the CDIC to protect Canadians who get their trading accounts hacked if they can sufficiently prove the loss is legitimate. In cases of fraud, gross negligence, or insolvency, the fund can be used to pay affected users directly (utilizing the last transparent balance report in the worst case), something which private insurance would never touch. While it's recommended to have official policies for coverage, a model where members vote would fully cover edge cases. (Could be similar to the Supreme Court where justices vote based on case law.) Such a model could fully protect all Canadians across all platforms. You can have a fiat coverage governed by legal agreements, and crypto-asset coverage governed by both multi-sig and legal agreements. It could be practical, affordable, and inclusive. Now, we are at a crossroads. We can happily give up our freedom, our innovation, and our money. We can pay hefty expenses to auditors, lawyers, and regulators year after year (and make no mistake - this cost will grow to many millions or even billions as the industry grows - and it will be borne by all Canadians on every platform because platforms are not going to eat up these costs at a loss). We can make it nearly impossible for any new platform to enter the marketplace, forcing Canadians to use the same stagnant platforms year after year. We can centralize and consolidate the entire industry into 2 or 3 big players and have everyone else fail (possibly to heavy losses of users of those platforms). And when a flawed security model doesn't work and gets breached, we can make it even more complicated with even more people in suits making big money doing the job that blockchain was supposed to do in the first place. We can build a system which is so intertwined and dependent on big government, traditional finance, and central bankers that it's future depends entirely on that of the fiat system, of fractional banking, and of government bail-outs. If we choose this path, as history has shown us over and over again, we can not go back, save for revolution. Our children and grandchildren will still be paying the consequences of what we decided today. Or, we can find solutions that work. We can maintain an open and innovative environment while making the adjustments we need to make to fully protect Canadian investors and cryptocurrency users, giving easy and affordable access to cryptocurrency for all Canadians on the platform of their choice, and creating an environment in which entrepreneurs and problem solvers can bring those solutions forward easily. None of the above precludes innovation in any way, or adds any unreasonable cost - and these three policies would demonstrably eliminate or resolve all 109 historic cases as studied here - that's every single case researched so far going back to 2011. It includes every loss that was studied so far not just in Canada but globally as well. Unfortunately, finding answers is the least challenging part. Far more challenging is to get platform operators and regulators to agree on anything. My last post got no response whatsoever, and while the OSC has told me they're happy for industry feedback, I believe my opinion alone is fairly meaningless. This takes the whole community working together to solve. So please let me know your thoughts. Please take the time to upvote and share this with people. Please - let's get this solved and not leave it up to other people to do. Facts/background/sources (skip if you like):
The inspiration for the paragraph about splitting wallets was an actual quote from a Canadian company providing custodial services in response to the OSC consultation paper: "We believe that it will be in the in best interests of investors to prohibit pooled crypto assets or ‘floats’. Most Platforms pool assets, citing reasons of practicality and expense. The recent hack of the world’s largest Platform – Binance – demonstrates the vulnerability of participants’ assets when such concessions are made. In this instance, the Platform’s entire hot wallet of Bitcoins, worth over $40 million, was stolen, facilitated in part by the pooling of client crypto assets." "the maintenance of participants (and Platform) crypto assets across multiple wallets distributes the related risk and responsibility of security - reducing the amount of insurance coverage required and making insurance coverage more readily obtainable". For the record, their reply also said nothing whatsoever about multi-sig or offline storage.
In addition to the fact that the $40m hack represented only one "hot wallet" of Binance, and they actually had the vast majority of assets in other wallets (including mostly cold wallets), multiple real cases have clearly demonstrated that risk is still present with multiple wallets. Bitfinex, VinDAX, Bithumb, Altsbit, BitPoint, Cryptopia, and just recently KuCoin all had multiple wallets breached all at the same time, and may represent a significantly larger impact on customers than the Binance breach which was fully covered by Binance. To represent that simply having multiple separate wallets under the same security scheme is a comprehensive way to reduce risk is just not true.
Private insurance has historically never covered a single loss in the cryptocurrency space (at least, not one that I was able to find), and there are notable cases where massive losses were not covered by insurance. Bitpay in 2015 and Yapizon in 2017 both had insurance policies that didn't pay out during the breach, even after a lengthly court process. The same insurance that ShakePay is presently using (and announced to much fanfare) was describe by their CEO himself as covering “physical theft of the media where the private keys are held,” which is something that has never historically happened. As was said with regard to the same policy in 2018 - “I don’t find it surprising that Lloyd’s is in this space,” said Johnson, adding that to his mind the challenge for everybody is figuring out how to structure these policies so that they are actually protective. “You can create an insurance policy that protects no one – you know there are so many caveats to the policy that it’s not super protective.”
The most profitable policy for a private insurance company is one with the most expensive premiums that they never have to pay a claim on. They have no inherent incentive to take care of people who lost funds. It's "cheaper" to take the reputational hit and fight the claim in court. The more money at stake, the more the insurance provider is incentivized to avoid payout. They're not going to insure the assets unless they have reasonable certainty to make a profit by doing so, and they're not going to pay out a massive sum unless it's legally forced. Private insurance is always structured to be maximally profitable to the insurance provider.
The circumvention of multi-sig was a key factor in the massive Bitfinex hack of over $60m of bitcoin, which today still sits being slowly used and is worth over $3b. While Bitfinex used a qualified custodian Bitgo, which was and still is active and one of the industry leaders of custodians, and they set up 2 of 3 multi-sig wallets, the entire system was routed through Bitfinex, such that Bitfinex customers could initiate the withdrawals in a "hot" fashion. This feature was also a hit with the hacker. The multi-sig was fully circumvented.
Bitpay in 2015 was another example of a breach that stole 5,000 bitcoins. This happened not through the exploit of any system in Bitpay, but because the CEO of a company they worked with got their computer hacked and the hackers were able to request multiple bitcoin purchases, which Bitpay honoured because they came from the customer's computer legitimately. Impersonation is a very common tactic used by fraudsters, and methods get more extreme all the time.
A notable case in Canada was the Canadian Bitcoins exploit. Funds were stored on a server in a Rogers Data Center, and the attendee was successfully convinced to reboot the server "in safe mode" with a simple phone call, thus bypassing the extensive security and enabling the theft.
The very nature of custodians circumvents multi-sig. This is because custodians are not just having to secure the assets against some sort of physical breach but against any form of social engineering, modification of orders, fraudulent withdrawal attempts, etc... If the security practices of signatories in a multi-sig arrangement are such that the breach risk of one signatory is 1 in 100, the requirement of 3 independent signatures makes the risk of theft 1 in 1,000,000. Since hackers tend to exploit the weakest link, a comparable custodian has to make the entry and exit points of their platform 10,000 times more secure than one of those signatories to provide equivalent protection. And if the signatories beef up their security by only 10x, the risk is now 1 in 1,000,000,000. The custodian has to be 1,000,000 times more secure. The larger and more complex a system is, the more potential vulnerabilities exist in it, and the fewer people can understand how the system works when performing upgrades. Even if a system is completely secure today, one has to also consider how that system might evolve over time or work with different members.
By contrast, offline multi-signature solutions have an extremely solid record, and in the entire history of cryptocurrency exchange incidents which I've studied (listed here), there has only been one incident (796 exchange in 2015) involving an offline multi-signature wallet. It happened because the customer's bitcoin address was modified by hackers, and the amount that was stolen ($230k) was immediately covered by the exchange operators. Basically, the platform operators were tricked into sending a legitimate withdrawal request to the wrong address because hackers exploited their platform to change that address. Such an issue would not be prevented in any way by the use of a custodian, as that custodian has no oversight whatsoever to the exchange platform. It's practical for all exchange operators to test large withdrawal transactions as a general policy, regardless of what model is used, and general best practice is to diagnose and fix such an exploit as soon as it occurs.
False promises on the backing of funds played a huge role in the downfall of Quadriga, and it's been exposed over and over again (MyCoin, PlusToken, Bitsane, Bitmarket, EZBTC, IDAX). Even today, customers have extremely limited certainty on whether their funds in exchanges are actually being backed or how they're being backed. While this issue is not unique to cryptocurrency exchanges, the complexity of the technology and the lack of any regulation or standards makes problems more widespread, and there is no "central bank" to come to the rescue as in the 2008 financial crisis or during the great depression when "9,000 banks failed".
In addition to fraudulent operations, the industry is full of cases where operators have suffered breaches and not reported them. Most recently, Einstein was the largest case in Canada, where ongoing breaches and fraud were perpetrated against the platform for multiple years and nobody found out until the platform collapsed completely. While fraud and breaches suck to deal with, they suck even more when not dealt with. Lack of visibility played a role in the largest downfalls of Mt. Gox, Cryptsy, and Bitgrail. In some cases, platforms are alleged to have suffered a hack and keep operating without admitting it at all, such as CoinBene.
It surprises some to learn that a cryptographic solution has already existed since 2013, and gained widespread support in 2014 after Mt. Gox. Proof of Reserves is a full cryptographic proof that allows any customer using an exchange to have complete certainty that their crypto-assets are fully backed by the platform in real-time. This is accomplished by proving that assets exist on the blockchain, are spendable, and fully cover customer deposits. It does not prove safety of assets or backing of fiat assets.
If we didn't care about privacy at all, a platform could publish their wallet addresses, sign a partial transaction, and put the full list of customer information and balances out publicly. Customers can each check that they are on the list, that the balances are accurate, that the total adds up, and that it's backed and spendable on the blockchain. Platforms who exclude any customer take a risk because that customer can easily check and see they were excluded. So together with all customers checking, this forms a full proof of backing of all crypto assets.
However, obviously customers care about their private information being published. Therefore, a hash of the information can be provided instead. Hash is one-way encryption. The hash allows the customer to validate inclusion (by hashing their own known information), while anyone looking at the list of hashes cannot determine the private information of any other user. All other parts of the scheme remain fully intact. A model like this is in use on the exchange CoinFloor in the UK.
A Merkle tree can provide even greater privacy. Instead of a list of balances, the balances are arranged into a binary tree. A customer starts from their node, and works their way to the top of the tree. For example, they know they have 5 BTC, they plus 1 other customer hold 7 BTC, they plus 2-3 other customers hold 17 BTC, etc... until they reach the root where all the BTC are represented. Thus, there is no way to find the balances of other individual customers aside from one unidentified customer in this case.
Proposals such as this had the backing of leaders in the community including Nic Carter, Greg Maxwell, and Zak Wilcox. Substantial and significant effort started back in 2013, with massive popularity in 2014. But what became of that effort? Very little. Exchange operators continue to refuse to give visibility. Despite the fact this information can often be obtained through trivial blockchain analysis, no Canadian platform has ever provided any wallet addresses publicly. As described by the CEO of Newton "For us to implement some kind of realtime Proof of Reserves solution, which I'm not opposed to, it would have to ... Preserve our users' privacy, as well as our own. Some kind of zero-knowledge proof". Kraken describes here in more detail why they haven't implemented such a scheme. According to professor Eli Ben-Sasson, when he spoke with exchanges, none were interested in implementing Proof of Reserves.
And yet, Kraken's places their reasoning on a page called "Proof of Reserves". More recently, both BitBuy and ShakePay have released reports titled "Proof of Reserves and Security Audit". Both reports contain disclaimers against being audits. Both reports trust the customer list provided by the platform, leaving the open possibility that multiple large accounts could have been excluded from the process. Proof of Reserves is a blockchain validation where customers see the wallets on the blockchain. The report from Kraken is 5 years old, but they leave it described as though it was just done a few weeks ago. And look at what they expect customers to do for validation. When firms represent something being "Proof of Reserve" when it's not, this is like a farmer growing fruit with pesticides and selling it in a farmers market as organic produce - except that these are people's hard-earned life savings at risk here. Platforms are misrepresenting the level of visibility in place and deceiving the public by their misuse of this term. They haven't proven anything.
