Core magazine march 2018 by Crypto Core Media

UK's Lawmakers Plan To Formally Investigate Cryptocurrencies

BLOCKCHAIN

NEWS

MAGAZINE MARCH 2018

Bank Of America Threatened By Cryptocurrencies Bitcoin Q&A: Criminalization of ownership? (with Andreas Antonopoulos)

Petro Cryptocurrency Expected To Draw Investments From Turkey & Qatar

Q&A With. Stellabelle - A Steemit Early Adopter, Author and Artist

current.us

Crypto Core Media

What is the Core Group

Core Group is the name given to our multi medium ‘Crypto’ project built from the ground up by real people. As blockchain enthusiasts, our executives are community members, investors and managers in a vast network of technologies. We are a well advised panel with the highest moral and ethical values, personally handpicked by both CEO and Founder. We work diligently to inform all new and existing participants in the world of Cryptocurrency. Using a variety of platforms, we report on project improvements, ground breaking achievements and fraudulent activities. We embed a sensible moral code to ensure there are no misunderstandings regarding our motivations. Copyright © 2018 Core Group LLV. All rights reserved. Ab Initio

Slack Channel here https://join.slack.com/t/ coregroup-global/shared_invite/

Table of Contents Bitcoin Q&A: Criminalization of ownership? (with Andreas Antonopoulos)

UK's Lawmakers Plan To Formally Investigate Cryptocurrencies

Taiwan's First Bitcoin Robbery Leads to Four Arrests

Lisk Has "Relaunched" Itself With A New Front-End Design & Wallet

Finnish Government Releases Guidelines on Handling Its 2,000 Seized Bitcoins

NEO Platform Offers "Smart Economy" On The Blockchain

Bitcoiin, the Controversial New Crypto, Is Being Promoted By Steven Seagal

Prime Shipping Foundation Wants To Develop Its Own Cryptocurrency

Shark Tank's Robert Herjavec Sees Bitcoin Reach New Highs Before Crashing Down

Polish Central Bank Admits to Secretly Fund YouTube Videos Slandering Cryptocurrencies

UnionBank Will Help Visa Implement Its Blockchain-Based

Silicon Valley Congressman Argues Bitcoin Mining Energy Consumption Needs to Be Taxed

Biography - Omar Faridi

SEC Halts Trading In Three Crypto-Linked, "Penny Stock Companies"

Stellabelle, Steemit, and Slothicorn Pave The Road To Wealth For Crypto Artists

FCC Threatens Arrest, Hardware Seizure of Bitcoin Miner for Causing Harmful Interference

FINMA, the Swiss Regulator, Releases New Cryptocurrency Regulations

Atari Reveals It Will Create Its Own Cryptocurrency, Shares Jump to 5-Year High

It's "Disgusting" People Buy Bitcoin, Says Warren Buffett's Investment Chief

Crypt-UK Formed By Leading Crypto Companies To Promote Best Practice

Thai Bank Blocks Local Cryptocurrency Exchangeâ&#x20AC;&#x2122;s Transactions Citing Missing Documents

Poloniex Staff Denies Hack Rumors, Points to Phished Credentials

Bank Of America Feels Threatened By Cryptocurrencies

CoinDash ICO Hacker Mysteriously Keeps Returning Stolen ETH

Cardano Plans To Solve Problems Plaguing Major Cryptocurrencies

Mango Startups Fuses Venture Capitalism And ICOs

Americans Might Not Be Reporting Crypto-Related Earnings To Uncle Sam

Continues on next Page

Cryptocurrency Optimism | Think Rich To Grow Your Stash And Increase Value

Georgia Wants To Accept Cryptocurrencies As Tax Payments

100

Switzerland Is Interested In Developing Its Own Cryptocurrency

102

Austria May Regulate Cryptocurrencies Using Gold, Derivatives as Model

106

French Watchdog AMF Gets Tough on Bitcoin Derivatives

108

Turkey Has Revealed Plans To Create Its Own Cryptocurrency

110

Iran Announces Plans To Develop Its Own Cryptocurrency

112

KOMODO - The Sleeping Dragon

114

NEM President Says Cryptocurrency Price Manipulation Is "Unavoidable"

117

Hackers Use Telegram Exploit to Infect Users with Cryto Mining Malware

119

Blockchain News

BLOCKCHAIN

NEWS

MAGAZINE

DIRECTORY

3rdstryker 3rdstryker@coregroup.info

Futurist futurist@coregroup.info

Lori Brown aka Lorilikes lorilikes@coregroup.info

Brandon Henwood arkansas.lean@coregroup.info

Marlon Diaz aka MACO maco@coregroup.info

Antonio Madeira aka Kanoptx kanoptx@coregroup.info

Omar Faridi omar@coregroup.info

Francisco Memoria franciscom@coregroup.info

Farrukh farrukh@coregroup.info

Vincent Pereira aka House house@coregroup.info

Angel Figueroa angelfigueroa@coregroup.info

Angelo Timoneri aka Lootz lootz@coregroup.info

Ignacio Figueroa aka TheWalk_er ignacio@coregroup.info

Core Magazine

March 2018 March 2018 March 2018 March 2018 March 2018 March 2018 March 2018 March 2018 March 2018 March 2018 March 2018

SPECIAL ARTICLES

Bitcoin Q&A: Criminalization of ownership? (with Andreas Antonopoulos)

omebody asks, ‘What are your thoughts on the U.S. Senate Bill S.1241 to criminalize concealed ownership of Bitcoin?” Andreas: I have read the language of the bill. First of all, in order for this to become law, it has to be considered by the Senate and then the House. And, reconciled in Committee if there’s two different versions. Then, it has to be voted on by both House 10

Core Magazine

and Senate. Then it has to be signed by the President. Or, included in another bill. Then, it has to translate into regulatory rules for agencies. Then, the government and the regulatory agencies get sued. And, the courts get to interpret the latitude that this bill has to actually criminalize this behavior. There’s a very long road and a lot of things can change. So, over the years, we’ve seen many people freak out about proposed

SPECIAL ARTICLES

language for a proposed bill in one of the two Houses that will do X, Y, Z. It takes a long time for that to actually get to affecting Bitcoin holders. So, what Senate bill S.1241 does is it has some language that extends some of the requirements for money laundering and controls for terrorist financing, or counterterrorist financing, and KYC...extends some of those explicitly to organizations that manage digital currencies. And, that includes exchange [crypto-currency exchanges] and things like that. It also extends some of the money laundering laws that already exist in terms of structuring and concealing transactions to the use of digital currencies. This means that this may make it illegal to run a mixer in the United States, for example. [not sure] as it’s known…may. Who knows where this goes. Who knows how far it goes. And, who knows what comes out once its challenged in court. These things take a long time. I’m not particularly worried. This doesn’t really criminalize concealed ownership to Bitcoin. It criminalizes certain activities that indicate concealed ownership of Bitcoin. For example, if you have an obligation to report for all the reasons and you failed to do so. Or, if you are running a tumbler or an exchange in a way that is violating anti-money laundering. [unintelligible (user x)] asks: If having Bitcoin is criminalized in your country, will you continue to publicly advocate for it? How best to prepare for this possibility?

Andreas: If simply owning Bitcoin (assuming you mean United States) in my country, which is where I spend some of my time nowadays, but I’m not affiliated with one country. And, if you are, [then] that’s the first of your problems. If it was criminalized, simply the ownership was criminalized, that would tell me one thing: I no longer live in a country where there is respect for individual rights. There’s absolutely no logical reason why simply the ownership of numbers, digital keys, and control over a digital currency without any relationship to committing an actual crime against anybody else. If that was criminalized, I would consider that criminalization of speech, of association, of expression, of political affiliation. That would, in my mind, violate the fundamental tenants of liberty. I would use my Bitcoin to purchase the first and most easily accessible airfare, to get the fuck out of that hell hole. Now, not everybody can do that. But if your country criminalizes simply the possession of numbers, and the means you used to express yourself, associate yourself, with other political organizations...you do not live in a free country. You’re already quite far down the slippery slide. You should maybe exit before things get really, really difficult. The second part of the question is how to best prepare for the possibility [of Bitcoin criminalization]. [The answer is] be prepared to travel. Have a valid passport. Keep a clean record. Be ready to exit, even when others are mocking you for being “paranoid.”

Core Magazine

Blockchain News

UK's Lawmakers Plan To Formally Investigate Cryptocurrencies

UK’s Lawmakers Plan To Introduce New Crypto Laws Britain’s Treasury Select Committee has expressed the need for new cryptocurrency regulations. UK’s lawmakers have also 12

Core Magazine

launched an investigation to determine if cryptocurrencies can be beneficial to consumers, and the types of risks associated with them. Nicky Morgan, a British Conservative party politician and head of the Treasury Committee, stated, “People are becoming increasingly aware

Blockchain News

of cryptocurrencies”. However, she pointed out that these same people might not realize that digital currencies are still not properly regulated in the UK. As part of their probe, regulators and researchers will try to determine if digital currencies will be able to eventually replace fiat currencies as a medium of exchange. They’ll also look at how potentially disruptive the cryptosphere could be in terms of the way the country’s public sector operates. Additionally, the investigation will carefully examine how regulatory authorities in other jurisdictions have responded to their cryptomarket. This is meant to assist the British government in learning how to deal more effectively with their own crypto industry. In order to conduct their crypto investigation, UK’s lawmakers plan to consult the experts in this field. During their consultations, regulators will collect written and verbal proof about information related to cryptocurrencies. After analyzing their findings, they’ll advise the British government on the best course of action when it comes to monitoring their nation’s crypto-market.

Balanced Crypto-Regulations

Like authorities in other countries, UK’s lawmakers want to make sure that they adopt a balanced approach in regulating cryptocurrencies. Moreover, British politicians have indicated that they’d like to ensure consumer safety in a manner which will not impede the growth of the nation’s crypto-market. Morgan explained, while researching digital currencies, UK’s parliament would like to determine “to what

extent they could disrupt the economy and replace traditional means of payment”. Notably, these developments have come during a time when other European regulators, namely France and Germany, have grown quite concerned about the rise of various crypto-related scams and hacks of crypto-exchanges. During the G20 Summit, which will be held in Argentina this year, world leaders are expected to discuss “the policy and monetary implications of cryptocurrencies”.

