This week we selected these three stories that matter in The Blockchain Economy:
Story 1: Security Hacker Steals $1.35 Million From Cryptocurrency Trading App
This was a small hack – “only” $1.35 million. It was significant for the entrepreneurs building the trading app as this was all they had raised. Imagine closing a seed round, celebrating, then finding all the money gone. The hacker took money from an Ether wallet and early indications were that the hacker got control of one of the team’s physical devices. We can see the wallet address of the hacker and that wallet address appears to have been used in a previous hack.
Takeaway: “security is Job No 1”. Don’t start marketing till you have it figured out. Don’t invest in any ICO if you are not confident of the security. Rumours circulated that this was a so-called “exit scam” (aka an inside job in old lingo, meaning the ICO promoter stole from ICO investors). Whether through regulation or market forces, these low quality ICOs will fade from the market.
Story 2: Telegram CEO Says Apple Is Blocking Telegram Updates Worldwide.
Telegram raised $1 billion and is a force to be reckoned with in the market. They hit resistance from state actors when the Russian authorities ruled that the app was illegal in the country (Telegram founder is Russian). This was after Telegram refused to hand over encryption keys to the Russian government. Now it appears as if Apple is blocking Telegram in the app store.
Takeaway: many users want privacy, many governments do not. Apple needs to decide which side they are on.
Story 3: EOS ICO Takes the Cake: $4 Billion Raised
You thought Telegram raising $1 billion was news. How about EOS raising $4 billion? How much does software development cost?
Takeaway: We started with a story about a small sum – $1.35 million (but a lot to the founders who lost all their seed capital). We then moved onto a story about big players – government and Apple) disrupting what had been the biggest ICO ever – $1 billion. We end with an ICO that makes Telegram look small – EOS ICO was 4x Telegram. That is why we chose an image of hyperinflation from Weimar Germany. This is about asset inflation due to nearly a decade of central bank money printing.
Bernard Lunn is the CEO of Daily Fintech and provides advisory services to companies involved with Fintech (reach out to julia at daily fintech dot com to discuss his services).
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