Fraud isn't a problem that is unique to cryptocurrency. Fraud happens all the time. Enron, WorldCom, Nortel, Bear Stearns, Wells Fargo, Moser Baer, Wirecard, Bre-X, and Nicola are just some of the cases where frauds became large enough to become a big deal (and there are so many countless others). These all happened on 100% reversible assets despite regulations being in place. In many of these cases, the problems happened due to the over-complexity of the financial instruments. For example, Enron had "complex financial statements [which] were confusing to shareholders and analysts", creating "off-balance-sheet vehicles, complex financing structures, and deals so bewildering that few people could understand them". In cryptocurrency, we are often combining complex financial products with complex technologies and verification processes. We are naïve if we think problems like this won't happen. It is awkward and uncomfortable for many people to admit that they don't know how something works. If we want "money of the people" to work, the solutions have to be simple enough that "the people" can understand them, not so confusing that financial professionals and technology experts struggle to use or understand them.
For those who question the extent to which an organization can fool their way into a security consultancy role, HB Gary should be a great example to look at. Prior to trying to out anonymous, HB Gary was being actively hired by multiple US government agencies and others in the private sector (with glowing testimonials). The published articles and hosted professional security conferences. One should also look at this list of data breaches from the past 2 years. Many of them are large corporations, government entities, and technology companies. These are the ones we know about. Undoubtedly, there are many more that we do not know about. If HB Gary hadn't been "outted" by anonymous, would we have known they were insecure? If the same breach had happened outside of the public spotlight, would it even have been reported? Or would HB Gary have just deleted the Twitter posts, brought their site back up, done a couple patches, and kept on operating as though nothing had happened?
In the case of Quadriga, the facts are clear. Despite past experience with platforms such as MapleChange in Canada and others around the world, no guidance or even the most basic of a framework was put in place by regulators. By not clarifying any sort of legal framework, regulators enabled a situation where a platform could be run by former criminal Mike Dhanini/Omar Patryn, and where funds could be held fully unchecked by one person. At the same time, the lack of regulation deterred legitimate entities from running competing platforms and Quadriga was granted a money services business license for multiple years of operation, which gave the firm the appearance of legitimacy. Regulators did little to protect Canadians despite Quadriga failing to file taxes from 2016 onward. The entire administrative team had resigned and this was public knowledge. Many people had suspicions of what was going on, including Ryan Mueller, who forwarded complaints to the authorities. These were ignored, giving Gerald Cotten the opportunity to escape without justice.
There are multiple issues with the SOC II model including the prohibitive cost (you have to find a third party accounting firm and the prices are not even listed publicly on any sites), the requirement of operating for a year (impossible for new platforms), and lack of any public visibility (SOC II are private reports that aren't shared outside the people in suits).
Securities frameworks are expensive. Sarbanes-Oxley is estimated to cost $5.1 million USD/yr for the average Fortune 500 company in the United States. Since "Fortune 500" represents the top 500 companies, that means well over $2.55 billion USD (~$3.4 billion CAD) is going to people in suits. Isn't the problem of trust and verification the exact problem that the blockchain is supposed to solve?
To use Quadriga as justification for why custodians or SOC II or other advanced schemes are needed for platforms is rather silly, when any framework or visibility at all, or even the most basic of storage policies, would have prevented the whole thing. It's just an embarrassment.
We are now seeing regulators take strong action. CoinSquare in Canada with multi-million dollar fines. BitMex from the US, criminal charges and arrests. OkEx, with full disregard of withdrawals and no communication. Who's next?
We have a unique window today where we can solve these problems, and not permanently destroy innovation with unreasonable expectations, but we need to act quickly. This is a unique historic time that will never come again.
Daily analysis of cryptocurrencies 20191014(Market index 37 — Fear state)
https://preview.redd.it/3ygnthtqths31.jpg?width=1200&format=pjpg&auto=webp&s=e681b3df0e1fe4547fc85547b4d62e4c6bffa481 https://coin360.com/ UPbit Operator Dunamu To Launch Comprehensive OTC Platform Dunamu, an operator of global cryptocurrency exchange UPbit, announced Oct 14 that it planed to launch a comprehensive over-the-counter trading platform that deals with all types of unlisted stocks. According to the UPbit operator, it will jointly launch the platform, which will be available in the form of an App, with local brokerage Samsung Securities and big data analytics company Deep Search in the end of October. FSB Chair Reports To G20 Finance Ministers And Central Bank Governors On Oct 13, the Financial Stability Board (FSB) published a letter from its Chair Randal K. Quarles to G20 Finance Ministers and Central Bank Governors ahead of their meetings in Washington D.C. this week. The letter highlights three areas of the FSB’s work, which include the potential financial stability issues from global stablecoins. It mentions that stablecoin projects of potentially global reach and magnitude must meet the highest regulatory standards and be subject to prudential supervision and oversight. “Possible regulatory gaps should be assessed and addressed as a matter of priority. The FSB has formed a working group, to inform regulatory policy approaches that harness the benefits of financial innovation, while containing associated risks for the financial system, and advise on multilateral responses as necessary. The FSB will submit a consultative report to the G20 in April and a final report in July 2020,” the report reads. US Senators Threaten CEOs: Dump Libra Or Face Regulatory Wrath Facebook’s crypto woes are deepening as more partners are jumping the Libra ship before it even sets sail. It appears that US senators are urging them to do so as letters to CEOs have been leaked online. Some say the government is stifling innovation while others agree the crypto project is just dangerous. It seems that a number of US senators have been privately contacting Libra Association members urging them to dump the project like a hot rock. Letters shared online by VanEck digital asset strategist Gabor Gurbacs highlight the extent US politicians will go to in efforts to prevent Libra ever launching. Report: G7 Says ‘Global Stablecoins’ Pose Threat To Financial Stability The G7 group of nations has reportedly drafted a report which says that “global stablecoins” pose a threat to the global financial system. According to the BBC on Oct 13, a draft report from the G7 outlined the various risks associated with digital currencies. It also said that, even if member firms of the governing Libra Association addressed regulatory concerns, it may not get approval from the necessary regulators, stating: “The G7 believe that no stablecoin project should begin operation until the legal, regulatory and oversight challenges and risks are adequately addressed. […] Addressing such risks is not necessarily a guarantee of regulatory approval for a stablecoin arrangement.”
Encrypted project calendar（October 14, 2019）
BCH/Bitcoin Cash:The ChainPoint 19 conference will be held in Armenia from October 14th to 15th.Veros (VRS):14 October 2019 Launch of News Service “Launch of the VEROS NEWS service.”Skycoin (SKY):14 October 2019 Hardware Release “New hardware product launch.”Bibox Token (BIX):14 October 2019 Weekly Report “Check out Bibox Weekly Report (Vol. 67 2019.09.28–2019.10.11)”
Encrypted project calendar（October 15, 2019）
RUFF/RUFF Token:Ruff will end the three-month early bird program on October 15thKAT/Kambria:Kambria (KAT) exchanges ERC20 KAT for a 10% bonus on BEP2 KAT-7BB, and the token exchange reward will end on October 15.BTC/Bitcoin:The Blockchain Technology Investment Summit (CIS) will be held in Los Angeles from October 15th to 16th.OTOCASH (OTO):15 October 2019 Escodex Shutdown “ All OTO HOLDERs who have assets on ESCODEX EXCHANGE to immediately withdraw your assets before October 15th, 2019 4:00 PM”(CRYPTO):15 October 2019 Hard Fork Summit Hard Fork Summit 2019 by TNW . “Where finance and business meets tech.” Amsterdam, October 15–17.Cardano (ADA):15 October 2019 NYC Meetup “Next week on October 15th Nathan Kaiser, Chairperson of the Cardano Foundation, will be in attendance to meet community members in NYCFunFair (FUN):15 October 2019 Marketing AMA “The FunFair Marketing AMA… will be held on Tuesday the 15th of October at 2pm in the Live team chat channel on DiscordArk (ARK):15 October 2019 ARK Core v2.6 on Devnet “We are very excited to announce #ARK Core v2.6 will be launching on #Devnet, October 15th, 2019! “DigiByte (DGB):15 October 2019 BitMart Listing DigiByte (DGB) will be listed on BitMart Exchange on October 15, 2019. The following trading pair will be available: DGB/BTC.ThoreNext (THX):15 October 2019 Staking Goes Live “Staking live from 15 OCT 2019.”
Encrypted project calendar（October 16, 2019）
BTC/Bitcoin:The 2019 Blockchain Life Summit will be held in Moscow, Russia from October 16th to 17th.MIOTA/IOTA:IOTA (MIOTA) IOTA will host a community event on the theme of “Technology Problem Solving and Testing IoT Devices” at the University of Southern California in Los Angeles on October 16.ETH/Ethereum:Ethereum launches Istanbul (Istanbul) main network upgrade, this main network upgrade involves 6 code upgrades.QTUM/Qtum:Qtum (QTUM) Qtum main network hard fork is scheduled for October 16.(CRYPTO): and 1 other 16 October 2019 Supply Chains Unblocked Supply Chains Unblocked in London from 9:30 AM — 6 PM.Binance Coin (BNB):16 October 2019 Singapore Meetup “Bring your friends to come along with, & it will be FUN! With snacks and drinks.”IoTeX (IOTX):16 October 2019 Mainet Beta “The next evolution of IoTeX blockchain, secure IoT hardware, and decentralized identity is coming October 16 — mark your calendars.”Selfkey (KEY):16 October 2019 Corporate Wallet Release “Soon, wallet users will be able to manage corporate profiles and identity attributes.”Cardano (ADA):16 October 2019 Washington D.C. Meetup “Nathan Kaiser, Chairperson of the Cardano Foundation, will join the community in Washington DC on Oct 16, and talk about the recent
Encrypted project calendar（October 17, 2019）
Holo (HOT):17 October 2019 Redgrid AMA “Join us for the AMA with RedGrid on October 17th. Submit your questions before the AMA on our Holochain Dev Forum.”IOST (IOST):17 October 2019 Breeding Competition Ends “Join IOST 2nd Breeding Competition by@FishChainGamenow! The competition only lasts till 17 Oct”Aragon (ANT):17 October 2019 Seoul Meetup “You are invited to join@licuendefor a meetup and presentation on ‘Aragon and DAOs: What’s next after ICOs and DeFi?’”Skycoin (SKY):17 October 2019 NYC Skywire Meetup NYC Skywire Mainnet Meetup in NYC from 6–8 PM.Horizen (ZEN):17 October 2019 Weekly Insider Team updates at 3:30 PM UTC/ 11:30 AM EDT: Engineering, Node network, Product/UX, Helpdesk, Legal, BD, Marketing, CEO Closing thoughts, AMA.
Encrypted project calendar（October 18, 2019）
BTC/Bitcoin:The SEC will give a pass on the VanEck/SolidX ETF on October 18th and make a final decisionHB/HeartBout:HeartBout (HB) will officially release the Android version of the HeartBout app on October 18.OKB (OKB):18 October 2019 Rotterdam Meetup “Meet us in Rotterdam on 18 Oct as we partner up with Crypto010 Meetup to bring you a talk on ‘Decentralized Finance’.”HeartBout (HB):18 October 2019 Android Version “18th of October 2019 will be officially released Android version of HeartBout app.”BTU Protocol (BTU):and 2 others 18 October 2019 Paris Blockchain Summit The event will gather major international key players of the Blockchain ecosystem including well-known influencers, investors, government…
Encrypted project calendar（October 19, 2019）
PI/PCHAIN Network:The PCHAIN (PI) backbone (Phase 5, 82 nodes, 164, 023, 802 $ PI, 7 candidates) will begin on October 19.LINK/ChainLink:Diffusion 2019 will be held in Berlin, Germany from October 19th to 20thDeepBrain Chain (DBC):19 October 2019 (or earlier) Deploy Main Chain “Deploy Main Chain,” during the third week of October.General Event (CRYPTO):and 1 other 19 October 2019Free State Blockchain “This “unconference” style event brings together some of the top financial tech innovators, researchers, company leaders, and other…”PCHAIN (PI):19 October 2019 Main Chain Voting “Main chain: Epoch 5, 82 nodes, 164,023,802 $PI, 7 Candidates, voting will start on Oct. 19th.”Nash Exchange (NEX):19 October 2019 Nash Anniversary Nash will present their work from the third quarter of 2019. Team members will be present and to answer your questions in person.