Crypto Industry Clarity Of Thought

Requires

Alison McGovern, a British Labour party politician and member of the Treasury Select Committee, acknowledged that UK’s economy could potentially benefit from the crypto industry, as long as the associated risks are mitigated. Therefore, she suggests that the British government start thinking “more clearly” about the emerging digital currency market. It seems that UK’s lawmakers are moving in the right direction. Whenever a new technology is introduced, there are always people who will look to use it in a harmful and unlawful manner. However, this doesn’t mean that there’s something wrong with the technology, in this case cryptocurrencies. Moreover, like any new invention, crypto-related technology should be used responsibly. Omar Faridi omar@coregroup.info Core Magazine

Blockchain News

Taiwan's First Bitcoin Robbery Leads to Four Arrests

aiwanese authorities recently arrested four men over a bitcoin robbery that netted them 5 million Taiwanese dollars, worth roughly US$170,000. According to police, this was the first-ever bitcoin-related robbery in the country. To get the money, three men in their early 14

Core Magazine

twenties reportedly lured a bitcoiner, surnamed Tai, to a central city. They lured their victim by claiming they were interested in buying bitcoin from him, face-to-face. Tai wasnâ&#x20AC;&#x2122;t naĂŻve, and brought a friend to accompany him and presumably help if anything went wrong during the sale. Once Tai showed the assailants he had the bitcoins

Blockchain News

on a wallet on his phone, they attacked him and his friend, so they could transfer 18 BTC to their own wallet using the victim’s phone.

“The police saw bloodstains at the scene... after further investigation, it was discovered to be a bitcoin virtual currency robbery,”

a statement read. After robbing Tai, the criminals forced him to drink Kaoliang, a strong Taiwanese liquor. Their goal was to make it look like he was involved in a drunken brawl. Their plan, however, failed as police managed to catch all four suspects.

Bitcoin robbery arrested

suspects

Tai and his friend were seemingly lucky, as someone called the police over the dispute. While two of the criminals managed to flee the scene, a third one was detained. The crooks who fled the scene were later captured by police.

mastermind behind the bitcoin robbery. It’s unclear if the bitcoins were returned to their rightful owner, or if they ever will be. Following the theft, the criminals could have used a mixer to hide the stolen funds. Since they were caught, however, they could be forced to pay back the victim in fiat. Given bitcoin’s volatility, it may not be easy to determine an adequate compensation. Criminals usually acquire cryptocurrencies by either stealing from other people after hacking them online, or using their computer resources to mine. As covered by Core Media, Tesla’s cloud was recently used to mine, while earlier this year cryptocurrency exchange Coincheck was hacked and lost over $500 million worth of NEM. Francisco Memoria franciscom@coregroup.info

One of them, in an attempt to escape the long arm of the law, fled to the outlying island of Kinmen. A fourth suspect, surnamed Shih, was also arrested. Shih is believed to be the Core Magazine

Blockchain News

Lisk Has "Relaunched" Itself With A New FrontEnd Design & Wallet

Lisk Platform Rebrands Itself

he developers of the Lisk blockchain platform held a relaunch event in Berlin on Tuesday, February 20th. During the event, the Lisk team revealed its long-term goals and objectives regarding 16

Core Magazine

further development of their network. Additionally, the “new look” for the platform was on display. Max Kordek, the company’s co-founder and director, stated,

“Rebranding normally only involves a change of design, but we, while being in that process, determined that we

Blockchain News

need to change much more”. Lisk’s relaunch includes a modified frontend design, dashboard, and wallet. Kordek explains that one of the main objectives for the changes is to enhance user accessibility for the newcomers to the crypto space, as well as for the more experienced users. While describing his company’s rebranding process, the director said that it started off “like a tech project”. However, it then progressed to being more about “enabling people” by allowing them to easily incorporate blockchain technology into their existing business practices.

Forked From Blockchain

The

Crypti

Lisk’s public blockchain platform was introduced in early 2016 and began as a fork of the Crypti blockchain. Soon after the fork, an ICO was launched by its founders to raise funds for its development and also to determine its distribution. Through their ICO, the company was able to accumulate 14,000 BTC and this helped Lisk’s mainnet go live, allowing it to be traded on cryptocurrency exchanges. Lisk’s developers want it to become a modular cryptocurrency. This type of design places every Blockchain App on a separate “sidechain”. The Lisk development team describes sidechains as “an independent cryptographic ledger” that latches onto the main blockchain, without affecting network

speed and security. Moreover, sidechains are created for the purpose of maximizing scalability as more apps are added to the network. Notably, scalability issues have been a major concern with Bitcoin and even the Ethereum platform.

Plans To Improve Accessibility Lisk’s developers recently announced the launch of a fund that will be used to create “high-quality sidechains”. In fact, Kordek stated that he has set aside $50 million (1,700,000 LSK) for the project and expects more investments to pour in, some even around 500,000 Euros. Kordek also said that his company will be trying “to attract new people, and these people don’t know anything about blockchain. So we also have to find ways that we can teach and educated [sic] them about this technology”. Based on these new developments, Lisk’s team seems to be focusing a lot on the academic side of crypto. In order to help increase awareness and understanding of distributed ledger technology, the Lisk group will be launching a blockchain “academy”. While discussing this initiative, Kordek remarked that Apple taught everyone how to use the iPhone. Therefore, his company wants to educate people about blockchain and its potential use cases while also getting them to start using Lisk’s technology. Omar Faridi omar@coregroup.info Core Magazine

Blockchain News

Cryptocurrencies Could Drop To “Near-Zero” Says Vitalik Buterin

Cryptocurrencies Could Crash At Any Time

thereum co-founder Vitalik Buterin recently issued a warning about investing in cryptocurrencies. He stated, via Twitter, that although digital currencies are an emerging asset class, they “could drop to near-zero at any time”. 18

Core Magazine

Therefore, he advised crypto enthusiasts to invest only as much as they “can afford to lose” According to Buterin,”traditional assets” are still the best choice of investment. Notably, in December 2017, the skilled computer programmer and writer said that the crypto

Blockchain News

craze was similar to paying an outrageous $450 million for Leonardo Da Vinci’s “Salvator Mundi” painting. Previously, the Ethereum co-founder also remarked that cryptocurrencies and their underlying technology has been overhyped, and implied that it has been given more credit than it deserves.

Twitter Users Think Vitalik Is Spreading “Unnecessary Panic”

He then went on to add that cryptorelated platforms must be drastically improved. Furthermore, he urged the crypto-community to focus on actually learning about how cryptocurrencies work, instead of always obsessing over their prices, and thinking of them as a way to get rich. In response to his latest statements regarding cryptocurrencies, a number of Twitter users felt that he was spreading “unnecessary panic”. A user by the name of FAB-IT Solutions tweeted that “Vitalik every one knows that by now. By sending such messages all you do is create unnecessary panic”. Another user asked Buterin who was responsible for creating such fear in his mind. The same user, ssfaser, then sarcastically remarked, “sure global equity and bond markets are the way to go...NOT”. Meanwhile, Crypto Capilla even questioned whether Buterin was “okay”.

Crypto Enthusiasts Disagree With Ethereum Co-Founder

It seems that some people have more faith in cryptocurrencies, particularly Ethereum’s

ETH, than Vitalik Buterin himself. In fact, Chin Khac Le tweeted, “No...ETH is my safest storage”. His comments were obviously in reference to Vitalik recommending that it’s safer to keep your savings in traditional assets. Additionally, there was one crypto enthusiast who felt it would actually be better to lose money in the crypto-market than to live with the “regret” that you never invested in it. Even though this last statement by Dario osorio might not make much sense, one could argue that many crypto investors are a lot more bullish about cryptocurrencies than the Ethereum co-founder. However, Vitalik does appear to have some legitimate concerns regarding the current state of the crypto industry, For instance, digital currencies are widely being used to aid in carrying out a number of illegal activities such as money laundering. Furthermore, criminals have also hacked into many crypto-exchanges and stolen hundreds of millions of dollars. There are other concerns about cryptorelated technology such as the large amounts of electricity being consumed due to cryptocurrency mining and relatively slow transaction processing times, especially when using Bitcoin. These problems are significant; and, it might be why Vitalik recently cut down his involvement with Fenbushi Capital, a Chinese venture capital firm that invests in Blockchain startups, to focus on further developing and improving the Ethereum network. Omar Faridi omar@coregroup.info Core Magazine

Blockchain News

Finnish Government Releases Guidelines on Handling Its 2,000 Seized Bitcoins

ccording to a report by Bloomberg, Finland is currently trying to figure out how to handle 2,000 seized bitcoins. The government now reportedly issued guidelines on how these should be stored by authorities, and what will happen to them. 20

Core Magazine

The 2,000 BTC are worth roughly $23 million, down from nearly $40 million when the cryptocurrency was at its all-time high. The funds are now going to have to be stored offline, in a device that canâ&#x20AC;&#x2122;t access the internet, Bloomberg reports citing official Treasury documents.

SPECIAL ARTICLES

This essentially means Finnish authorities are going to have to create a cold storage solution, at least until a court rules the coins can be traded for euros. Per Bloomberg, the Helsinki customs office wouldn’t indicate how the bitcoin has been stored until now. Presumably, not in a safe way. Most of the funds authorities hold, according to reports, have been confiscated in dozens of raids dating back to 2016. These likely came from dark net market Valhalla. Finnish authorities seized €1 million worth of bitcoin from it at the time.

coins. One of the sales, held in mid-2014, saw investor Tim Draper buy 29,656 BTC. Today, those coins are worth over $345 million. While some investors make fortunes buying bitcoin early on after seeing its potential, others argue against it. As covered by Core Media, Warren Buffett’s investment chief recently stated that it’s “disgusting” people buy bitcoin. Francisco Memoria franciscom@coregroup.info

Bitcoins to be treated as an asset The new guidelines also point out that authorities need to treat Bitcoin and other cryptocurrencies as assets, and not currencies. This means that cryptocurrencies are an asset that can’t be accepted as a means of payment or as an investment. The 2,000 BTC can be converted to euros, once a court has ruled that they won’t be returned to the individual or organization they were seized from. The coins will be sold through a public auction, and not through a cryptocurrency exchange for security reasons. Other governments have also had to deal with the problem Finland is now solving. In the US, where the famous darknet market known as The Silk Road was taken down, authorities decided to simply auction off the Core Magazine

SPECIAL ARTICLES

Core Magazine

Blockchain News

NEO Platform Offers "Smart Economy" On The Blockchain

NEO Cryptocurrency Platform Basics

EO has become the 6th largest cryptocurrency platform, with a market capitalization of over $9.1 billion at the time of this writing (CoinMarketCap). Its price has gone up significantly from around 80$, at the beginning of this month, to the current price of approximately 140$. Although the crypto-market’s prices fluctuate wildly, and NEO’s market cap is no exception to that,

it still doesn’t take away the fact that it is generally recognized as a major cryptoplatform. So, what are the factor(s) that could have contributed to its popularity? Before addressing this, let’s first go over the basics of this platform, which is often referred to as one of “Ethereum killers” by its proponents. Developers of the NEO network claim that it functions as a next-generation “Smart Economy” platform. Moreover, a “Smart Economy” is created, according to NEO’s development team, through the use of Core Magazine

Blockchain News

Digital Assets, Digital Identity, and Smart Contracts. These features are implemented using the “Delegated Byzantine Fault Tolerance - dBFT” consensus protocol. Like many other crypto-platforms claim, NEO’s architects consider it to be an advanced version of the “Proof of Stake” algorithm.