Encrypted project calendar（October 20, 2019）
GameCredits (GAME):20 October 2019 (or earlier) Mining Reward Drop GameCredits mining reward will be cut in half at block 2519999 (~October 20). This will be the 4th halvening of the GAME mining reward!Aeternity (AE):20 October 2019 Starfleet 3 App Deadline #Starfleet3 is happening in Malta and you have by October 20th to apply!
Encrypted project calendar（October 21, 2019）
KNC/Kyber Network:The official online hackathon of the Kyber Network (KNC) project will end on October 21st, with more than $42,000 in prize money.Horizen (ZEN):21 October 2019 Sidechains Alpha Release Horizen releasing the alpha version of industry first decentralized and unfederated sidechains.Horizen (ZEN):21 October 2019 Updated Whitepaper Horizen releasing an updated whitepaper.
Encrypted project calendar（October 22, 2019）
ZRX/0x:The 0x protocol (ZRX) Pantera blockchain summit will be held on October 22.
Encrypted project calendar（October 23, 2019）
MIOTA/IOTA:IOTA (MIOTA) IOTA will host a community event on October 23rd at the University of Southern California in Los Angeles with the theme “Connecting the I3 Market and Experiencing Purchase and Sales Data.”BTC/Bitcoin:The WBS World Blockchain Summit (Middle East) will be held in Dubai from October 23rd to 24th.Cardano (ADA) and 1 other:23 October 2019 WBS Dubai “One of a kind gathering of 500+ curated & pre-qualified investors, CEOs, CIOs, CTOs, Heads of Blockchain, Chief Digital Officers
Encrypted project calendar（October 24, 2019）
BCN/Bytecoin:Bytecoin (BCN) released the hidden amount of the Bytecoin block network on October 24.
Encrypted project calendar（October 25, 2019）
ADA/Cardano:Cardano (ADA) The Ada community will host a community gathering in the Dominican Republic for the first time on October 25.
Encrypted project calendar（October 26, 2019）
KAT/Kambria:Kambria (KAT) Kambria will host the 2019 Southern California Artificial Intelligence and Data Science Conference in Los Angeles on October 26th with IDEAS.BTC/Bitcoin:CoinAgenda Global Summit will be held in Las Vegas from October 26th to 28th
Encrypted project calendar（October 28, 2019）
LTC/Litecoin:Litecoin (LTC) 2019 Litecoin Summit will be held from October 28th to October 29th in Las Vegas, USABTC/Bitcoin:Mt.Gox changes the debt compensation plan submission deadline to October 28ZEC/Zcash:Zcash (ZEC) will activate the Blossom Agreement on October 28th
Encrypted project calendar（October 29, 2019）
BTC/Bitcoin:The 2nd World Encryption Conference (WCC) will be held in Las Vegas from October 29th to 31st.
Encrypted project calendar（October 30, 2019）
MIOTA/IOTA:IOTA (MIOTA) IOTA will host a community event on October 30th at the University of Southern California in Los Angeles on the topic “How to store data on IOTA Tangle.”
Encrypted project calendar（November 1, 2019）
INS/Insolar:The Insolar (INS) Insolar wallet and the redesigned Insolar Block Explorer will be operational on November 1, 2019.
Encrypted project calendar（November 6, 2019）
STEEM/Steem:The Steem (STEEM) SteemFest 4 conference will be held in Bangkok from November 6th to 10th.
Encrypted project calendar（November 8, 2019）
BTC/Bitcoin:The 2nd Global Digital Mining Summit will be held in Frankfurt, Germany from October 8th to 10th.
Encrypted project calendar（November 9, 2019）
CENNZ/Centrality:Centrality (CENNZ) will meet in InsurTechNZ Connect — Insurance and Blockchain on October 9th in Auckland.
https://preview.redd.it/roxxrqbuths31.png?width=504&format=png&auto=webp&s=c94149f1d2f662508b925a59ec31d863731918fb This past week, we saw a nasty decline from the $8,950 zone in bitcoin against the US Dollar. The price declined heavily and broke the key $8,500 support area. Moreover, there was a close below the $8,500 level and the 100 hourly simple moving average. It opened the doors for more losses below the $8,400 and $8,350 support levels. Recently, there was a recovery above the $8,400 level, but the price failed to gain pace above $8,450. As a result, there was a fresh decline from the $8,472 high. During the decline, there was a break below a key ascending channel with support near $8,340 on the hourly chart of the BTC/USD pair. The pair traded as low as $8,146 and it is currently correcting higher. It broke the $8,200 level and the 23.6% Fib retracement level of the recent decline from the $8,472 high to $8,146 low. At the moment, the price is testing the $8,300 area. Besides, it seems like the 50% Fib retracement level of the recent decline from the $8,472 high to $8,146 low is acting as a resistance. On the upside, there are many hurdles forming near the $8,350 and $8,400 levels. The key resistance is near the $8,400 level and the 100 hourly SMA. It also coincides with the 76.4% Fib retracement level of the recent decline from the $8,472 high to $8,146 low. Therefore, a clear close above the $8,400 level might start a decent recovery. The next key resistance is near the $8,500 level, above which the price could test the $8,800 resistance. Conversely, if the price fails to recover above $8,350 or $8,400, it could resume its decline. An immediate support is near the $8,200 level. Review previous articles:https://firstname.lastname@example.org Telegram： https://t.me/Lay126 Twitter：https://twitter.com/mianhuai8 Facebook：https://www.facebook.com/profile.php?id=100022246432745 Reddi：https://www.reddit.com/useliuidaxmn LinkedIn：https://www.linkedin.com/in/liu-wei-294a12176/
Daily analysis of cryptocurrencies 20191027 (Market index 50 — Neutral state)
https://preview.redd.it/bgj3hxy1u6v31.png?width=400&format=png&auto=webp&s=d2fbdee5918290e79b62010dabb94148c761439d Video Lessons Targeting Blockchain Technology Go Live On CCPPD’s Platform Following the news that XI Jinping, Chinese President and General Secretary of the Communist Party of China, addressed the importance of blockchain in making technological breakthroughs at the eighteenth group learning event organized by the Political Bureau of the Central Committee Oct 24, the Xuexi.cn platform led by the Publicity Department of the Central Committee of the Communist Party of China, or CCPPD, announced Oct 26 the launch of the video lessons targeting the blockchain technology. The videos with a total of 25 lessons mainly include the preliminary introduction to the blockchain technology, the consensus agreement, Bitcoin, Ethereum and smart contracts, blockchain performance improvement, blockchain security, the basic knowledge of big data, in-depth analysis of blockchain instances, as well as the concrete programming code examples. The Bitcoin Financing Case Accepted By Chinese Court For The First Time A loan dispute caused by the Bitcoin pledge has been put on file in Wuchang District People’s Court, Hubei Province (lying in central China). According to the indictment, the defendant pledged Bitcoin to borrow money from the plaintiff to bet on the rise of the king coin. During the Bitcoin decline cycle in 2018, the plaintiff took measures to liquidate the position forcibly, but still suffered some losses. The defendant does not acknowledge the loan relationship, falling to a material breach. Lawyer SUN Jun from Shanghai SHENHAO Law firm indicated that the financial attribute of Bitcoin would be recognized for the first time in China. For New Cryptography Law, China Took A Big Step In Right Direction, CZ Comments ZHAO Changpeng, also known as CZ, founder of Binance, reposted an article released by CoinDesk and titled “China’s Congress Passes Cryptography Law, Effective Jan. 1, 2020.” Regarding the issue, ZHAO commented, “This is big! The country with the biggest population on Earth, and one of the highest GDP growth in recent years, just took a big step in the right direction. What is your country gonna do? Follow or get left behind?” Baidu Search Index For Blockchain Up By 894% In Past 7 Days Amid President XI Highlighting Blockchain Citing data by Baidu Search Index, in the past seven days, daily average searches for the word “Bitcoin” were 31,955, which was 108% more than that of the previous year and 60% more than that of the previous week; daily average searches for the word “blockchain” was 42,444, which was 349% more than that of the previous year and 894% more than that of the previous week. As previously reported by CoinNess.com, Chinese President XI Jinping said on Oct 24 that China would put more focus on blockchain development. Note: Data offered by Baidu Search Index shows recent popular topics/trends in China.
Encrypted project calendar（October 27, 2019）
ICON (ICX):27 October 2019 Money 20/20 USA Event Money 20/20 USA in Las Vegas from October 27–30.Aeternity (AE):and 5 others 27 October 2019 CoinAgenda ConferenceCoinAgenda conference in Las Vegas from October 26–28.Electroneum (ETN):27 October 2019 KRON-TV Interview “… You can watch Richard Ells interview with Jane King on KRON-TV in San Francisco, 6:30am October 27th.”Hype Token (HYPE):27 October 2019 Token Voting Event Voting for HYPE Token’s burning % and daily freezing rewards % for November is now live! Freeze tokens to vote & receive daily rewards.
Encrypted project calendar（October 28, 2019）
LTC/Litecoin:Litecoin (LTC) 2019 Litecoin Summit will be held from October 28th to October 29th in Las Vegas, USABTC/Bitcoin:Mt.Gox changes the debt compensation plan submission deadline to October 28ZEC/Zcash:Zcash (ZEC) will activate the Blossom Agreement on October 28thStellar (XLM):28 October 2019 Protocol 12 Upgrade Vote Horizon v0.22.0 has been released, which supports Protocol 12. This gives everyone ample time to prepare for the Protocol 12 upgrade voteCelsius (CEL)and 3 others: 28 October 2019 Litecoin Summit “…The Litecoin Summit offers two fun, jam-packed days with something for everyone.”XFOC (XFOC):The IDAX platform will be online XFOC and will open the XFOC/USDT trading pair at 13:00 on October 28.MEDIUM (MDM):The IDAX platform lists MDM and will open MDM/BTC trading pairs on October 28th at 15:00.ZB/ ZB Blockchain:The “2019 Hamburg Intercontinental Dialogue Conference” hosted by ZB.com will be held from October 28th to November 9th at the Four Seasons Hotel Hamburg, Germany.BQT (BQTX)：28 October 2019 Down for Maintenance BQTX.com will be down for maintenance on the 28th of October from 7 to 12am UTC.
Encrypted project calendar（October 29, 2019）
BTC/Bitcoin:The 2nd World Encryption Conference (WCC) will be held in Las Vegas from October 29th to 31st.ICON (ICX):29 October 2019 Decentralization “As a result, the decentralization schedule of the ICON Network has been changed from September 24, 2019 to October 29, 2019.”Ark (ARK):and 10 others 29 October 2019 WCC 2019 Second annual Blockchain and Cryptocurrency Technology event, World Crypto Conference (WCC), October 29th — October 31, 2019.Insifa (ISF):29 October 2019 Prototype Alpha “We from Insifa have decided to be more open. Our Prototype will be developed in scrum. This means new releases every two weeks.”Enjin Coin (ENJ):29 October 2019 EnjinCraft Stress Test “Join us Oct. 29 at 7:00pm GMT for a stress test. Let’s try to break #EnjinCraft!”IOTA (MIOTA):29 October 2019 IOTSWC Barcelona IOT Solutions World Congress Digitalizing Industries conference in Barcelona from October 29–31.