Delegated Byzantine Tolerance Algorithm

Fault

When dBFT is used, thousands of nodes (network participants/entities) are reportedly able to reach consensus within seconds, without using much energy. Per NEO’s creators, it can handle 1000 transactions per second (TPS), and the goal is to eventually be able to process 10k TPS. This seems to be a significant improvement compared to BTC and ETH transactions, which only average around 3-4 and 15 TPS, respectively. Furthermore, its architects also chose to use coding languages for its Smart Contracts that the majority of programmers are familiar with. These languages include C#, Java, JavaScript, VB.net and Python.

Development Of NEO Made More Accessible To Programmers Since NEO’s source code, is written in common coding languages, it is much easier for developers to program dApps (distributed applications) on NEO’s blockchain. To further advance its development efforts and encourage more people to adopt its technology, NEO rebranded itself from “Ant shares” in mid-2017. Throughout this time, it has often been called “China’s Ethereum”, and was originally launched by Hongfei DA 24

Core Magazine

, in 2014. Hongfei is considered, by many, to be one of the prominent pioneers of China’s crypto-community. The NEO founder happens to be the CEO and co-founder of Onchain as well, a Shanghai-based blockchain R&D company. Hongfei’s main partner is OnChain CTO Erik Zhang, one of NEO’s core developers. Together, they first started developing Antshares in 2014. It is necessary to mention OnChain while explaining what NEO is, because both entities are being worked on in China’s crypto-community, so their separate development efforts could impact one another, or even overlap. To make things clear, OnChain is a for-profit organization, and doesn’t have ownership rights to the NEO platform itself. In fact, NEO is among one of many community crypto-projects. Moreover, even though they have some similarities as far as their origin, they’re both separate entities, legally and conceptually, while also focusing on different missions. Additionally, NEO is an open-source project, dedicated to the development of smart contracts. Meanwhile, OnChain is an independent company developing a product called DNA (Distributed Network Architecture), a technology that allows users to create various assets that are issued and traded through its own smart contracts.

Pertinent Details About The NEO Platform

As mentioned, NEO is a “Smart Contract” system like Ethereum, but it integrates Digital Identity and Digital

Blockchain News

assets to make it a “Smart Economy”. This helps NEO compete with other established blockchains like NEM’s Mijin blockchain, which also uses C++. What makes NEO’s implementation unique is that it uses what it calls designated bookkeepers, which are nominated and chosen through a voting system by NEO’s holders. Bookkeepers are tasked with validating the transactions on NEO’s blockchain. Therefore, each bookkeeper verifies the blocks on NEO’s ledger, and consensus is achieved if two-thirds of the nodes agree with the bookkeeper. Smart contracts on NEO’s network are powered by two tokens, namely NEO and GAS. NEO is the native token used for network management, whereas GAS is the fuel token for powering NEO network. Unlike Ethereum, where the GAS is deducted as a small portion of Ether, GAS tokens in NEO are paid as dividends to NEO stakeholders. GAS itself is a fairly wellknown cryptocurrency with a reasonable price and market cap. By Hoarding NEO, you will be earning GAS. Notably, Binance and Kucoin are two exchanges that are rewarding GAS to NEO holders.

NEO’s “Real Strength” NEO’s real value and strength lie in working towards a regulatory compliant smart economy platform. That’s why its developers say it has overcome many challenges and continues to grow, despite Chinese regulators crackdown on virtual currencies. Another reason for its growth is often attributed to the ease of developing decentralized applications on top of NEO’s

blockchain. Its support of all the standard programming languages, compared to Ethereum’s applications built only with its own Solidity language, could prove critical to its mainstream adoption. Also, NEO holders are rewarded with GAS tokens as dividends as a form of recognition and appreciation for supporting the network and helping it grow in value. This could be another reason why NEO’s platform might further penetrate the cryptocurrency market. Furthermore, there have been considerable scalability issues with some of the major crypto-platforms such as Bitcoin and Ethereum, and NEO seems better equipped to scale. That’s because it uses what its supporters consider to be not only a faster, but more efficient dBFT algorithm (compared to Proof of Work and Proof of Stake). A few issues with NEO are that the NEO team holds most of the nodes. It might be better for if most of them are “liberated” in the future and become a truly decentralized platform for it to be accepted globally. Please note that this article is not a comprehensive explanation of what the NEO platform actually does, and how it works. It is intended to increase awareness among crypto-enthusiasts, and inspire them to learn more about this platform, in addition to other crypto-platforms, in general. Kadhir Velavan and Omar Faridi omar@coregroup.info

Core Magazine

Blockchain News

Bitcoiin, the Controversial New Crypto, Is Being Promoted By Steven Seagal

Bitcoiin Crypto Chooses Steven Seagal As Ambassador Steven Seagal, the world famous Hollywood actor and martial arts expert,is now promoting Bitcoiin, a controversial new cryptocurrency. In fact, he released a statement via Twitter that he was going to be the coin’s official new ambassador. The creators of the heavily 28

Core Magazine

criticized Bitcoiin digital currency claim that it will be much better than Bitcoin. They even refer to it as BitcoiinGen2 (B2G), a second-generation cryptocurrency. According to Seagal, he decided to represent B2G because it happens to stand for the same philosophical and spiritual beliefs as he does. Moreover, the Bitcoiin crypto team

Blockchain News

claims that its objectives of empowering and enlightening society with its decentralized (peer-to-peer) payment platform is based on the same principles that the famous action star adheres to. Furthermore, Bitcoiin’s developers also say that they’ve selected Seagal as their ambassador because of his philanthropic work and involvement in various charities.

Using Celebrity Power To Endorse Bitcoiin Although a number of celebrities such as famous rapper 50 Cent and Jamie Foxx have already somehow managed to associate their names with the cryptocurrency industry, Steven Seagal seems to have gone a step further. That’s because no other A-list celebrity might have actually become an official ambassador for a crypto-platform, until now. By choosing to represent this company, the “Zen master” is not only backing its new cryptocurrency, but also promoting its proprietary wallet, mining equipment, and customized service which enables users to trade its crypto for other altcoins and traditional currencies. Like many other new digital currency platforms, Bitcoiin creators promise that it will be “a superior or more advanced version of Original Bitcoin”. Perhaps its best selling point is that it claims to utilize the Ethereum blockchain, which is generally considered to run faster, more securely, and overall more efficiently than most other blockchain platforms.

Comparisons Schemes

Pyramid

Crypto-experts argue that the Bitcoiin whitepaper does not convincingly convey what problem it will actually solve. In addition, there’s no clear indication of who the people behind this new digital currency are. There also seem to be some signs that this could just be another pyramid investment scheme. Moreover, some skeptics say that the coin’s name is far too similar to that of Bitcoin. So, it could potentially create a lot of confusion and even be misleading, especially to the newcomers in the cryptosphere. Notably, Steven Seagal’s reputation isn’t squeaky clean either since he has recently been accused of rape. The allegations have been brought forward by a woman named Regina Simons, who claims that the actor forcefully undressed and assaulted her back in 1993. Other women such as gorgeous model and actress Jenny McCarthy have also accused Seagal of sezual harassment. Although we’re living during a time when even the U.S. president has been accused of immoral sexual conduct, Seagal has not actually been proven guilty. So, as the saying goes, he’s “innocent until proven guilty”. Similarly, the proposed Bitcoiin digital currency might seem shady, but there’s still a slim chance that it could prove to be a legitimate crypto-platform. Let’s try to keep an open mind. Admittedly, it might be a bit difficult in this case. Omar Faridi omar@coregroup.info Core Magazine

Blockchain News

Prime Shipping Foundation Wants To Develop Its Own Cryptocurrency

Prime Shipping Foundation

Wants Its Own Crypto Prime Shipping Foundation, which has the distinction of being the first shipping company to invoice freight in cryptocurrency, has decided to develop its own 30

Core Magazine

cryptocurrency. In order to fund its cryptoproject, the commodities shipper wants to raise $150 millionÂ through an ICO. Notably, the shipping agency was formed through a partnership between Quorum Capital Ltd. and Russian ship broker Interchart LLC.

Blockchain News

According to Prime Shipping Foundation, the conversion process between different fiat currencies would be simplified by using its own digital currency. Ivan Vikulov, the company’s CEO, also thinks that using cryptos can expedite settlement times. Mr. Vikulov’s shipping agency already has handson experience when it comes to handling large crypto-related transactions. In fact, his company shipped 3,000 metric tons of wheat from Rostov-on-Don, a port city in southern Russia, to Samsun, a city located on the north coast of Turkey. The financial transaction for the shipment was done using Bitcoin.

Bitcoin’s Lack Of Liquidity

Although the freight charges were invoiced in Bitcoins, actually using cryptocurrencies to pay for the goods was not easy, according to Mr. Vikulov. The Prime Shipping Foundation CEO stated that processing the digital transaction was challenging because of their lack of liquidity (fiat conversions) when it comes to handling higher amounts. He went on to explain that, “The conversion in and out of Bitcoin can sometimes take one or two days, and that’s not fast enough”. However, he pointed out that by using his company’s cryptocurrency, once its launched, will reduce processing times to “a few seconds”. To develop such a “fast crypto”, Prime Shipping Foundation believes that they need around $75 million. The firm also plans to process all shipping orders through its own Prime Crypto Bank, which is currently in the pipeline. Per the company, conversions

to fiat currencies from its proprietary crypto will happen instantly.

Plans For The ICO

In order to properly conduct its ICO, Prime Shipping Foundation has hired experienced auditing firms. Additionally, the company is working on acquiring a banking license in Gibraltar, where its partner Quorum Capital Ltd. is based. This seems to be a wise move since Gibraltar is known for having cryptofriendly laws. The shipping agency appears to be well equipped to handle this project.That’s because it is already trying to handle cryptocurrency transactions for bulk commodities through its blockchain-based payment platform. Distributed ledger technology has caught the attention of many other organizations as well. In fact, commodities dealer Louis Dreyfus executed what appears to be the very first farm commodity deal using blockchain tech. The transaction involved selling American soybeans to Shandong Bohi Industry Co, Ltd,, a leading provider of agricultural products in China. Clearly, cryptocurrencies and their underlying blockchain technology have numerous use cases. If Prime Shipping Foundation can successfully raise funds for its ICO and deliver on its promises, then it could help pave the “crypto path” for other shipping agencies. Omar Faridi omar@coregroup.info Core Magazine

Blockchain News

Shark Tank's Robert Herjavec Sees Bitcoin Reach New Highs Before Crashing Down

hark Tank star and Herjavec Group CEO Robert Herjavec recently weighed in on the cryptocurrency ecosystem and blockchain technology. According to the businessman, Bitcoin is going to surpass its $19,000 all-time high, 32

Core Magazine

but “is going to crash one day.” During an interview with financial news outlet TheStreet, Herjavec revealed that he’s very bullish on cryptocurrencies, although he himself is not a cryptocurrency investor. When asked, he stated that he thinks

Blockchain News

Bitcoin is “going to go way up in the short term, short term being the next few months, maybe a year”. Herjavec even claimed Bitcoin is going to surpass its all-time high, noting that he was calling it right there. However, he believes cryptocurrencies should and will be regulated. Per his words, as regulations start coming out, the flagship cryptocurrency will “come way down”. During that journey, the TV star added, there will be highs and lows. He noted that the cryptocurrency market is a very speculative one, and asserted that “on a long-term basis, it’s here to stay”.

security of a transaction” is very promising. So much so, that he believes blockchain will be able to put data back into the hands of consumers, instead of it being owned by a central authority as it is today. Moreover, Herjavec thinks people will need to “present the minimum amount of identifying information needed to make a secure transaction”. His sentiment towards blockchain technology is similar to that of fellow Shark Tank star and FUBU apparel CEO Daymond John, who on Twitter revealed it has potential:

Based on this, Herjavec went against the “hodl” mindset, stating:

“I don’t know if you want to own bitcoin right now. I think you want to get in, and you want to get out.”