Encrypted project calendar（October 30, 2019）
MIOTA/IOTA:IOTA (MIOTA) IOTA will host a community event on October 30th at the University of Southern California in Los Angeles on the topic “How to store data on IOTA Tangle.”TRON (TRX):30 October 2019 SFBW19 Afterparty “TRON Official SFBW19 Afterparty from 7–10:30 PM in San Francisco.”Horizen (ZEN):30 October 2019 Horizen Quarterly Update Join our first Quarterly Update on October the 30th at 5 PM UTC/ 1 PM EST. Deeper look into Engineering, BD, Marketing, and more.Aeternity (AE):30 October 2019 Hardfork “The third hardfork of the æternity Mainnet is scheduled for October 30, 2019.”Valor Token (VALOR):30 October 2019 Transaction Fees Resume “It’s September and the SMART VALOR Platform is still waiving transaction fees for all members, until October 30th!”Aragon (ANT):30 October 2019 Singapore Meetup “Aragon on DAOs and DeFi” from 6:30–8:30 PM.Kambria (KAT):30 October 2019 Outliers Hashed Awards Outliers Hashed awards from October 30–31.Ethereum Classic (ETC):30 October 2019 Cohort Demo Day “ETC Labs hosts it’s 2nd Cohort Demo Day. Learn about the companies and project being accelerated through the Ethereum Classic ecosystem.”
Encrypted project calendar（October 31, 2019）
Spendcoin (SPND):31 October 2019 (or earlier) Cross Ledger Mainnet “Cross Ledger Mainnet Release and SPND Token Swap,” during October 2019.Spendcoin (SPND):31 October 2019 (or earlier) Blkchn University Beta “Blockchain University Beta goes live,” during October 2019.Stellar (XLM):31 October 2019 (or earlier) Minor Release “We will have 6 Minor Releases in 2019; one each in February, March, May, June, August, and October.”Bitcoin SV (BSV):31 October 2019 (or earlier) BSV Conference Seoul No additional information.Seele (SEELE):31 October 2019 (or earlier) Public Network Mainne launch has been moved to Oct 31 .Howdoo (UDOO):31 October 2019 (or earlier) Howdoo Live on Huawei Howdoo begins its exciting partnership with Huawei with listing as a featured app starting in October.Chiliz (CHZ):31 October 2019 (or earlier) App Soft Launch Soft launch of Socios App by end of October.Dent (DENT):31 October 2019 (or earlier) Loyalty Program “Afterburner loyalty program launch for all 21,6 Million mobile #DENT users will be in October!”IceChain (ICHX):31 October 2019 (or earlier) Wallet Release IceChain releases wallet during October.Chiliz (CHZ):31 October 2019 (or earlier) New Partnerships New sports and new teams joining Socios (+more updates and events) will be announced in the upcoming weeks.Horizen (ZEN):31 October 2019 Weekly Insider Team updates at 3:30 PM UTC/ 11:30 AM EDT: Engineering, Node network, Product/UX, Helpdesk, Legal, BD, Marketing, CEO Closing thoughts, AMA.PCHAIN (PI):31 October 2019 (or earlier) New Website No additional information.IOST (IOST):31 October 2019 (or earlier) New Game on IOST “Eternal Fafnir, a new role-playing game developed by INFUN is coming to you in Oct.”Achain (ACT)：31 October 2019 Mainnet 2.0 Launch “… The main network is officially scheduled to launch on October 31.”Mithril (MITH)：31 October 2019 Burn “MITH burn will take place on 2019/10/31 2pm UTC+8. “Aergo (AERGO)：31 October 2019 (or earlier) Aergo Lite V1.0 Release AergoLite, which brings blockchain compatibility to billions of devices using SQLite, released during October 2019.TE-FOOD (TFD)：31 October 2019 (or earlier) Complementary Product “Development of a new, complementary product with a new partner, which we hope to be launched in September-October.”Edge (DADI)：31 October 2019 (or earlier) Full Open Source Code base for the network fully open-sourced in September or October.BlockStamp (BST)：31 October 2019 (or earlier) ASIC Miner Prototype In orderr to ensure BlockStamps continued decentralization, we will release a BST ASIC miner for testing.Perlin (PERL)：31 October 2019 (or earlier) SSA Partnership “Perlin has partnered with the Singapore Shipping Association to create the International E-Registry of Ships (IERS)”Skrumble Network (SKM)：31 October 2019 (or earlier) Exchange Release “3rd dApp: Exchange Release,” during October 2019.EDC Blockchain (EDC)：31 October 2019 (or earlier) Blockchain Marketplace “As you already know, our ECRO blockchain marketplace is ready for release, and will open to the global community in October!”BlockStamp (BST)：31 October 2019 (or earlier) ASIC Miner Prototype In orderr to ensure BlockStamps continued decentralization, we will release a BST ASIC miner for testing.XinFin Network (XDCE)：31 October 2019 Homebloc Webinar “XinFin — Homebloc Webinar 2019” from 9–10 PM.Akropolis (AKRO)：31 October 2019 (or earlier) Alpha Release “Delivers the initial mainnet implementation of protocol. All building blocks will be united to one product.”Hyperion (HYN)：31 October 2019 (or earlier) Economic Model The final version of the HYN Economic Model launches in October.
Encrypted project calendar（November 1, 2019）
INS/Insolar:The Insolar (INS) Insolar wallet and the redesigned Insolar Block Explorer will be operational on November 1, 2019.VeChain (VET)：”01 November 2019 BUIDLer Reunion Party BUIDLer Reunion Party in San Francisco from 8–11 PM.uPlexa (UPX)：01 November 2019 Steadfast Storm — PoS/PoW split (Utility nodes ie. master nodes) — Upcoming Anonymity Network much like TOR — Privacy-based DApps — Reduced network fees.Enjin Coin (ENJ)：01 November 2019 MFT Binding “ICYMI: On Enjin Coin’s 2nd anniversary (November 1), Enjin MFTs will be bound to hodlers’ blockchain addresses…”Auxilium (AUX)：01 November 2019 AUX Interest Distribution Monthly interest distribution by Auxilium Interest Distribution Platform for coinholders. Also supports charity.Havy (HAVY)：01 November 2019 Token Buyback “Havy tokens buyback, Only in 1 exchange between Idex, Mercatox & Hotbit. The exchange depends on the most lower sell wall.”Egretia (EGT):01 November 2019 Global DApp Contest SF 2019 Egretia Global DApp Contest in San Francisco.
Encrypted project calendar（November 2, 2019）
Kambria (KAT)：02 November 2019 VietAI Summit 2019 Kambria joins forces with VietAI for the annual VietAI Summit, with top experts from Google Brain, NVIDIA, Kambria, VietAI, and more!
Encrypted project calendar（November 4, 2019）
Stellar (XLM)：04 November 2019 Stellar Meridian Conf. Stellar Meridian conference from Nov 4–5 in Mexico City.Cappasity (CAPP)：04 November 2019 Lisbon Web Summit Lisbon Web Summit in Lisbon, Portugal from November 4–7.
Encrypted project calendar（November 5, 2019）
Nexus (NXS)：05 November 2019 Tritium Official Release “Remember, Remember the 5th of November, the day Tritium changed Distributed Ledger. Yes, this is an official release date.”NEM (XEM)：05 November 2019 Innovation Forum — Kyiv NEM Foundation Council Member Anton Bosenko will be speaking in the upcoming International Innovation Forum in Kyiv on November 5, 2019.TomoChain (TOMO):05 November 2019 TomoX Testnet “Mark your calendar as TomoX testnet will be live on Tuesday, Nov 5th!”aelf (ELF):05 November 2019 Bug Bounty Program Ends On Oct 24th, 2019 aelf’s biggest bug bounty will launch with a large reward pool. The event will run for almost 2 weeks.
Encrypted project calendar（November 6, 2019）
STEEM/Steem:The Steem (STEEM) SteemFest 4 conference will be held in Bangkok from November 6th to 10th.KIM/Kimcoin:Kimcoin (KIM) Bitfinex will be online at KIM on November 6, 2019 at 12:00 (UTC).
Encrypted project calendar（November 7, 2019）
XRP (XRP)： 07 November 2019 Swell 2019 Ripple hosts Swell from November 7th — 8th in Singapore.BTC/Bitcoin:Malta The A.I. and Blockchain summit will be held in Malta from November 7th to 8th.
Encrypted project calendar（November 8, 2019）
BTC/Bitcoin:The 2nd Global Digital Mining Summit will be held in Frankfurt, Germany from October 8th to 10th.IOTX/IoTeX:IoTex (IOTX) will participate in the CES Expo on November 08
Encrypted project calendar（November 9, 2019）
CENNZ/Centrality:Centrality (CENNZ) will meet in InsurTechNZ Connect — Insurance and Blockchain on October 9th in Auckland.HTMLCOIN (HTML):09 November 2019 (or earlier) Mandatory Wallet Update Mandatory Wallet Update: there will be a soft fork on our blockchain. This update adds header signature verification on block 997,655.
Encrypted project calendar（November 11, 2019）
PAX/Paxos Standard:Paxos Standard (PAX) 2019 Singapore Financial Technology Festival will be held from November 11th to 15th, and Paxos Standard will attend the conference.Crypto.com Coin (CRO):and 3 others 11 November 2019 Capital Warm-up Party Capital Warm-up Party in Singapore.GoldCoin (GLC):11 November 2019 Reverse Bitcoin Hardfork The GoldCoin (GLC) Team will be “Reverse Hard Forking” the Bitcoin (BTC) Blockchain…”
Encrypted project calendar（November 12, 2019）
BTC/Bitcoin:The CoinMarketCap Global Conference will be held at the Victoria Theatre in Singapore from November 12th to 13thBinance Coin (BNB)and 7 others: 12 November 2019 CMC Global Conference “The first-ever CoinMarketCap large-scale event: A one-of-a-kind blockchain / crypto experience like you’ve never experienced before.”
Encrypted project calendar（November 13, 2019）
Fetch.ai (FET):13 November 2019 Cambridge Meetup “Join us for a@Fetch_ai#Cambridge #meetup on 13 November@pantonarms1.”Binance Coin (BNB)and 5 others: 13 November 2019 Blockchain Expo N.A. “It will bring together key industries from across the globe for two days of top-level content and discussion across 5 co-located events…”OKB (OKB):13 November 2019 Dnipro, Ukraine- Talks Join us in Dnipro as we journey through Ukraine for our OKEx Cryptour on 11 Nov.Centrality (CENNZ):13 November 2019 AMA Meetup “Ask our CEO@aaronmcdnzanything in person! Join the AMA meetup on 13 November in Singapore.”OKB (OKB):13 November 2019 OKEx Cryptotour Dnipro “OKEx Cryptour Ukraine 2019 — Dnipro” in Dnipro from 6–9 PM (EET).
Encrypted project calendar（November 14, 2019）
BTC/Bitcoin:The 2019 BlockShow Asia Summit will be held at Marina Bay Sands, Singapore from November 14th to 15th.
Coinbase Binance Dance. Guide to Purchasing Altcoins.
Coinbase Binance Dance. Guide to purchasing altcoins.
The Coinbase Binance dance is a multi-step process used to purchase altcoins. (An altcoin is any cryptocurrency that is not Bitcoin). Reddit in particular is very fond of this method as it is commonly recommended to newcomers. How it works: You purchase Ethereum using Coinbase, send that Ethereum to your Binance account, then execute a trade selling said Ethereum for your cryptocurrency of choice. This is a process that seems very tedious and a bit complicated to crypto-newbies. No need to worry, I’m going to walk you through the process with photos included for visual aid. Using this method, you can purchase various types of cryptocurrencies including:
Etc… the list goes on. So long as it’s listed on Binance, you will be able to trade for the coin.
Both Coinbase and Binance are cryptocurrency exchanges you must sign up for in order to do this method. I recommend you create these accounts sooner rather than later as it can take a few days to get fully verified (especially for Coinbase). If you’re having issues, or questions, or would just like more information, I have full detailed tutorials regarding both Coinbase & Binance. See below:
Awesome! You’ve got the accounts created, now it’s time to do the dance. For the sake of this tutorial I’ll be purchasing the cryptocurrency XRP. Remember, this method works with any cryptocurrency so long as it’s listed on Binance.
Step 1: Make sure your token can be purchased with Ethereum. Go to Binance's home page and select ETH Markets use the search bar to look for your tokens ticker. See photo. If your token does not appear, check BTC Markets. If you see it there, you'll need to buy BTC and send it to Binance instead of ETH.
Step 2: Purchase Ethereum using Coinbase. See photo. For the lowest possible fee in Coinbase, link your bank account the downside is that it will take 5-7 business days for your funds to be available to send from your account. To have instant access to your funds, pay with a credit/debit card. The downside to this being that fees will be higher.
Step 3: Send your Ethereum from Coinbase to your Binance Ethereum wallet address. See photo.
Optional: Depending on your location, you may or may not have to pay a Coinbase transfer fee. If you see that you do and would rather not, you can mitigate this fee by sending your crypto to Coinbase Pro or GDAX then to Binance. If this otherwise does not concern you, please continue below. To find your Binance Ethereum wallet address, go to: Funds > Deposits > ETH - Ethereum and click Copy Address. See photo. Once you click confirm, you’ll be asked to complete 2-step verification provided by your phone. See photo. You can view the transaction in Coinbase. After a few minutes you’ll see confirmations coming through. Refresh the Binance deposits page as well and you’ll see confirmations. See photo. You’ll get two emails during this process. One from Coinbase, another from Binance. Cryptocurrency transactions are not instantaneous on the Ethereum blockchain. In this case it took ~6 minutes for this transfer to complete, however this may vary depending on how congested the network is. During high periods of high traffic on the Ethereum blockchain, you can expect it to take longer than 6 minutes so don’t worry if it’s taking longer. As long as you’re seeing confirmation, you should be good. See photo. Once you receive the Deposit Success Alerts email from Binance, go to Funds > Balances in Binance. You’ll see that you’re Ethereum balance has increased. See photo.
Step 4: In Binance, go to Exchange > Basic. You’ll be met with a screen that looks like this. See photo. I know this screen looks a bit confusing. It’s really not. First thing we need to do is make sure Ethereum (ETH) is set as our baseline currency for trade.
Step 5: Set Ethereum as baseline currency. See photo. You can see in that photo what is shown is all the possible cryptocurrencies pairings available with Ethereum.
Step 6: Use the search bar to search for the token’s ticker you’d like to purchase. See photo. In the case for Ripple, the ticker is XRP. If you don’t know your coins ticker, Google it.
Step 7: Set your prefered parameters and click Buy. See photo. The 25% 50% 75% and 100% buttons refer to how much of your set baseline funds you would like to dedicate towards your purchase. In my case, by clicking 100% I am saying I’d like to use 100% of my Ethereum funds to purchase XRP. Clicking 75% would be 75% of my ETH funds etc… The Amount and Totals sections are automatically filled out based off your % choice.
Step 8: Wait for your order to be filled! Depending on the market, your order may be filled right away or not. If you’re getting impatient you can always cancel the order and try again at a slightly higher price. If you’re going to edit the price per coin section, just be sure you don’t accidentally end up paying a ridiculously high amount. If you click into the price field a blurb will appear showing you how much you’re paying per coin. See photo.
Congratulations! You’ve just done the Coinbase Binanace dance. Wasn’t so hard was it? Once your order has been completely filled, the Funds > Balances page should reflect your purchase. See photo.
Lower Fees using BNB
It helps to purchase a little bit of Binance native token BNB to help save on fees. Make sure you enable it in your account settings! See photo. You can purchase BNB using the same method described above.
Selling your crypto.
Selling your crypto is a very similar process. In my instance with my XRP, if I wanted to sell that back to USD. I’d need to sell the XRP for Ethereum, then sell that Ethereum for USD on Coinbase. The process would look something like this:
Sell my XRP for Ethereum in Binance
Withdrawal the Ethereum from Binance to Coinbase
Sell the Ethereum for USD through Coinbase.
If you consider yourself a hodler, and do not plan to actively be making trades, I highly recommend you send your crypto to a hardware wallet such as the Ledger Nano S. Hardware wallets are a form of cold storage and are the safest way to store cryptocurrency. It is highly recommended you DO NOT store crypto on any exchange as exchanges themselves are prone to hacks (see Mt. Gox hack). I also highly recommend you secure your Binance and Coinbase accounts with 2-factor authentication (2FA) and google authenticator to reduce the risk of a hack.
In the end, be glad that you learned how to do this process! Figuring out how to actually purchase cryptocurrency is one of the most challenging things for newbies, and now that you have a Coinbase and Binance account setup, you have the ability to purchase 95% of coins. If you have any questions feel free to comment down below or send me a message. I’d be happy to help!
Frequently Asked Questions
Why not use Bitcoin to send to Binance. Why use Ethereum?
Transactions on the Ethereum blockchain are faster than Bitcoin's. Ethereum has a block time of ~15s, Bitcoin has a block time of ~10min. This means on average, Ethereum transactions will be faster than Bitcoins. Fees are also lower on the Ethereum blockchain so I consider Ethereum to be a much better bridge currency in the use of purchasing altcoins.
You could also use Litecoin if you wanted to. Litecoin has a smaller block time (2m 34s) compared to Bitcoin and the fees are much lower. To see block time data on blockchains, BitInfoCharts is a very good resource.
Hello! My name is Inna Halahuz, I am a sales manager at Platinum, the largest listing service provider for the STO and ICO projects. We know all about the best and most useful STO and ICO marketing services. By the way, we developed the best blockchain platform: [Platinum.fund] (https://platinum.fund/sto/) We also created the UBAI, the unique educational project with the best and most useful online courses. We not only share our knowledge but also help the best graduates to find a job! After finishing our courses you will know all about crypto securities, ICO and STO advertizing and best blockchain platforms. What a Blockchain Wallet is? What is its purpose? Find the answer after reading this article. Public/Private Key The public key is the digital code you give to someone that wants to transfer ownership of a unit of cryptocurrency to you; and a private key is what you need to be able to unlock your own wallet to transfer a unit of a cryptocurrency to someone else. The encoding of information within a wallet is done by the private and public keys. That is the main component of the encryption that maintains the security of the wallet. Both keys function in simultaneous encryption systems called symmetric and asymmetric encryption. The former, alternatively known as private key encryption, makes use of the same key for encryption and decryption. The latter, asymmetric encryption, utilizes two keys, the public and private key, wherein a message-sender encrypts the message with the public key, and the recipient decodes it with their private key. The public key uses asymmetric algorithms that convert messages into an unreadable format. A person who possesses a public key can encrypt the message for a specific receiver. Accessing wallets Methods of wallet access vary depending on the type of wallet being used. Various types of currency wallets on an exchange will normally be accessed via the exchange’s entrance portal, normally involving a combination of a username/password and optionally, 2FA (Two factor authentication, which we explain in more detail later). Whereas hardware wallets need to be connected to an internet enabled device, and then have a pin code entered manually by the user in possession of the hardware wallet in order for access to be gained. Phone wallets are accessed through the device on which the wallet application has been downloaded. Ordinarily, a passcode and/or security pattern must be entered before entry is granted, in addition to 2FA for withdrawals. Satoshi Nakamoto built the Satoshi client which evolved into Bitcoin in 2009. This software allowed users to create wallets and send money to other addresses. However, it proved to be a nightmarish user experience, with many transactions being sent to incorrect addresses and private keys being lost. The MtGox (Magic the Gathering Online exchange, named after the original intended use of the exchange) incident, which will be covered in greater detail later, serves as a reminder of the dangers present in the cryptosphere regarding security, and the need to constantly upgrade your defenses against all potential hacks. The resulting loss of 850k BTC is a still unresolved problem, weighing heavily on the victims and the markets at large. This caused a huge push for a constantly evolving and improving focus on security. Exchanges that developed later, and are thus considered more legitimate and secure, such as Gemini and Coinbase, put a much greater emphasis on vigilance as a direct result of the MtGox hacking incident. We also saw the evolution of wallet security into the physical realm with the creation of hardware wallets, most notable among them the Ledger and Trezor wallets. Types of Wallets & Storage Methods The simplest way to sift through the dozens of cryptocurrency storage methods available today, is to divide them up into digital and non-digital, software and hardware wallets. There are also less commonly used methods of storage of private keys, like paper wallets and brain wallets. We will examine them all at least briefly, because in the course of your interaction with cryptocurrencies and Blockchain technology, it is essential to master all the different types of hardware and software wallets. Another distinction must be made between hot wallets and cold wallets. A hot wallet is one that is connected to the internet, and a cold wallet is one that is not. Fun fact: The level below cold storage, deep cold storage has just recently been implemented by the Regal RA DMCC, a subsidiary of an internationally renowned gold trading company licensed in the Middle East. After having been granted a crypto trading license, Regal RA launched their “deep cold” storage solution for traders and investors, which offers the ability to store crypto assets in vaults deep below the Almas Tower in Dubai. This storage method is so secure that at no point is the vault connected to a network or the internet; meaning the owners of the assets can be sure that the private keys are known only to the rightful owners. Lets take a quick look at specific features and functionality of varieties of crypto wallets. Software wallets: wallet applications installed on a laptop, desktop, phone or tablet. Web Wallets: A hot wallet by definition. Web Wallets are accessible through the web browser on your phone or computer. The most important feature to recognize about any kind of web wallet, is that the private keys are held and managed by a trusted third party. MyEtherWallet is the most commonly used non-exchange web wallet, but it can only be used to store Ethereum and ERC-20 tokens. Though the avenue of access to MEW is through the web, it is not strictly speaking a web wallet, though this label will suffice for the time being. The MEW site gives you the ability to create a new wallet so you can store your ETH yourself. All the data is created and stored on your CPU rather than their servers. This makes MEW a hybrid kind of web wallet and desktop wallet. Exchange Wallets: A form of Web Wallet contained within an exchange. An exchange will hold a wallet for each individual variety of cryptocurrency you hold on that exchange. Desktop Wallets: A software program downloaded onto your computer or tablet hard drive that usually holds only one kind of cryptocurrency. The Nano Wallet (Formerly Raiwallet) and Neon wallet for storage of NEO and NEP-5 tokens are notable examples of desktop wallets Phone Wallets: These are apps downloaded onto a mobile phone that function in the same manner as a desktop wallet, but actually can hold many different kinds of cryptocurrency. The Eidoo Wallet for storing Ethereum and its associated tokens and Blockchain Wallet which currently is configured to hold BTC, ETH and Bitcoin Cash, are some of the most widely used examples. Hardware wallets — LedgeTrezoAlternatives Hardware wallets are basically physical pathways and keys to the unique location of your crypto assets on the Blockchain. These are thought to be more secure than any variety of web wallet because the private key is stored within your own hard wallet, an actual physical device. This forcibly removes the risk your online wallet, or your exchange counter party, might be hacked in the same manner as MtGox. In hardware wallet transactions, the wallet’s API creates the transaction when a user requests a payment. An API is a set of functions that facilitates the creation of applications that interact and access features or data of an operating system. The hardware then signs the transaction, and produces a public key, which is given to the network. This means the signing keys never leave the hardware wallet. The user must both enter a personal identification number and physically press buttons on the hardware wallet in order to gain access to their Blockchain wallet address through this method, and do the same to initiate transfers. Paper Wallets Possibly the safest form of cryptocurrency storage in terms of avoiding hacking, Paper Wallets are an offline form of crypto storage that is free to set up, and probably the most secure way for users, from beginners to experts, to hold on to their