Francisco Memoria franciscom@coregroup.info

Regarding security, the businessman pointed out that cryptocurrency exchanges “are not prone to great security”. To prove his point, he pointed out the recent hack at Coincheck, that saw over $500 million worth NEM get stolen.

Robert Herjavec is bullish on blockchain technology While Robert Herjavec seemingly sees bitcoin and cryptocurrencies as a bubble, he did show he was bullish on blockchain technology. According to him, the technology’s “inherent Core Magazine

Blockchain News

Polish Central Bank Admits to Secretly Fund YouTube Videos Slandering Cryptocurrencies

olandâ&#x20AC;&#x2122;s central bank, Narodowy Bank Polski, recently admitted to funding YouTube videos slandering cryptocurrencies. One of the funded videos 34

Core Magazine

saw Polish YouTuber Marcin Dubiel receive about 91,000 zloty (about $27,000) to produce anti-crypto content that gathered over 500,000 views.

Blockchain News

The YouTube video was paid for by the country’s central bank in collaboration with the Polish Financial Supervision Authority, according to local news source money.pl. The goal was to portray cryptocurrencies in a negative light, and the promotion was never disclosed in the video. The central bank’s campaign, according to money.pl, also saw videos get published on YouTube channel Planeta Faktów (Planet of Facts). The channel currently has over 1.5 million subscribers, while Dubiel’s channel is currently sitting at little over 900,000 subscribers. The video Dubiel was paid to create can be seen below. It tells the story of a young investor who goes all in on cryptocurrencies, and loses everything he put into them. The video’s description contains the hashtag #uważajnakryptowaluty, which is a website created by the Polish central bank and the country’s Financial Supervision Authority to warn citizens against cryptocurrencies. https://www.youtube.com/ watch?v=Q7GZeyXAFzo

Legality of central bank’s campaign on cryptocurrencies questioned

According to Trust Nodes, the legality of the campaign is somewhat unclear, as in a democracy, it is illegal for state actors to engage in propaganda. Whether these videos can be classified as propaganda is unclear, although the biased perspective in them doesn’t build up a good case. At the end of Dubiel’s video, for example, an evil mastermind who got him to invest in cryptocurrencies counts his earning in fiat. On Reddit, various users claimed they’d be surprised if central banks didn’t try to slander cryptocurrencies. This isn’t the first setback cryptocurrencies had to endure this year. As covered by Core Media, social media giant Facebook banned all cryptocurrency-related ads, as part of its belief that “ads should be safe.” Francisco Memoria franciscom@coregroup.info

The video’s dramatic climax occurs when the young investor is unable to pay for a meal with cryptocurrency. His date then throws fiat money at him and storms out. Poland’s central bank admitted it “carried out a campaign on the issue of virtual currencies on social media”. It didn’t, however, provide further information about said campaign. Anti-cryptocurrency videos found online don’t disclose they were paid for.

Core Magazine

Blockchain News

UnionBank Will Help Visa Implement Its Blockchain-Based B2B Payment

UnionBank Will Use Visa’s

Blockchain-Based Payment System The Philippines News Agency has reported that five of the country’s banks will be teaming up to use Visa’s blockchain-based payment system. According to the local news agency, the Union Bank of the Philippines (UnionBank) will help four other rural banks in utilizing Visa’s business-to-business (B2B) 36

Core Magazine

Connect system. The banks, which have not been named, intend to make their payment processes more efficient by using this new payments technology. Although this type of payments infrastructure has been tested out in other countries, the publicly-listed UnionBank happens to be the first bank in the Philippines to use B2B Connect. Henry Rhoel R. Aguda, Senior Executive

Blockchain News

Vice President at UnionBank, stated, “We’re co-creating the blockchain platform to be used by the rural banks”. He also added that the long-term goal is to offer similar support to as many banks as possible. Notably, Visa’s blockchain-based payment system is already being tested by the United Overseas Bank of Singapore, Commerce Bank in the United States, Sberbank in Russia, and the Shinhan Bank of South Korea. These pilot programs seem to be part of a larger effort by Visa, which is planning to commercially launch this proprietary payments system sometime this year.

UnionBank CEO Wants To Focus On SMEs

Edwin Riego Bautista, President and CEO of UnionBank, mentioned earlier that his institution was focusing on helping small and medium enterprises (SME) to adopt this new payments technology. These SMEs have already been working as partners with the bank’s corporate clients. Mr. Bautista also stated that “These are the recipients of the payments so there is a connect to know them”. He then pointed out that his bank had not been able to serve them before. However, he says that his bank is now in a much better position as far as understanding their behavior, which it does by using data analytics.

Visa & Chain Core Partnered To Create B2B Connect

Back in November 2017, Visa first introduced a trial version of this B2B blockchain payments platform by partnering

with startup Chain Core. The startup aims to assist organizations in leveraging enterprise-level blockchain infrastructure. Its partnership with Visa was announced in a detailed press release published in October, 2016. According to Visa, its B2B Connect payment system will improve the payments process between banks and their corporate clients. The global payments technology company plans to accomplish this by making transactions more transparent and predictable. Per Visa, this can be achieved by offering “near real-time notification and finality of payment” to banks and their corporate clients. Additionally, the giant payments processor says transactions with B2B Connect will be more secure and trusted. That’s because all transactions are to be executed on an immutable distributed ledger (blockchain) and the identities of all network participants are known, on what the payments company says is “a permissioned private blockchain architecture that is operated by Visa”. As most crypto enthusiasts would know, organizations around the world have taken a keen interest in blockchain technology. Clearly, it has the potential to be used in many different industries. Not only can it help businesses operate more productively, but also much more cost-effectively. With established financial companies like Visa exploring blockchain’s use cases, it will further add to its legitimacy. Omar Faridi omar@coregroup.info Core Magazine

Blockchain News

Silicon Valley Congressman Argues Bitcoin Mining Energy Consumption Needs to Be Taxed

itcoin mining consumes a lot of energy; so much so that a Silicon Valley congressman has recently argued the mining industry needs to deal 38

Core Magazine

with a tax based on its energy consumption. According to Business Insider, Dutch bank ING estimates that a single bitcoin

Blockchain News

transaction consumes enough electricity to power a home for weeks. Bitcoin’s surge last year, that saw the flagship cryptocurrency hit nearly $20,000 all-time high before its value started dropping, has led to sharp increase in consumed electricity.

aspects” of cryptocurrency use should also be addressed. Per his words, we need more regulations “whether it’s against fraud, whether it’s against environmental harms, whether it’s against the use of bitcoin to foster terrorism”.

In fact, research reports claim that bitcoin’s total energy consumption from last year was superior to the annual usage of 159 countries. Per that same research, if bitcoin mining electricity consumption keeps increasing at its current rate, it will consume all of the world’s energy by February 2020.

Is bitcoin mining that bad?

Taking all of this into account, in an interview with Business Insider, California Rep. Ro Khanna argued bitcoin mining should be regulated and confronted with taxes.He stated:

“You could have environmental regulations of what could be used or a tax on the use of the mines that are going into the bitcoin, so that if they have externalities that they’re causing the environment, that they have to pay a tax on that.” According to Khanna, a tax on bitcoin mining would “provide a disincentive” to miners, presumably because it would cut into their profit margins. He added that bitcoin miners “need to be paying a price on it”. Not stopping there, Khanna further said regulations shouldn’t stop at a carbon tax to stifle the environmental effects of cryptocurrency mining. To him, the “significant criminal

According to Digiconomist, bitcoin’s current estimated annual electricity consumption is of 49 TWh. The amount of energy consumed keeps on increasing, but this doesn’t mean cryptocurrencies are completely destroying our environment. Cryptocurrency miners use a lot of energy, and are incentivized to search for cheap, renewable energy sources that will cut their costs by as much as possible. Moreover, as covered by Core Media, they can take advantage of excess energy, as is the case with Russian energy company EuroSibEnergo. Although bitcoin mining still consumes a lot of energy – part of it generated by burning coal – the Independent claims old-fashioned cash can be worse. This, as zinc needs to be mined to produce coins, and zinc still needs to be transported to a smelter, purified, and moved to the mint before it ends up in our pockets. Estimates point this might’ve produced 107 million pounds of carbon dioxide over the years, just from pennies in the US. Francisco Memoria franciscom@coregroup.info

Core Magazine

Blockchain News

Petro Cryptocurrency Expected To Draw Investments From Turkey & Qatar

Petro Cryptocurrency Expected To Attract Many Investors

Core Magazine

enezuelaâ&#x20AC;&#x2122;s cryptocurrency regulator announced on Friday that its petro cryptocurrency will draw investments from Europe, Turkey, Qatar, and even the United States. Per the Venezuelan government, the petro crypto will launch its first sale on Tuesday and is part of an effort to

Blockchain News

circumvent US-led financial sanctions that have been imposed on the South American nation for quite some time. Critics of the proposed digital currency think that the country’s crippling economy, which Moody’s Investors Service now considers to be in a “Deeper Phase”of financial insolvency, is unlikely to attract substantial interest from international investors. Moreover, the U.S. Treasury Department has issued a warning to investors, telling them to stay away from Venezuela’s petro cryptocurrency because it might violate internationally imposed sanctions.

There Will “Surely” Be Investors From Qatar & Turkey Carlos Vargas, the petro cryptocurrency superintendent, stated that there will be several announcements regarding Venezuela’s plans for its oil-backed digital currency. He also added that “there will surely be a lot of investors from Qatar, Turkey, and other parts of the Middle East, though Europeans and Americans will also participate”. However, Mr. Vargas did not divulge any details regarding these developments. Notably, advisers appointed by Venezuela’s government suggested that 38.4 million “petro units” out of a total 100 million be sold at a 60% discount through a privately held auction, scheduled to start within the next few days. Although it’s not yet clear why the discount will be applied, it is presumably being offered to lure in more investors.