crypto assets. To say it simply, paper wallets are an offline cold storage method of storing cryptocurrency. This includes actually printing out your public and private keys on a piece of paper, which you then store and save in a secure place. The keys are printed in the form of QR codes which you can scan in the future for all your transactions. The reason why it is so safe is that it gives complete control to you, the user. You do not need to worry about the security or condition of a piece of hardware, nor do you have to worry about hackers on the net, or any other piece of malware. You just need to take care of one piece of paper! Real World Historical Examples of Different Wallet Types Web Wallet: Blockchain.info Brief mechanism & Security Blockchain.info is both a cryptocurrency wallet, supporting Bitcoin, Ethereum and Bitcoin cash, and also a block explorer service. The wallet service provided by blockchain.info has both a Web Wallet, and mobile phone application wallet, both of which involve signing up with an email address, and both have downloadable private keys. Two Factor Authentication is enabled for transfers from the web and mobile wallets, as well as email confirmation (as with most withdrawals from exchanges). Phone Wallet: Eidoo The Eidoo wallet is a multi-currency mobile phone app wallet for storage of Ethereum and ERC-20 tokens. The security level is the standard phone wallet level of email registration, confirmation, password login, and 2 factor authentication used in all transfers out. You may find small volumes of different varieties of cryptocurrencies randomly turning up in your Eidoo wallet address. Certain projects have deals with individual wallets to allow for “airdrops” to take place of a particular token into the wallet, without the consent of the wallet holder. There is no need to be alarmed, and the security of the wallet is not in any way compromised by these airdrops. Neon Wallet The NEON wallet sets the standard for web wallets in terms of security and user-friendly functionality. This wallet is only designed for storing NEO, Gas, and NEP-5 tokens (Ontology, Deep Brain Chain, RPX etc.). As with all single-currency wallets, be forewarned, if you send the wrong cryptocurrency type to a wallet for which it is not designed, you will probably lose your tokens or coins. MyEtherWallet My Ether Wallet, often referred to as MEW, is the most widely used and highly regarded wallet for Ethereum and its related ERC-20 tokens. You can access your MEW account with a hardware wallet, or a different program. Or you can also get access by typing or copying in your private key. However, you should understand this method is the least safe way possible,and therefore is the most likely to result in a hack. Hardware: TrezoLedger Brief History Mechanism and Security A hardware wallet is a physical key to your on-chain wallet location, with the private keys contained within a secure sector of the device. Your private key never leaves your hardware wallet. This is one of the safest possible methods of access to your crypto assets. Many people feel like the hardware wallet strikes the right balance between security, peace of mind, and convenience. Paper Wallet Paper wallets can be generated at various websites, such as https://bitcoinpaperwallet.com/ and https://walletgenerator.net/. They enable wallet holders to store their private keys totally offline, in as secure a manner as is possible. Real World Example — Poor Practices MtGox Hack history effects and security considerations MtGox was the largest cryptocurrency exchange in the world before it was hacked in 2014. They were handling over 70% of BTC transactions before they were forced to liquidate their business. The biggest theft of cryptocurrency in history began when the private keys for the hot wallets were stolen in 2011 from a wallet.dat file, possibly by hacking, possibly by a rogue employee. Over the course of the next 3 years the hot wallets were emptied of approximately 650000 BTC. The hacker only needed wallet.dat file to access and make transfers from the hot wallet, as wallet encryption was only in operation from the time of the Bitcoin 0.4.0 release on Sept 23rd 2011. Even as the wallets were being emptied, the employees at Mt Gox were apparently oblivious to what was taking place. It seems that Mt Gox workers were interpreting these withdrawals as large transfers being made to more secure wallets. The former CEO of the exchange, Mark Karpeles, is currently on trial for embezzlement and faces up to 5 years in prison if found guilty. The Mt Gox hack precipitated the acceleration of security improvements on other exchanges, for wallets, and the architecture of bitcoin itself. As a rule of thumb, no small-to-medium scale crypto holders should use exchange wallets as a long-term storage solution. Investors and experienced traders may do this to take advantage of market fluctuations, but exchange wallets are perhaps the most prone to hacking, and storing assets on exchanges for an extended time is one of the riskiest ways to hold your assets. In a case strikingly similar to the MtGox of 2011–2014, the operators of the BitGrail exchange “discovered” that approximately 17 million XRB ($195 million worth in early 2018) were missing. The operators of the exchange were inexplicably still accepting deposits, long after they knew about the hack. Then they proceeded to block withdrawals from non-EU users. And then they even requested a hard fork of the code to restore the funds. This would have meant the entire XRB Blockchain would have had to accept all transactions from their first “invalid” transaction that were invalid, and rollback the ledger. The BitGrailexchange attempted to open operations in May 2018 but was immediately forced to close by order of the Italian courts. BitGrail did not institute mandatory KYC (Know your customer) procedures for their clients until after the theft had been reported, and allegedly months after the hack was visible. They also did not have 2 factor authentication mandatory for withdrawals. All big, and very costly mistakes. Case Study: Good Practice Binance, the Attempted Hack During the 2017 bull run, China-based exchange Binance quickly rose to the status of biggest altcoin exchange in the world, boasting daily volumes that surged to over $4 billion per day in late December. Unfortunately, this success attracted the attention of some crafty hackers. These hackers purchased domain names that were confusingly similar to “binance.com”. And then they created sufficiently convincing replica websites so they could phish traders for their login information. After obtaining this vital info, the scammers created API keys to place large buy orders for VIAcoin, an obscure, low volume digital currency. Those large buy orders spiked VIA’s price. Within minutes they traded the artificially high-priced VIA for BTC. Then they immediately made withdrawal requests from the hacked BTC wallets to wallets outside of the exchange. Almost a perfect fait accompli! But, Binance’s “automating risk management system” kicked in, as it should, and all withdrawals were temporarily suspended, resulting in a foiled hacking attempt. Software Wallets Web/Desktop/Phone/Exchange Advantages and Limitations As we said before, it is inadvisable to store crypto assets in exchange wallets, and, to a lesser extent, Web Wallets. The specific reason we say that is because you need to deliver your private keys into the hands of another party, and rely on that website or exchange to keep your private key, and thus your assets, safe. The advantages of the less-secure exchange or web wallets, are the speed at which you can transfer assets into another currency, or into another exchange for sale or for arbitrage purposes. Despite the convenience factor, all software wallets will at some point have been connected to the internet or a network. So, you can never be 100% sure that your system has not been infected with malware, or some kind of keylogging software, that will allow a third party to record your passwords or private keys. How well the type of storage method limits your contact with such hazards is a good way to rate the security of said variety of wallet. Of all the software wallets, desktop and mobile wallets are the most secure because you download and store your own private key, preferably on a different system. By taking the responsibility of private key storage you can be sure that only one person has possession of it, and that is you! Thereby greatly increasing the security of your crypto assets. By having their assets in a desktop wallet, traders can guard their private key and enjoy the associated heightened security levels, as well keep their assets just one swift transfer away from an exchange. Hardware Wallets Advantages and Limitations We briefly touched on the features and operation of the two most popular hardware wallets currently on the market, the Ledger and Trezor wallets. Now it will be helpful to take a closer look into the pros and cons of the hardware wallet storage method. With hardware wallets, the private keys are stored within a protected area of the microcontroller, and they are prevented from being exported out of the device in plain text. They are fortified with state-of-the-art cryptography that makes them immune to computer viruses and malware. And much of the time, the software is open source, which allows user validation of the entire performance of the device. The advantages of a hardware wallet over the perhaps more secure paper wallet method of crypto storage is the interactive user experience, and also the fact that the private key must at some stage be downloaded in order to use the paper wallet. The main disadvantage of a hardware wallet is the time-consuming extra steps needed to transfer funds out of this mode of storage to an exchange, which could conceivably result in some traders missing out on profits. But with security being the main concern of the vast majority of holders, investors and traders too, this slight drawback is largely inconsequential in most situations. Paper Wallets Advantages and Limitations Paper wallets are thought by some to be the safest way to store your crypto assets, or more specifically, the best method of guarding the pathways to your assets on the Blockchain. By printing out your private key information, the route to your assets on the Blockchain is stored 100% offline (apart from the act of printing the private key out, the entire process is totally offline). This means that you will not run the risk of being infected with malware or become the victim of keylogging scams. The main drawback of using paper wallets is that you are in effect putting all your eggs in one basket, and if the physical document is destroyed, you will lose access to your crypto assets forever. Key things to keep in mind about your Wallet Security: Recovery Phrases/Private Key Storage/2FA/Email Security Recovery phrases are used to recover the on-chain location for your wallet with your assets for hardware wallets like ledgers and Trezors that have been lost. When you purchase a new ledger for example, you just have to set it up again by entering the recovery phrase into the display and the lost wallets will appear with your assets intact. Private key storage is of paramount importance to maintain the safety of your on-chain assets! This should be done in paper wallet form, or stored offline on a different computer, or USB device, from the one you would typically use to connect to the 2 Factor Authentication (2FA) sometimes known as “two step authentication”. This feature offers an extra security layer when withdrawing funds from cryptocurrency wallets. A specialized app, most commonly Google Authenticator, is synced up to the exchange to provide a constantly changing code. This code must be entered within a short time window to initiate transfers, or to log into an exchange, if it has also been enabled for that purpose. You must always consider the level of fees, or the amount of Gas, that will be needed to carry out the transaction. In times of high network activity Gas prices can be quite high. In fact, in December 2017 network fees became so high that some Bitcoin transactions became absolutely unfeasible. But that was basically due to the anomalous network congestion caused by frantic trading of Bitcoin as it was skyrocketing in value. When copying wallet addresses, double check and triple check that they are correct. If you make a mistake and enter an incorrect address, it is most likely your funds will be irretrievably lost; you will never see those particular assets again. Also check that you haven’t input the address of another one of your wallets that is designed to hold a different variety of cryptocurrency. You would similarly run the very great risk of losing your funds forever. Or, at the very least, if you have sent the wrong crypto to a large exchange wallet, for example on Coinbase, maybe you could eventually get those funds back, but it would still entail a long and unenjoyable wait. How to Monitor Funds There are two ways to monitor you funds and your wallets. The first is by searching for individual wallet addresses on websites specifically designed to let you view all the transactions on a particular Blockchain. The other is to store a copy of your wallet contents on an application that tracks the prices of all cryptocurrencies. Blockchain.info is the block explorer for Bitcoin, and it allows you to track all wallet movements so you can view your holdings and all the historical transactions within the wallet. The Ethereum blockchain’s block explorer is called Ether scanner, and it functions in the same way. There is a rival to Ether scanner produced by the Jibrel Network, called JSearch which will be released soon. JSearch will aim to offer a more streamlined and faster search method for Ethereum blockchain transactions. There are many different kinds of block explorer for each individual crypto currency, including nanoexplorer.io for Nano (formerly Rai Blocks) and Neotracker for NEO. If you simply want to view the value of your portfolio, the Delta and Blockfolio apps allow you to easily do that. But they are not actually linked to your specific wallet address, they just show price movements and total value of the coins you want to monitor. That’s not all! You can learn how to transfer and monitor the funds in and out of your wallet by clicking on the link. To be continued! UBAI.co Contact me via Facebook, Instagram and LinkedIn to learn more about the best online education: LinkedInFacebookInstagram
Is China Cooking Up the Biggest Cryptocurrency Exchange Bubble or Rewriting the Industry?
https://preview.redd.it/04m8ii3z4cd11.png?width=736&format=png&auto=webp&s=3e0f91a9fe9a8e1a18544b5fc0082eb838826b72 When I asked our production assistant "are you following FCoin," she gave me a perplexed look and replied, "what? Filecoin?" Apparently, FCoin was not on her radar. I don't fault her. Nowadays, with over hundreds of crypto exchanges around, an exchange that is barely a month old doesn't sound like something that warrants paying attention to. When I typed "FCoin" into the Google search bar, the search engine autocorrected to "pcoin." However, this exchange in its infancy has already become the focus of the Chinese crypto circle and is either writing its own legend or will eventually reveal itself as one of the biggest scams in crypto history. I heard about FCoin for the first time on Jun 12th. Members of the Chinese crypto circle had started talking about this new entrant to the game. The new kid on the block was not only already billing itself as the biggest exchange by volume, having accumulated over 28 billion yuan within a 24 hour period on the 15th day after launch, but had even gone as far as to publicly announce that its trading volume surpassed the sum of the trading volumes of the second to the seventh biggest exchanges, including major players Binance and Huobi. The first reaction among the crypto crowd was to question the authenticity of their data. Even as I pen this article, their trading data can still not be found on popular crypto data sources such as coinmarketcap.com or Block Hero. Fake trades, that is, the trading of cryptocurrencies between two accounts owned by the same exchange, is an open secret across the exchange industry, especially in China. Everyone is doing it but no one owns up to it. Some industry insiders have told me that, in their opinion, at least 85% of the trading volume at the top exchanges is “fake,” a shocking number if there is any validity to the “allegation” in an industry that is trying to build a trustworthy reputation for itself. I was unable to find a way to independently verify the number, however when I asked Bobby Lee, the founder of BTC China, about FCoin’s trading volume, his first reaction was, "I wouldn't trust any volume numbers from cypto-exchanges.” FCoin’s story has since evolved beyond the issue of trading volume manipulation. Soon afterwards, Huobi announced that they plan to ally with 100 exchanges and adopt the same model as FCoin. Then CZ from Binance (the world’s second largest crypto-exchange if FCoin’s numbers are to be believed) said sarcastically on Weibo, the closest thing in China to Twitter, that they are ready to work with even 1000 exchanges in order to emulate the model. Apparently, it isn’t just a story of someone cooking the trading number as the sector’s biggest players already found it a new threat. https://preview.redd.it/sbqfny0b5cd11.png?width=740&format=png&auto=webp&s=ee6fa8ae5be681f917f144cf1f83bf337e2d2932 The cryptocurrency exchange industry is evolving at a super-fast pace. Mt. Gox, remember them? They were the first-generation exchange and used to be the sole player dominating the bitcoin trading business. Their reign ended when their entire network sank after a major hack. In China, BTC China was the first to initiate the cryptocurrency exchange business, however, were surpassed by OKCoin and Huobi within a couple of years. Last year, Binance moved to the head of the class in months. On December 16, 2017, they sent out a tweet saying: “5 months to reach Number One in the WORLD.” Then Binance saw their 1st quarter earnings in 2018 surpass those of 148-year-old Deutsche Bank. https://preview.redd.it/tj8qf9vc5cd11.png?width=740&format=png&auto=webp&s=7d2051c7c1c033876d6b9a9f3d4100daf97a984b However things have since been changing even faster, with the time between events, no longer counted in months but rather in days. It took FCoin roughly one tenth of the time that it took Binance to move into the number one position, assuming their data is correct. Zhang Jian, FCoin’s founder and former CTO of Huobi, said in a WeChat group that even members of their own team were surprised that things were happening that quickly. The team had to work day and night to constantly upgrade the system, as the trading volumes the system had to handle kept growing exponentially. Now let’s talk about FCoin’s model. What kind of magic is attracting that volume of trades? FCoin’s model is called “trans-fee mining.” They didn’t really invent it. Besides FCoin, several other cryptocurrency exchanges had made their appearance around the same time trying out that model, for example Dragonex, yet the model deployed in each case varies in the details. In FCoin’s case, users can trade cryptocurrencies and facilitate the trades by paying transaction fee like any other exchanges. However the users will receive the full rebate of the transaction fee in the form of FT, FCoin’s token. Every day, FCoin will reward dividends to all the FT token holder. The dividend is based on the transaction fee income accumulated in the last 24 hours. At the beginning FCoin took 80% of all the transaction fees as dividends to the user. Now under certain condition, the entire 100% is returned to the user. https://preview.redd.it/mk5iqqda7cd11.png?width=740&format=png&auto=webp&s=24dc5a43b9f4eb5c112c50df266f7311aeb5491a The user not only earns FT tokens, but also gains dividends simply by holding onto the FT without the heavy investment in machines and electricity that is needed to mine bitcoin. If FT’s price can be held at a certain level and the transaction fee revenue stream is stable, the user can make money if they hold onto their FT long enough. It sounds lucrative to many people. Users rushed in and kept on selling and buying, not for the purpose of changing positions, but purely to create the trade that allows them to receive or mine FT coins. Zhang said now their biggest challenge is to calculate all the dividends on a daily basis as it has now become so massive. According to their official website, about 170 BTC is distributed to users as a dividend today and the number was over 1500 BTC the day before. I guess the trading volume is pretty volatile. https://preview.redd.it/3rfdy93c7cd11.png?width=740&format=png&auto=webp&s=1584dd4d259474465dd681c2e12be20b48cfaa90 During the interview with the press, Zhang Jian explained that his idea behind this new model follows Satoshi Nakanomo’s original design for bitcoin. He said his fundamental theory is to build a community to support the trading eco-system rather than simply seeking to maximize profits like other centralized exchanges. Besides receiving a dividend, the FT holder can also participate in the system’s management. Zhang gained a lot of support in the crypto circle especially from the people who made money on Fcoin. However, many questions remain. https://preview.redd.it/t3kpjfbe7cd11.png?width=740&format=png&auto=webp&s=b5aa7ce6e598954b80c6ae4bd429b4aa9cfa477a Firstly, the question of the fake trades: Zhang Jian says that the FCoin system can prevent fake trades as they simply wouldn’t have the money to reward FT coin holders with the dividends. Although not everyone buys that answer, since some people think FCoin can still fiddle with the volume number by trading between its own accounts and give their own accounts FC coins, generating a lot of dividends, most of which is just returned to FCoin after the fact. Given that FT is not on blockchain now makes it hard to track how they are distributed. Zhang said FT will be put on the chain eventually. Still it is possible that FT is a “fake it until you make it” case. However, FCoin may not have a strong motivation to overstate the data for sustainability reasons, something which I will explain later. https://preview.redd.it/30h37k2g7cd11.png?width=627&format=png&auto=webp&s=cde3c8162e9306c15485cd27bdaebbaf38781ff5 Secondly, CZ from Binance said in a statement that he believes FCoin is simply another kind of ICO. The users pay FCoin the transaction fee using BTC or ETH and receive FT coins in return. At the end of the day, it is not really any different than using BTC or ETH to purchase FT. And, when I hear of valuations of FCoin at 50 billion dollar, it does seem off the wall, especially considering the firm’s short history. Upon hearing that Binance doubted the evaluation, Zhang laughed it off and retorted in return that Binance was an ICO project as well at an interview. https://preview.redd.it/j8qi26uh7cd11.png?width=740&format=png&auto=webp&s=f2cd1a6179877ed56b3a2885d4497df9b6ce1aec The third issue is sustainability. One has to question whether the transaction fee income is enough to support the run rate, and as to whether FCoin’s model, as it is currently structured, can support itself for much longer. There is a limited supply of FT coins, 10 billion in total. According to FCoin’s announcement, 51% of them will be rewarded to users through the “trans-fee mining.” At the time of this writing, FCoin’s official site indicated that more than 28 million FT had been mined the previous day. Let’s assume on average that 25 million FT are mined per day. That means, it will take only 204 days to mine all the FT needed to award users through the “trans-fee mining” program. What will happen after that? The FT holder can still receive the dividends but will no longer receive any FT coin for the transaction fee they paid. The return, in that case, will be significantly lower. This could become a cycle, with another exchange suddenly showing up with a more lucrative mining program, instigating a massive migration to the new player. And when that player runs out of tricks, the next one could come along. That is already happening: on Jun 25th, Bit-z launched its platform token BZ and started a similar “trans-fee mining” program. They claimed that within the first 12 hours, the transaction volume had hit 27 billion yuan, if the data is to believed.
A Brief History of People Losing their Cryptocurrency
The history of cryptocurrency is fraught with people losing their coins, whether through carelessness, greed, bad luck, or some combination of the above. Some ignored the first rule of crypto: “never leave your crypto on an exchange.” When their exchange failed, their crypto went with it. Others were negligent with their storage solutions, misplacing old hard drives, using software wallets on malware-ridden PCs, forgetting the passwords to hardware wallets. Some were greedy and lost their coins to a Nigerian Crypto Prince or a Ponzi scheme. And some were just plain unlucky. These unfortunate tales remind us to be careful with our crypto, and underscore the need for new solutions to storing crypto safely. Buying cryptocurrency used to be a risky prospect. There weren’t many exchanges, they often required you to deposit fiat via a third party, you certainly couldn’t use your credit card, and there was hardly any regulation. It was considered unwise to leave your cryptocurrency on the exchange after you bought it. Many people today feel safe buying some crypto on Coinbase or Binance, without transferring it to a personal wallet, but in those wild years you absolutely wanted control of your private keys. If the exchange had the keys, you were trusting your crypto to the reputation of a small company, located who-knows-where, that made its revenue by exchanging speculative, unregulated digital currencies between anonymous traders. One such company was Mt. Gox. Mt Gox was a Tokyo based Bitcoin exchange. Led by CEO Mark Karpelès, who was also majority shareholder and lead developer, Mt Gox expanded quickly. Founded in 2010 and bought by Karpelès in 2011, Mt. Gox quickly dominated the Bitcoin market, responsible for 70% of BTC volume in 2013, with 1.1 million active accounts. But despite the outwards success, there were some signs that all was not well internally. Karpelès refused to allow any updates to the exchange software, without approving changes to the source code, meaning needed updates could languish for weeks. In June, 2011 the exchange lost $8.75 million in Bitcoin to a cyberattack, and the site went offline. According to friends of Karpelès who flew in to help get Mt. Gox back online, Karpelès seemed surprisingly relaxed about the affair, even taking the weekend off. Mt. Gox was brought back online, but soon after US Federal agents seized $5 million from the company’s US account, and former business partner CoinLab sued for $75 million. Karpelès seemed more focused on creating a Bitcoin Cafe in the Mt. Gox building than on addressing these many issues. After an internal memo was leaked disclosing the disappearance of 850,000 BTC (worth about $460 million at the time), Mt. Gox collapsed into bankruptcy. It is still in bankruptcy proceedings today. https://preview.redd.it/ycurk9dlnj611.jpg?width=800&format=pjpg&auto=webp&s=7b8199c3dc1e58536f9813918b46cca43a4edec4 One might be tempted to dismiss the failure of Mt. Gox as a lesson learned by the crypto community, a mistake that wouldn’t be repeated. Sadly, exchanges continue to lose their customers’ crypto with startling regularity. A less spectacular but much more recent loss was $150 million of Nano stolen from exchange Bitgrail in February. Bitgrail’s management blamed the Nano blockchain software for the theft, but has refused to release any evidence. Nano, for its part, has vigorously defended itself against Bitgrail’s claims, showing that the missing Nano was stored in a hot wallet (one that is accessible online) instead of a cold wallet, which would have been more protected. Whoever’s