Fighting Against International Sanctions

While it’s obvious that Venezuela is using its petro cryptocurrency to retaliate against international sanctions, Turkey and Qatar’s interest in the nation’s crypto-related plans makes this move even more interesting. That’s because, just like Venezuela, Turkey and Qatar’s diplomatic relations with the United States have been severely strained. Tensions between the U.S. and Turkey can primarily be attributed to differences between their approach to the ongoing Syrian Civil War, which started in 2011 as part of wider protests across the Middle East. Meanwhile, Qatar’s relations with the U.S. have also suffered after American president Donald Trump accused Qatar of funding terrorist activities at a “very high level”, while justifying the international blockade on the country as “hard but necessary”. One could argue that Turkey and Qatar’s reported interest in Venezuela’s petro cryptocurrency could be an attempt to strengthen ties with a nation that has also been heavily scrutinized by the United States. Of course, this is mere speculation, but it wouldn’t be the first time that countries have attempted to form strategic alliances to combat the hegemonic designs of the world’s only superpower. Omar Faridi omar@coregroup.info

Core Magazine

Biography

Omar Faridi

am a computer science graduate from the University of Nevada, Las Vegas (UNLV). While I was pursuing my undergraduate degree, I also minored in mathematics and management information systems (MIS). As part of my coursework, I engaged in a number of independent study programs. These self-study courses allowed me to explore areas of computer science and applied math that interested me the most. Notably, I worked under the guidance of Dr. Wolfgang Bein, who is currently the co-director for Center of Information Technology & Algorithms at UNLV and former Duke University faculty member. He also has the distinction of collaborating with Paul Erdos, a math genius who published nearly 1,500 papers during his lifetime. During my engagement with Dr. Bein, I performed extensive research in the areas of quantum computing and public-key cryptography. After graduating from UNLV, I began

teaching at a vocational training institute. Subjects I taught and facilitated included computer programming using C++, Java, and JavaScript. Other areas I covered included web design and data structures. This period of my professional career was arguably my most productive, because it was also during this time that I launched my private tutoring business. Almost as soon as I started my tutoring business, I began getting requests for help in almost every subject. Since we didnâ&#x20AC;&#x2122;t enough tutors onboard at the beginning, I ended up tutoring subjects I had never even studied before. However, because of my ability to quickly learn new information, I managed to successfully tutor human anatomy and physiology, chemistry, and even biology. Of course, I also tutored subjects that I am quite familiar with such as math, English, and physics. Three years into my professional career, which mostly focused on teaching, I was encouraged to gain more experience in the

corporate sector. So, I worked for Fortune 500 companies such as Dell EMC, only EMC at the time, as a data storage specialist and application developer. At this point in my professional life, I realized that these roles were not something that I was too interested in. Therefore, I began pursuing my teaching certification in order to become a classroom teacher in the U.S. public school district. Soon, I was in a classroom full of adolescents teaching them math and computer science. As I can vividly recollect, this was the time when I enjoyed working the most. After a few years of teaching in public schools in Texas, I moved back to my home country, Pakistan. Here, I completed my graduate degree program in psychology, which was offered in an online format by the University of Phoenix. While I was finishing up my graduate degree, I began teaching at the British International School of Karachi. Six years after teaching numerous subjects such as economics, psychology, and sociology, I traveled to Kuwait. During my time in Kuwait, I taught math, physics, and computers at the same school that I went to when I used to live in Kuwait back in mid 1980s. Heck, I was even reunited with my second grade teacher who still happened to be working there. A few months into my new role, I decided to explore the tutoring business in Kuwait. It would worked out quite well, and I ended up tutoring students of almost all age groups in subjects such as science and also prepared many others for standardized tests such as the SAT and GMAT (graduate management admission test). Because it was difficult for me to obtain a family visa while out there, I returned to Karachi, Pakistan after a year. After that, I

applied for a few teaching roles in China. Soon, I was approached by the Buena Vista Concordia International School in Shenzhen. They requested me to teach middle school math for their private school. My teaching career then took me to China, where I worked for about 6 months. Unfortunately, due to health reasons, I had to resign and come back to Pakistan. Fast forward about a year, during which I spent a lot of time teaching online, I also came across a Facebook Ad about the incentivized, blockchain-based social media platform, steemit. Basically, on this website you can earn digital currency for posting appealing content. So, I gave it a shot. It was during this time that I started reading, researching, and writing about cryptocurrencies. While authoring and curating content on steemit, I was approached by an experienced writer at Crypto Core Media. They asked if I would be capable and willing to write news and magazine articles for their company. I agreed to it right away. Now, I write every single day for this great organization. As a result, Iâ&#x20AC;&#x2122;ve learned a lot about cryptocurrencies and their underlying technology. In fact, Iâ&#x20AC;&#x2122;ve now authored over 135 articles. It gives me great pleasure to work with Crypto Core Media in the cryptosphere, because I feel that this is a highly innovative, promising, and exciting new field. It definitely has the potential to completely transform how not only the traditional financial sector operates, but also numerous other businesses and industries.

Blockchain News

SEC Halts Trading In Three CryptoLinked, "Penny Stock Companies"

associating themselves with crypto-related technology just so that their share prices go Three “Penny Stock Companies” up. Michele Wein Layne, Regional Director The U.S. Securities & Exchange of the SEC’s Los Angeles office, stated Commission (SEC) has suspended that investors should be particularly wary of trading in three companies due to concerns “penny stock companies that have switched about their crypto and blockchain their focus to the latest business trend, such related investments. These companies as cryptocurrency, blockchain technology, or include Cherubim Interests (CHIT), PDX initial coin offerings”. Partners (PDXP), and Victura Construction (VICT). All three of them issued press releases in January stating that they acquired CEO Of Targeted Companies thousands of trust units in the “NVC Fund”, Denies Making “False Claims” a private equity fund with crypto-related American regulators such as the SEC investments. Cherubim went a step further have the authority to halt trading for up by announcing it would be launching an to 10 days during which they may conduct ICO. their investigation. Additionally, U.S. federal regulators can stop brokerage After halting trading in these companies, the firms from engaging in activities related to SEC warned investors about businesses

SEC Suspends Trading In

Core Magazine

Blockchain News

particular stocks until specific reporting requirements have been completed. In response to this suspension, the CEO of all three companies, Patrick Johnson, confirmed that trading had been stopped until March 2nd. He then asserted that “We haven’t made any false claims about anything that we have put out”. Mr. Johnson, who’s also a former University of Oregon football player, said that he was surprised by the SEC’s actions. However, he mentioned that he would provide the SEC with any information that it asks for. SEC chairman Jay Clayton has already issued a warning to investors about businesses changing their names for the sole purpose of driving up their share prices. Mr. Clayton seems to be most concerned about fraudulent schemes being orchestrated under the guise of ICOs.

Not Easy To Contact Johnson’s Companies

CNBC attempted to contact Mr. Johnson, but was unable to get an immediate response. Phone numbers provided by PDX Partners and Victura’s official websites were out of service, according to CNBC. Strangely, Cherubim’s listed number played a machine recording for Victura while an email sent to Victura bounced back. Notably, financial data company FactSet reported that the market capitalization of each of the three companies is below $5 million, and

the value of their share prices was $0 on Friday. Cherubim Interests Inc. claims to specialize in alternative construction projects and real estate. Meanwhile, Victura, which is listed as a subsidiary of Cherubim, identifies itself as a holding company for the construction business and PDX Partners claims to be a telecom company that also makes iPhone apps.

Wildly Outrageous Claims

More than likely, SEC has targeted these companies due to their outrageous claims. For instance, Mr. Johnson said in January that his company, PDX Partners, acquired $350 million worth of assets from NVC Fund Holding Trust. NVC Fund’s portfolio includes “cryptocurrency and business financial services”. Given the extremely low market capitalization of all three of his companies, it seems highly unlikely that he would have the financial resources to make such large investments. Sooner or later, the truth will come out and what we can learn from this is that it’s always best to not buy into the hype. Instead, anyone planning to invest in crypto-related initiatives, or any business for that matter, should perform thorough research before investing. This may take up a lot of time, but it will probably be well worth it, considering it could potentially save you from losing all your money to a malicious scam. Omar Faridi omar@coregroup.info Core Magazine

MAGAZINE

Advertise with us

press@coregroup.info

SPECIAL ARTICLES

Image credit to @ediah

Stellabelle, Steemit, and Slothicorn Pave The Road To Wealth For Crypto Artists

ormally when presenting a project to a large audience there are standard formats, lines to stay inside of and rules. Donâ&#x20AC;&#x2122;t forget the rules! The usual order of business in the world of crypto is highly subjective because cryptocurrency is still relatively new. Naturally, as the industry grows, things will be continually changing, especially when the world gets to experience 52

Core Magazine

a whole new sector of business. One area of new business is specific to creative arts as related to the cryptosphere. This branch of crypto business is a mixture of several, already interesting and diverse groups. In other words, two types are not enough to accurately depict the qualities these modern people share. For the sake of

SPECIAL ARTICLES

painting a picture of who they are, let’s go with two very colorful groups containing thousands of bright minds. First there are the free thinkers, misfits and wild ones - these are the people you might bump into at a Burning Man festival. Yes, it is true- they are actually a dominant part of the soon coming new wealth, get used to seeing this type in your daily feeds, they are your colleagues and your bosses. Then, in the other diverse group there are the highly motivated, suited-up individuals who know the proper way to cite sources and often have a diploma on their office door (or cubicle). This is a group who still understands the artist’s sub-culture within the crypto space. They are the business minded entrepreneurs who lead the way in terms of innovating and creating blockchain relevant tools or projects and they truly enjoy their misfit colleagues and they might even make an appearance at the Burning Man festival. albeit, in casual office clothes. Leah Stella Stevens, the Author of Uncrap Your Life is a pioneering mind who created a persona that has rapidly risen to the status of underground celebrity, as her alter ego- a beloved creature known by her pseudonym, Stellabelle. Stellabelle is a captivating woman whose fans are dutifully committed to her array of works in progress. Stellabelle was born within Steemit, the intricate, blockchainbased creative content platform that pays media creators and their active audience members. Stellabelle has created several projects, and

her sphere of influence is enormous. Luckily, I was able to stop her for a few moments to get some juicy details regarding the Slothicorn phenomenon and the seductive secret that keeps us salivating, ironically. Read on to understand.

The Interview Questions & Answers | A session with the queen of the “hot artsy chicks” and a respected female amongst the world’s most brilliant men and women, .

to you, Stellabelle

I introduce

What is your name? (Real Name - if you are comfortable sharing this with our audience.) My name is Leah Stella Stevens When asked by a stranger in small talk “what do you do for a living?” What is the answer? I usually say I’m an entrepreneur. Sometimes I say I’m a writer/artist. It all depends on who is asking me. Now, I’m free to say “I am Slothicorn”. LOL. Name your most recent projects, briefly. At the beginning, Slothicorn was solely a Creative Commons Cryptoart collective. Because we were Creative Commons, our motto has been “Slothicorn belongs to everyone and no one.” I also created the Secret Writer Project, which was launched on Steemit last year. People sent me their deepest, darkest secrets which I copy edited and added images to. It was a fun and voyeuristic project which I loved doing. I split the Steem rewards with the Core Magazine

SPECIAL ARTICLES

secret givers. Right now I am mostly focused on solving the problem: how can talented artists use blockchain to earn money, so they can become financially independent? I’m thinking of building a similar community on the EOS platform, but I am in the idea phase only of this. Networking and finding others who are passionate about solving problems for artists is my priority now. How do you define Slothicorn, the creature? Slothicorn is half sloth, half unicorn. The sloth part is humanity, in all its vulnerabilities. The unicorn part represents blockchain technology. And since the creator of Bitcoin, the first blockchain innovation, released the invention as open source, I wanted to follow in that direction and make our group Creative Commons. Having our work released as Creative Commons actually forms more social bonds within our group, as this allows us to share our gifts more easily, without friction. However, after some thought, Slothicorn is changing a bit to let artists decide which license to use. This means we will start supporting both full rights and Creative Commons. What symbolism or significance is behind the mythical animal-hybrid? I did not originate the idea of a ‘slothicorn’. I found it as a new creature on the internet, as I believe an artist came up with it. I still don’t know who created the first one. Unicorns are known for their ability to transform a dull place into one full of unexpected surprises. I believe humanity is still in a sloth-like mental state, meaning, our minds have not been activated to achieve great things. This is because most of humanity exists in a state of suffering. Our creativity gene lies mostly 54

Core Magazine

dormant inside us. This is partly because of poverty, conditioning, our current system of commodification, and our decaying culture which exalts vapidity over intelligence. Most of us have not been encouraged to use our imaginations to guide us through life. I follow my visions which guide me towards actions, and this is a skill I’ve been developing for many years now. I only do things I feel are guided in this manner and I only work with people I respect and trust. This creates a happy life. Tell us more about the phenomenon that Is named after Slothicorn. Would you call it a movement or a group? I think of it as a movement because anyone is free to create their own Slothicorn group anywhere, and on any platform. I intentionally made it cute to attract all people, including the youth. But it is quite fierce in its intention and philosophy (the razor sharp claws signify this fierceness and determination). Our Creative Commons license allows other groups to use our art for their projects. The Slothicorn collective makes it possible to freely work with others, get help, find people who want to collaborate, no matter what country one lives in. It’s definitely more of a philosophy than anything else. A Slothicorn collective could be formed around any type of project, like writing, science, etc. Slothicorn is synonymous with sharing and collaboration between the earth’s people. About other projects: What would you like to share with the readers? Perhaps the Steve and Stella show? The Steve And Stella show is a fun video series on DTube. I love to collaborate with others and I found the work of Steven

SPECIAL ARTICLES

Alexander on YouTube to be the kind of absurd thing I really love. I saw raw talent in Steven, and we decided rather spontaneously to create a show together. He and I share a love for the absurd, and we want to push the limits of DTube.....The Tim and Eric Show is our guide, and we want to develop something like that. We both love absurdity and comedy, the far-out stuff. Ok. Confession time- if you are willing to divulge a fact for the audience, What juicy secrets do you have? All my secrets are contained in my book, Un-Crap Your Life: Navigating Life’s Crappiest Situations. Shameless plug. But it’s true, when I wrote this book in 2015, I reviewed everything I was ashamed of, or messed up, all my ‘dark secrets’, and I decided to just unlock the door of my intestines, and let the world see it. It released me from my neurotic tendency to hide my flaws..... Ok here’s something which people might find strange: I have been practicing celibacy for 8 years. This has led me to a deeper understanding of life and how my mind works. It’s safe to say I am close to mastering my demons, all of them. I feel that this celibacy phase must come to an end though, as I have already missed the Pon Farr cycle, which the Vulcans practiced: “Every seven years, Vulcan males and females become aroused. They undergo a blood fever, become violent, and finally die unless they mate with someone with whom they are emphatically bonded or engage in a ritual battle known as kal-if-fee.” What is your current relationship status (a popular question by my peers who are in love with you)?

I’m interested in someone but in friend mode because I am not good at relationships, and never have been.....this is a sore spot..... A candid Intermission: Lorilikes from CryptoCoreMedia.com: *Side note: Stella! Do you realize that you are a distinctly known role model and a source of many new ideas for me? Carl Gnash was the one who first people who introduced me to the universe that is YOU. I tend to resist the flow of popular thinking so I was certain I would not be impressedsince everyone else WAS impressed by you. I thought “How great could she actually be? What is all the fuss?” This position of mine was quickly, and easily dissolved and replaced by an affectionate purr- because… You rock! You really do, I am a huge fan and I am sort of star-struck. You are a genius- obviously. Thank you for your kindness and your bold, bare all style of inspiring the masses. Stellabelle’s Reply: Wow, I had no idea about Carl Gnash (or people) being impressed by me. Sometimes, it makes me feel uncomfortable, because I am just being myself, without thought of how I could influence others. I believe this all has to do with the fact that I have been a creator for most of my adult life, but have been largely marginalized in the shadows. I found YouTube in the early days, and have been creating videos for more than ten years, but because I’m not into ‘branding’, I never achieved great success on that platform. I am an experimentalist, and I use different tools, different technologies constantly. My experimental nature has never properly been branded, and this is why my friends who Core Magazine

SPECIAL ARTICLES

know me well call me a “Thought Leader”, as I am constantly learning new things, utilizing my innate creativity, and sharing this stuff with people. My writing career began fairly late, as I was hired by a startup company in 2013 as a writer.....before then, I never considered writing as my strong point. I was doing visual art for most of life. What can you say to your audience regarding the future of Steemit? Any additional thoughts? I’m very critical of people, especially those in power, so everyone should take this all with a grain of salt. I see a lot of immaturity at the top of the food chain. But anything is possible, and Steemit could succeed, it’s true because communities are coming, and this could be the feature that makes it wildly successful. I’m hopeful. Plus, Steemit works. We have digital wallets and can send our friends in Nigeria 5 SBD in three seconds with zero transaction fees. This is a valuable thing that sometimes I forget about. But quite frankly, I have poured in almost two years of work into Steem, building up communities, and helping it grow. Many people say they found an article of mine on Steemit, and joined because of me. I have no idea the numbers, but I think it’s a lot. I’m cautiously optimistic about Steem, and feel that DTube could actually become the dominant app on the Steem blockchain. It’s growing in a viral way because YouTube just demonetized a lot of YouTubers, including myself ! I didn’t make a huge amount of money from YouTube, maybe around $1000 in total, but I just got the email from YouTube that my channel is being de-monetized because I don’t have 56

Core Magazine

enough subscribers. It left a bitter taste in my mouth. DTube will capture all these people who have been dissed by YouTube. How about the future of Slothicorn? Slothicorn has a bright future. It might take a different form, or become its own coin, who knows? My project is still very new and is in its growing pains stage. I really would love to partner up with a CTO or programmer in the near future.

“Stella is an incredible human, and a force to be reckoned with. I was attracted to her inspired articles a long while ago, but had no clue that she was an artist and professional eccentric, as well. She reminds me of a nebula that births to ideas and that energy seems to ignite, also, into everyone around her!”

Pseudonym @inquiringtimes

Thank you Leah Stella Stevens! Keep doing what you are doing. With love, Just Another Fan, Lorilikes, Core Group.

We also speak Spanish

Blockchain News

FCC Threatens Arrest, Hardware Seizure of Bitcoin Miner for Causing Harmful Interference

he U.S. Federal Communications Commission (FCC) recently revealed that a piece of popular bitcoin mining hardware was interfering with the internet connections of Brooklyn 58

Core Magazine

residents. The organization decided to take action. In a notice, it threatened to arrest the bitcoin miner and seize his hardware. Telecom giant T-Mobile had complained to

Blockchain News

the FCC about interference to its 700 MHz LTE network in Brooklyn, being caused by radio emissions. The FCC’s investigation used detection-finding devices to locate the offending equipment, an Antminer S5. Per the FCC, the piece of hardware was generating “spurious emissions on frequencies assigned to T-Mobile’s broadband network”. These, in turn, caused “harmful interferences”. As such, the agency’s enforcement bureau made things clear to the Bitcoin miner. David Dombrowsky, of enforcement bureau, wrote:

the

FCC’s

“Continued operation of this device that causes harmful interference after your receipt of this warning constitutes a violation of the Federal laws cited above and could subject the operator to severe penalties, including, but not limited to, substantial monetary fines, in rem arrest action to seize the offending radio.”

on the device’s purchase, reveal the steps it intends to take to solve the issue, and provide additional information on the Antminer. On Twitter, FCC Commissioner Jessica Rosenworcel said the case “seems so very 2018” because of what it involves.

Bitcoin miner using outdated hardware Notably, the Antminer S5 is now a somewhat old piece of hardware. It is unknown if newer bitcoin mining hardware has the same problem, or if the Antminer S5 used in this case was in any way altered. Bitmain released their Antminer S5 back in 2014. At the time, it was one of the fastest and most efficient ASIC miners available on the market, but it has since been surpassed. At press time, Bitmain’s most advanced bitcoin mining hardware is the Antminer S9. As covered by Core Media, even South Korean tech giant Samsung is looking to get in on the crypto mining business. According to reports, the company is set to start manufacturing ASIC chips designed for cryptocurrency mining. Francisco Memoria franciscom@coregroup.info

The Bitcoin miner was given 20 days to reply to the FCC’s notice. In the reply, the miner needs to provide a receipt and information Core Magazine

Blockchain News

FINMA, the Swiss Regulator, Releases New Cryptocurrency Regulations

FINMA Introduces New Regulations For Its Crypto Industry 60

Core Magazine

Switzerlandâ&#x20AC;&#x2122;s regulatory authority introduced a new set of cryptocurrency regulations on Friday. Notably, the Swiss Financial Market Supervisory Authority (FINMA) has classified the crypto regulations into

Blockchain News

three broad categories. The categories are: “asset tokens”, “payment tokens”, and “utility tokens”. Presumably, they’ve been put together based on the findings of various entities in the Swiss Confederation that had been actively working on developing a regulatory framework for digital currencies. According to FINMA, asset tokens can be thought of as crypto’s version of stocks and bonds where the tokens represent “assets such as participations in real physical underlying, companies, or earnings streams, or an entitlement to dividends or interest payment”. Payment tokens are defined by the Swiss watchdog as the actual cryptocurrency, which can function as a store of value and a medium of exchange. Per FINMA, digital tokens are “intended to provide digital access to an application or service”.

A Balanced Approach Crypto-Regulations

The Swiss regulator stated that main goal of this new framework is to adopt a more “balanced approach” in which the financial risks of ICOs are mitigated, while not hampering their “innovative potential”. Although the obvious risk factor associated with ICOs is the extreme volatility of the cryptocurrency market, a large number of scams have also been carried out, resulting in huge financial losses for the unsuspecting investors. In addition to ICO scams, FINMA is also aware of cryptocurrencies widely being used for illegal purposes such as money laundering. In fact, as Core Media reported, up to £4 Billion has been laundered throughout

Europe using digital currencies such as Bitcoin. Even though this only constitutes an estimated 3-4% of Europe’s black money market, the use of cryptos in aiding illicit activities has been growing rapidly. Therefore, FINMA and other regulatory bodies around the world have committed themselves to curb this alarming trend.