to blame, if you had Nano on Bitgrail, it’s gone. Similarly, if you had any crypto on Korean exchange Youbit, you’re down 17%, which was stolen in a hack in December. Or if you used Bitconnect, you’ll find your Bitconnect tokens became nearly worthless after the company shuttered in January. https://preview.redd.it/c9yvtynqnj611.png?width=800&format=png&auto=webp&s=907e45703cc7e3e9e823f1cce1700a68c54075f6 “Dozens of exchanges have failed since the creation of Bitcoin, taking many small fortunes with them. This should serve as a reminder to never leave your cryptocurrency on an exchange; however there are other ways to lose your coins,” according to Saifu co-founder Evgeny Vigovsky. In October of 2017, a new cryptocurrency was created called Bitcoin Gold. Bitcoin Gold is a fork of the Bitcoin blockchain. This meant that anyone who owned Bitcoin was now entitled to an equivalent amount of Bitcoin Gold. Many were eager to claim their share, and some found a Bitcoin Gold online wallet called mybtgwallet.com. This helpful site offered to assist users claim their Bitcoin Gold, instructing them to enter their wallet’s seed or private key. The seed is a series of words, usually 24, that can be used to recreate a wallet if it’s lost or corrupted. Giving someone your wallet seed or private keys is akin to giving them the keys to your safe deposit box, and the victims of mybtgwallet found their wallets were quickly emptied of whatever cryptocurrencies they held. More than $3 million in Bitcoin was stolen. https://preview.redd.it/e5btpnfunj611.png?width=800&format=png&auto=webp&s=e2fa9a011de23e4f223d815567b061e3d2bc7625 MyEtherWallet is a popular online wallet for Ethereum and other tokens built on the Ethereum blockchain. The wallet is free to use, and as far as online wallets go, it’s secure, requiring users to take steps to protect themselves. In December, the MyEtherWallet iOS app hit the #3 spot on the App Store in the finance category. Unfortunately for the thousands of users who bought the app for $4.99, this app was just another scam. MyEtherWallet doesn’t have an app (and Apple doesn’t allow wallet apps on the App Store). Suspicious users alerted the MyEtherWallet team, who alerted Apple. Two days later, Apple responded and removed the app from the app store. https://preview.redd.it/jcokfj6ynj611.png?width=519&format=png&auto=webp&s=903ea36e5e749a1854ae8fcacabc19032276ed04 Less colorful but more insidious, there are a plethora of malware that targets cryptocurrency wallets. These programs run quietly in the background, searching for wallet software on your computer and uploading your credentials. A particularly nasty bit of malware was the Pony botnet, discovered in September 2014. The Pony botnet used a trojan virus to compromise about 700,000 accounts, including email accounts, website login credentials, and other sensitive information. Bitcoin totalling 335 were stolen from 85 different wallets; those Bitcoin are worth about $2.7 million today. Some classic scams have been updated for cryptocurrencies, including a variation on the Nigerian prince con, harnessing social media to attract victims. In the classic Nigerian prince scam, the victim would receive an email from a Nigerian prince who needs help to move his wealth to the United States. The prince needs someone to deposit a check for him, then wire out the funds. They pay the wire fee but get to keep part of the funds from the deposited check. Typically the victim’s bank informs them that they’ve deposited a bad check well after they’ve wired out the funds for the “Prince.” In the new variation, scammers impersonate well-known figures of the tech world like Elon Musk or John McAfee, often on Twitter. They use a name similar to the celebrity, and their picture. They claim to be giving away cryptocurrency to the first 100 people to respond to the tweet, but there’s a catch; respondents need to send a small amount of crypto to pay for the “fees.” Naturally, the scammer just keeps these small bits of crypto and does not send anything in return. Here’s “Elon Msk” giving away some free Bitcoin: https://preview.redd.it/jwasx3v3oj611.png?width=622&format=png&auto=webp&s=d1a9da3a2cc9859527e3b7939c61c61428a71a85 Thankfully, crypto security is steadily improving. The rise in value and mainstream adoption have attracted established cybersecurity players, and innovative new storage solutions are being created with increasing frequency. Our firm Saifu has developed its own crypto storage hardware in partnership with Thales. “Users’ crypto keys are stored in Thales hardware security modules, which cannot be accessed remotely. Even if we were ever hacked, our customers’ cryptocurrencies are protected. As it becomes safer and easier to buy and use cryptocurrencies, we believe mainstream adoption will skyrocket. The crypto revolution is just beginning,” Vigovsky, the Saifu co-founder, says.
The Speech of Mr. Sean He, co-founder of BIT.GAME, in Singapore
Ladies and gentlemen, Good morning/afternoon My name is Sean He and I am one of the co-founders of BIT.GAME. As we know, in 2017 the cryptocurrency and blockchain ecosystem experienced an explosive growth. Bitcoin, ETH, Ripple, Litecoin, etc., value has increased several times over the past year. Looking back in history, the Internet ecosystem also made a great development before the 2000s. After the bursting bubble, many companies broke down and disappeared. Now a new problem has arisen: what kind of companies will survive and become the giants in this industry? These will include industries such as SE(search engine)，e-business and gaming. Google, facebook, Apple, Tencent, and Netease, all have gained huge profits from the gaming industry. In my opinion, the next true blockchain breakthrough will be born in blockchain game. I am not sure if you all have heard of a popular movie that was recently released named “Ready Player One” directed by Steven Spielberg. I myself have watched it3 times. The first time I went to cinema was with my wife/girlfriend/son. My first impression was WOW，the huge screen filled with virtual reality game. I couldn’t help but to think that it would be the future of gaming. A few days later, I watched Ready Player One again with my classmates, but this time I had three questions: The first question was, Wade Watts, the heroand top player in OASIS, seem to be the best of the best but in reality,was living in the slums of Washington. The second question was, although OASIS builta huge world，the founder still hasa red button which is capable of destroying the whole game world. The third one was, how did one person build such an incredible game. Halliday?Or by a company? Then I was suddenly enlightened, blockchain game would solve all these problems. For my third time, I took my colleagues to watch this film Well, it is not only a fictional story, but also a perspective vision. For all we know, if there is no Mt.Gox, Huobi, Binance, our cryptocurrency could not possibly increase so rapidly. Only with more circulation comes more value. The exchange is the core of cryptocurrency. If blockchain game plans to have a rapid growth, there must be an exchange which can serve for it. （SMILE）BIT.GAME will be the exchange. BIT.GAME is the world’s first blockchain game exchange. And we are an exchange which will grow with our customer, game players and traders. BIT.GAME has POC, short for Proof of Contribution, which is a mining pool for all game players and traders having a double buy-back program. Firstly, we will distribute 50% of exchange profits for buy-back and destroy 50% of our token BGX (which means BIT.GAME EXCHANGE); Secondly, we will use 30% of the exchange profits to buy-back, in order to restoremining poolconsistently. To support our exchange, BIT.GAME serves game developers with BIT.GAME solution. For some data-mapping blockchain games, we offer an off-chain circulation solution. With the IOU method (short for I OWN YOU), exchanges and game record transactions will be held in centralized servers. This solution offers a direct connection to help players to trade tokens from game to exchange more safely and quickly, vice versa. To help game developers issue game assets into single public blockchain or multi-blockchains, we offer them our solutions. Beside solutions, we are also building a platform to incubate blockchain games. In January 2018, Vitalik Buterin mentioned a DAICO (short for Decentralized Anonymous Initial Coin Offering) instead of an ICO, for better investment risk control. Well, for some blockchain programs, it needs one year or more to realize DAICO. DAICO contains more uncertain factors for these programs making it not suitable for them in the long term. In the meantime, just like blockchain game, be known to all, the gaming industry is far more mature than blockchain 3 to 6 months is enough time to develop a stable game, making it more suitable for DAICO. That being said, we are proud to announce the BIT.GAME platform is basedonDAICO. (Now I want some applause ) Beyond a centralized exchange, we still plan to develop an AI based on a Decentralized exchange with Matrix AI Network. First of all, we will develop an Integrate Wallet with cross-chain, thus every wallet could be visible onto chain. With AI technology of Matrix, we offer users a larger transaction loop and lower transaction cost. twitter https://twitter.com/BitGameEN Github https://github.com/BitGameEN facebook https://www.facebook.com/BitGameExchange/ youtube https://www.youtube.com/channel/UCUD1VIVdyk0GGDmlUv0EqeA telegram https://t.me/BIT\_GAME\_CHANNEL
The biggest bitcoin exchange heist occurred in 2014, when Japan-based Mt. Gox said that attackers stole nearly $500 million worth of the digital currency. And in 2016, hackers nabbed about $72 ... Search. News Nov 4, 2020 ... digital currency proponents knew something was fishy with the crypto trading platform Mt Gox. The bitcoin community later found out that the exchange was hacked and ... The user clarifies that Mt. Gox used to be the largest BTC exchange back then, and it was responsible for more than 70% of Bitcoin transactions at its peaks. At the time of the attack, one bitcoin was worth roughly around $400, whereas currently, it trades at above $10,000, representing an increase of more than 2400%. Documents Show Craig Wright Claims to Own a Bitcoin Address With 80,000 BTC Stolen From Mt Gox On June 12, 2020, the former CEO of Mt Gox, Mark Karpeles, tweeted about the notorious Craig Wright ... At the beginning of 2014, Mt Gox, a bitcoin exchange based in Japan, was the largest bitcoin exchange in the world, handling over 70% of all bitcoin transactions worldwide. By the end of February of that year, it was bankrupt. Anyone who was using Mt. Gox lost access to their assets, and it has been a cautionary tale for crypto investors. While the assets weren’t all lost, anything that was ... While Binance is one of the largest crypto-currency exchanges, the heist is not the largest the Bitcoin world has seen. In 2014, Mt Gox was hacked to the tune of $470m. Bitcoin SV founder Craig Wright recently warned everyone should remove their crypto assets from Binance as soon as possible as another “Mt. Gox “scenario. The Binance CEO has now responded to this. Binance had a busy month and had to fight critics and conspiracy theories about internal problems. However, the scaremongering about the stock ... Former Mt Gox creditor advocate Andy Pag announced in April that he had sold his stake to a New York-based investment firm for $600 per bitcoin. He did not name the firm at the time and did not ... Mt. Gox was once the largest cryptocurrency exchange. The Japan-based platform was responsible for more than 70% of all Bitcoin transactions during its peak years ago. However, the exchange became the victim of a massive attack in 2014 that resulted in the theft of 850,000 bitcoins (worth about $470 million at the time or nearly $10 billion ... Mt. Gox. Bitcoin Settlement Deadline Pushed to October 2020 The Tokyo District Court grants the Rehabilitation Trustee in the Mt. Gox case another extension for the submission of the reimbursement proposal.
What do you think about current markets? Are you optimistic? Feel free to leave a comment below! Thank you all so much for watching the video. If you enjoyed the video, please consider dropping a ... Meaning Mr Kobyashi will not dump any more Bitcoin until then, I don’t think this is true. The suggestion that this is what will happen came to me when someone mentioned me in a conversation on ... Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collecti... Search. Loading... Close. This video is unavailable. ... The Curse of Mt Gox Still Haunts Us - Bitcoin Crash - Duration: 9:24. Bitraged 5,615 views. 9:24. 80 Trillion Dollar Bitcoin Exit Plan ... The SEC came out with a very negative tone on digital asset exchanges, Binance dealt with a phishing/hack/pumping issue and the Mount Gox trustees announced a major Bitcoin liquidation. SEC ... Binance ging es (fast) an den Kragen - Hacks, Verbot von Krypto für Beamte, gestohlenes Mining-Equipment und noch mehr im Wochenrückblick! Unterstütze unsere Aufklärungsmission mit einem Like ... Search. Loading... Close. This video is unavailable. Watch Queue Queue. ... The Strange Binance Hack, Mt Gox Crashing BTC, And Twitter Spam MrSotko CryptoCurrency. Loading... Unsubscribe from ... Willkommen zur Bitcoin-Informant Show Nr. 314. Heute geht's um folgende Themen: Bitcoin Flash Crash, Binance Hack & Mt.Gox News, Coinbase Indexfonds & Bittrex listet TrueUSD als Gegenstück zum ...