FINMA’s Crypto-Regulations Will Help Financial Markets

Although the Swiss watchdog has vowed to stop criminals from using cryptos to conduct illegal activities, it’s not the only objective behind its new crypto regulations. Notably, the Financial Times reports that the nation’s regulator intends to offer practical support to further develop Switzerland’s booming ICO market and emerging blockchain technologies. With its updated crypto guidelines, FINMA seeks to clarify which set of laws a business needs to follow when dealing with crypto-related securities, or making sure its in compliance with antimoney laundering rules. Johann Schneider-Ammann, the Swiss finance minister, believes that the country should continue to maintain a cryptofriendly approach. In fact, he stated last month that he’d like Switzerland to become “the crypto nation”. It seems that his country is well on its way to become a leader in the cryptosphere when you consider that 4 out of the 10 largest ICOs launched so far have originated in the world’s most “neutral” place. Francisco Memoria franciscom@coregroup.info Core Magazine

Blockchain News

Atari Reveals It Will Create Its Own Cryptocurrency, Shares Jump to 5-Year High

tari is a well-known company among gamers. It’s perhaps best known for some its successful titles, including “Pac-Man” and “Space Invaders”. The company, according to Bloomberg, is now jumping on the cryptocurrency bandwagon, as it will even create its own cryptocurrency, the “Atari Token.” 62

Core Magazine

The Paris-based company reportedly purchased a stake in a company that’s creating a blockchain-based digital entertainment platform. According to Boursier, said company is Infinity Networks, Ltd. Its platform is set to provide users access to various forms of entertainment, including video games, movies, and music. As part of the agreement Atari signed with

Blockchain News

Infinity Networks Ltd, it’s set to create its own cryptocurrency, the Atari Token. The token will likely become the native currency of the blockchain-based platform, so as to bolster adoption.

In light of Atari’s move into the cryptocurrency industry, its shares jumped to a 5-year high, coming close to €1 per share, up from little over €0.4 since the beginning of the year.

Not only that, Atari also expanded its partnership with online casino-gaming company Pariplay Ltd, so as to allow gambling with digital currencies. This will allow the PariPlay’s users to not only gamble with fiat currencies, but also with “most cryptocurrencies”. To broaden the appeal of these online casinos, Atari will launch a “pong token”, dedicated to them.

Benefiting from cryptocurrency ‘craze’

Atari’s chairman and chief executive officer, Frederic Chesnais, stated:

“Blockchain technology is poised to take a very important place in our environment and to transform, if not revolutionize, the current economic ecosystem, especially in the areas of the video game industry and online transactions. Our aim is to take strategic positions with a limited cash risk, in order to best create value with the assets and the Atari brand.”

the

Atari is notably not the only company that saw its shares surge after announcing a move into the cryptocurrency space. As covered by Core Media, American photography titan Kodak recently entered the crypto world by announcing its own cryptocurrency dubbed “KodakCoin.” After announcing the move, its shares jumped. Another company, Long Island Iced Tea Corp, saw its shares skyrocket by 200% after claiming it was changing its name to Long Blockchain Corp. RenRen, a Chinese social media platform, witnessed a 50% growth in the value of its shares after revealing it was launching an ICO. Some critics use these companies as examples to claim that Bitcoin is in a bubble. Notably, whenever any company announces that it’s branching into the cryptosphere, it usually manages to attract numerous investors. Francisco Memoria franciscom@coregroup.info

Core Magazine

Blockchain News

It's "Disgusting" People Buy Bitcoin, Says Warren Buffett's Investment Chief

erkshire Hathaway’s vice chairman Charlie Munger recently weighed in on the bitcoin ‘craze’, and shared that he sees the flagship cryptocurrency as “noxious poison”. Munger, while speaking 66

Core Magazine

at an annual general meeting of the Daily Journal Corporation, revealed that he believes it’s “disgusting” people buy the cryptocurrency.

Blockchain News

When asked about his thoughts on the ongoing ‘bitcoin craze’, Munger, 94, said that it should be met with a government crackdown as the government’s “lax approach” to it is wrong. Per the investment chief, the right answer to something like this is to “step on it hard”. Munger further revealed he was never a fan of Bitcoin or other cryptocurrencies. In fact, his words may make him one of the most outspoken cryptocurrency naysayers. He stated: “I never considered for one second having anything to do with it. I detested it the moment it was raised. It’s just disgusting. Bitcoin is noxious poison.” His words come at a time in which bitcoin is once again getting close to the $10,000 mark. The flagship cryptocurrency fell from nearly a $20,000 all-time high to little over $6,000 in the last few months. At press time, it is trading at $9,727. Munger’s approach surpasses that of Berkshire Hathaway CEO and legendary investor Warren Buffett, who said cryptocurrencies are “almost certainly” going to come to a bad ending. Buffett had in the past also stated bitcoin is a “real bubble”.

his response by revealing he doesn’t know anything about cryptocurrencies.

Other notable bitcoin critics Recently Bitcoin has been criticized by various well-known personalities in the financial world. These include Nobel laureates like Robert Shiller, and central bankers like Canada’s central bank chief who said bitcoin trading is “gambling,” and called for regulations. Another well-known bitcoin critic is JP Morgan’s chief executive officer Jamie Dimon. Last year, Dimon said bitcoin was a “fraud”, which might have contributed to the market correction at that time. Once signs emerged that JP Morgan took advantage of the dip, reportedly on behalf of his clients, a market abuse report was filed against him. Earlier this year, Jamie Dimon revealed he regrets calling the currency a fraud, although he added that he still isn’t interested in the cryptocurrency space. Francisco Memoria franciscom@coregroup.info

Notably, when Buffett was asked whether he would consider opening a position to short the cryptocurrency, he said he wouldn’t do it as there’s no reason to do so. He justified Core Magazine

SPECIAL ARTICLES

Core Magazine

https://www.komodoplatform.com

Blockchain News

Investors Are Flipping Telegram ICO Tokens, Although Sale

Isn't yet Public

arlier this year, popular messaging app Telegram revealed it was plotting a record-setting initial coin offering (ICO). The company is set to raise a whopping $1.2 billion through the sale of its GRAM tokens, and some investors are 70

Core Magazine

already flipping the Telegram ICO tokens they bought for millions, although the sale isnâ&#x20AC;&#x2122;t yet public. Telegramâ&#x20AC;&#x2122;s GRAM tokens are set to be a native currency to the Telegram Open Network (TON), which will be integrated

Blockchain News

into the Telegram platform. Telegram itself is expected to reach 200 million users in the first quarter of this year. These numbers, by themselves, are attracting investors. The token sale is split into two parts. The first is a private sale to institutional investors, where GRAM tokens can be purchased for $0.3 each. The round is aiming to raise $600 million and will finish at the end of this month. Reportedly, venture capital firms that backed Google and Uber already bought tokens. The public token sale will begin in March, and will bring in another $600 million. According to Quartz, investors who got in on the private sale are already flipping their GRAM tokens for twice what they paid. These are selling large blocks for millions of dollars, as a tranche of 5.3 million GRAM tokens was going for $0.6 per token. Another, Quartz states, was at $0.57 per token. This, according to an email Quartz had access to. In it, a broker to a firm explained the sellers were invested in the ICO, but wanted to sell part of their allocations. The email read:

Telegram ICO tokens undesirable for crypto investors While big-name venture capital firms are seemingly going nuts for Telegram ICO tokens, old-school crypto investors may not want them at all. Several well-known investors reportedly revealed they aren’t investing because of the project’s incredible ambition and the token’s price. Civic CEO and Gyft co-founder Vinny Lingham stated that it was raising too much money for a small team, of only 15 individuals. He added that the project’s deadlines are seemingly too tight as well . As Quartz points out, not a single line of the Telegram Open Network has yet been written. As such, doubling the token’s price may not be prudent at this point. The project aims to offer micropayments within Telegram, distributed file sharing, and more. The TON wallet is set to become the world’s “most adopted” crypto wallet, according to the company.

“The [sellers] are oversubscribed and will allocate this on a first-come, first-served, basis as most wires have As recently reported by Core Media, hackers already been coming in. We need to get used a zero-day exploit in Telegram to infect users with cryptocurrency mining malware. the buyer on the phone with the seller today. The seller will only speak to the Francisco Memoria actual buyer. A deposit must be wired franciscom@coregroup.info or proof of wire as soon as possible.”

Core Magazine

Blockchain News

Crypt-UK Formed By Leading Crypto Companies To Promote Best Practice

CryptoUK Established To Improve Crypto Industry Standards Seven prominent cryptocurrency companies

UK-based have come

together to begin formulating self-regulatory standards through CryptoUK, an official trade association. Founding members of CryptoUK include Blockex, CEX.io, Coinbase, Coinshares, Commerceblock, CryptoCompare, and eToro. The stated Core Magazine

Blockchain News

main objective of this diverse trade body is “to improve industry standards and engage policymakers”. Iqbal V Gandham, Managing Director of eToro social trading company, explained that the organization’s goal will be to work cooperatively with governmental agencies and regulators “to promote best practice”. Ideally, Mr. Gandham would like this selfgoverning trade body to propose a practical roadmap and blueprint that will help the crypto-community develop a comprehensive regulatory framework. Meanwhile, Zeeshan Feroz, CEO (UK) Coinbase, remarked that CryptoUK intends to open up the communication channels between the crypto industry and the government’s regulatory bodies. Per the Coinbase executive, regulation is not only “imminent” but also a “good thing”.

Proposed Crypto “Code of Conduct”

Judging from their detailed Code of Conduct, it seems that the founding members of CryptoUK have put in considerable time and effort to write up these precise and pertinent guiding principles. Notably, the Code of Conduct (CoC) stresses the need for transparency in the crypto industry and “a supportive operating environment”.The CoC also mentions that the UK needs to create proper regulations to “ensure consumer safety” and curb crypto-related crime. This CoC has been proposed at a time when the crypto-industry is “severely misunderstood” by regulatory authorities and other mainstream organizations because 74

Core Magazine

they lack sufficient knowledge of this domain. In fact, that’s why CryptoUK was established, according to Mr. Gandham. With this bold initiative, the eToro director hopes that this organization will be able to help increase understanding and awareness, particularly amongst governmental entities, about crypto-technology.

Trying To Bring Regulators To The

Other Table

The CryptoUK group, which aims to be a self-regulatory body, would like other UK regulators such as the Financial Conduct Authority to come onboard and assist them in improving the overall standards of the country’s crypto sector. Presently, the country’s Treasury department is working on amending its anti-money laundering rules to include cryptocurrencies. It’s possible that the Treasury could work alongside the CryptoUK group to try and prevent such illicit activities in the future.

Presently, the UK’s first such group does not cover ICOs. This might be one of the more obvious weaknesses of this group, because numerous scams have been orchestrated under the guise of ICOs. Nevertheless, the formation of this group is a step in the right direction because of the transparency and accountability that it intends to promote. Clearly, the cryptomarket could benefit from such measures given the rise of crypto-related crime. Omar Faridi omar@coregroup.info

Blockchain News

Thai Bank Blocks Local Cryptocurrency Exchangeâ&#x20AC;&#x2122;s Transactions Citing Missing Documents

major bank in Thailand, Bangkok Bank, recently blocked transactions going through the account of a local cryptocurrency exchange, the Thai Digital Asset Exchange (TDAX). The reason behind the move was seemingly missing documents, according to local news outlet the Bangkok

Post. The news outlet details that this made Bangkok Bank the first financial institution in the country to halt transactions involving cryptocurrency trading. A source close to the issue at the Bangkok Bank revealed that Core Magazine

Blockchain News

TDAX opened a savings account there, but that a few documents were missing. As such, the bank’s response was to “block all transactions through the account”. To justify its move, the bank cited an announcement the country’s central bank issued last week, urging financial institutions not to get involved in five different cryptocurrencyrelated activities. None of which, however, involves opening accounts for crypto exchanges. TDAX’s chief executive officer (CEO), Poramin Insom, revealed that the company was seemingly sought out by the bank. He stated:

“The bank called and asked whether there was an operating licence for proof, but I answered that this business was not under legal jurisdiction, so the bank said it would terminate the company’s bank account, as this business had no licence.” Since its transactions were blocked, TDAX decided to close its account with Bangkok Bank. It further added that the bank has no mandate to force customers to open or close an account with it.

Thai exchange’s unaffected

trading

TDAX is a major Thai cryptocurrency exchange. It reportedly has 5.5 million baht ($175,000) worth of registered capital, and plans to add more to apply for an initial coin 76

Core Magazine

offering (ICO) license with the country’s Securities and Exchange Commission (SEC). Despite losing its account at the Bangkok Bank, its CEO Insom noted that traders could still trade bitcoin and 10 other different cryptocurrencies using its platform. He noted that TDAX still has an account with three other banks. These are Kasikornbank (KBank), Krungthai Bank, and Siam Commercial Bank. Kbank, another major Thai bank, revealed it still works withTDAX.A spokesperson stated:

“The bank is still facilitating TDAX financial transactions through its account after the bank discussed the matter with the central bank and found that such an account is not regarded as supporting customers in making virtual currency transactions.” Featured image from DepositPhotos. Francisco Memoria franciscom@coregroup.info

Blockchain News

Core Magazine

Blockchain News

Poloniex Staff Denies Hack Rumors, Points to Phished Credentials

t a time in which the cryptocurrency community focuses on regulatory developments and Binance’s unforeseen slowdown, rumors Poloniex got hacked started spreading on Twitter. According to these rumors, the exchange’s passwords weren’t properly secured, and were stored as plain text. A Poloniex staff member took to social media to set things straight. The rumors included an image that showed various email addresses and their passwords right next to them. Various Twitter users claimed to have tried these out and gotten access to their accounts, or a two-factor authentication (2FA) prompt. At press time, most tweets about the leak have been deleted. In light of these rumors a C-level executive 80

Core Magazine

at Poloniex, MickD, pointed out that the exchange wasn’t hacked. According to him, the leaked credentials were harvested from phishing websites.

One of the individuals who tweeted out the rumor was the technical director of Metrix Cloud and ethical hacker Jamie Woodruff. Although his tweet is no longer available, he has since revealed that a Poloniex staff member reached out to him to make things

Blockchain News

clear.

It’s entirely possible the database consisted of phished Poloniex users. As reported by Core Media, even fake Poloniex trading apps have in the past made their way to Google’s Play Store.

Poloniex staff on how phishing scams work

The exchange’s C-level staff member then decided to shed some light on how phishing scams work, so users can spot one when the time comes. As MickD explains, malicious actors first create a phishing app or website, similar to that of the cryptocurrency

exchange. Then they try to get users to enter their login credentials. Then, they take them to a page that asks them to wait a specific amount of time, while the malicious actors try their credentials to see if they work. If the credentials work on both the exchange and their email account, they’ll essentially steal everything they can. This includes the victim’s identity if any personal documents are contained within the breached email account. To prevent this, users need to never reuse login credentials, use 2FA to protect their accounts, and avoid leaving identifiable information on their emails. Although cryptocurrency exchanges often get hacked, a lot of users lose money on them because they fail to adopt these security measures. Francisco Memoria franciscom@coregroup.info

BLOCKCHAIN

NEWS

MAGAZINE

Are you about to prepare an ICO? Contact us press@coregroup.info Core Magazine

SPECIAL ARTICLES

Bank Of America Feels Threatened By Cryptocurrencies

Bank Of America Is Wary Of Cryptos

Bank of America stated in its annual report that cryptocurrencies pose a threat to its business operations. That’s because its clients might start dealing with

cryptocurrencies”, according to the bank. Furthermore, the large financial institution, which currently ranks 2nd on the list of largest banks in the United States in terms of total assets, says that its revenue could be “negatively”

“other market participants...who due to competition from the crypto engage in business...in areas we deem speculative or risky, such as industry.

Core Magazine

SPECIAL ARTICLES

The bank is also concerned that its existing clients might take their business elsewhere, because it might not be able to offer them the crypto-related services they’re looking for. These statements from Bank of America were included in a 10-K filing submitted to the U.S. Securities & Exchange Commission (SEC). Moreover, the detailed report covered the bank’s various business operations and their associated risks.

Concerns About Embracing Change

Although Bank of America didn’t provide additional comments regarding their concerns about digital currencies, its extensive report did mention that, “Emerging technologies, such as cryptocurrencies, could limit our ability to track the movement of funds”. Additionally, the dominant financial institution expressed concerns that mainstream adoption of digital currencies could force it to make significant adjustments to its current business model. This would be necessary because the emerging cryptomarket might introduce new market standards and greater variations in consumer behavior, according to the firm. In order to adapt to these imminent changes and remain a major player in the investment banking market, Bank of America believes that it will have to bear “substantial expenditures”. Presumably in an effort to avoid additional operating costs, the company has put up a fair amount of resistance when it comes to emerging technologies such as cryptocurrencies. Notably, Merrill Lynch, the bank’s wealth management division, ordered its financial advisors not to provide bitcoin-

related investment services. Furthermore, the bank has also prevented its credit cards from being used buy cryptocurrencies.

Conducting Research Blockchain Technology

While not taking a crypto-friendly approach, Bank of America, along with other financial institutions, has been actively researching blockchain technology. In fact, it has registered over 70 patents related to blockchain-based solutions for online wallets, identity/credentials verification, and various other banking procedures. The acquisition of these patents has been confirmed through an official email by the bank’s SVP for Corporate Communications, Mark Pipitone. Financial institutions are not alone in taking a keen interest in distributed ledger technology. Given its potential to be applied in numerous business practices and industries, even the education sector has been developing blockchain-enabled services. One particular company, BitDegree, attempts to offer what it calls the first free “blockchain-powered online education platform”. Not only is it free to learn, but you also get rewarded for it with BitDegree’s BDG token. Based on these developments, it seems that cryptocurrencies and their underlying blockchain could drastically change how organizations work. It could also just be a matter of time that Bank of America decides to change its stance on digital currencies. Omar Faridi omar@coregroup.info Core Magazine

Blockchain News

CoinDash ICO Hacker Mysteriously Keeps Returning Stolen ETH

ack in July, the cryptocurrency space took a hit. CoinDashâ&#x20AC;&#x2122;s hyped ICO was hacked, as someone tampered the companyâ&#x20AC;&#x2122;s website and changed the official address to one he controlled. The hacker behind the attack is now mysteriously

returning the funds, as blockchain data shows he sent CoinDash 20,000 ETH. At the time of the hack, although CoinDash quickly started warning investors something was off, the hacker still managed to net roughly Core Magazine

Blockchain News

$9.2 million. The criminal then proceeded to cash out 488 Ethereum through Shapeshift and, mysteriously enough, sent 10,000 ETH back to CoinDash a mere 5 days later. The hacker’s address has laid dormant since, until now. Yesterday, the hacker sent another 20,000 ETH to CoinDash. Taking into account that Ethereum is currently trading at $813, the hacker sent the company, in total, little under $25 million in Ether. In response to the hacker’s move, the company revealed that it will still launch its product on February 27, as scheduled. Alon Muroch, the company’s CEO, stated:

“Similar to the hack itself, the hacker’s actions will not prevent us from the realizing our vision, CoinDash product launch will take place next week as originally intended”. CoinDash further revealed that it notified the counter Cyber Terrorist Unit in Israel. Moreover, it will continue to monitor the hacker’s Ethereum address (Fake_CoinDash) in case any other suspicious activity helps find the criminal.

Was the CoinDash hack an inside job? In July, various Redditors claimed the hack could have been an inside job. The

Core Magazine

hacker returning most of the funds it stole is certainly suspicious, and may fuel these claims. CoinDash now has roughly 40,000 ETH in its coffers, nearly what it initially set out to get in its ICO. Taking into account Ethereum’s current value, the team surpassed what it was after in the token sale. The hacker’s moved helped CoinDash’s CDT token surge to $0.09 per token, up from $0.085. At the time of the hack, in response to the occurrence, the company reimbursed investors who sent the hacker Ether through a specific amount of CDT tokens. CoinDash’s ICO is just one of many that saw investors lose money. As covered by Core Media, cryptocurrency startup LoopX vanished after raising $4.5 million in its ICO, in a move similar to one pulled of by Prodeum. Francisco Memoria franciscom@coregroup.info

Blockchain News

Cardano Plans To Solve Problems Plaguing Major Cryptocurrencies

Cardano Platform

Cryptocurrency

Cardano (ADA) is currently the 6th largest crypto-platform with a market capitalization of almost $8.5 billion (CoinMarketCap). Its ADA token is presently trading at around $0.33 (at the time of this writing). These numbers are down considerably since we last covered Cardano, here at Core Media, back in early January 2018. The reason for its price drop can be attributed mainly to a larger dip in the overall cryptocurrency market. After surging to record-level highs in midDecember 2017, when we saw Bitcoin reach an all-time high of nearly $20,000, the crypto-market’s aggregate value is down from over $800 billion to just over $400 billion. That’s about a 50% drop. However,

the key thing to note here is not the price.

Focus Should Be On Improving Crypto-Technology

As Ethereum co-founder Vitalik Buterin recently pointed out that the digital currency market could drop to a “near-zero” level, the primary focus of the crypto-community should be on learning more about this nascent technology, and how everyone can help to improve it. This is precisely what the developers of Cardano are attempting to do. Most crypto watchers are well-aware of Bitcoin’s scalability problem, which not only limits the number of transactions its network can process at a given time, but also slows them down quite a bit. Not only have BTC transactions been reported to Core Magazine

Blockchain News

take a long time to confirm, they’re also very expensive. These issues are primarily the result of Bitcoin’s protocol limitations, coupled with soaring demand. On the other hand, the Ethereum network is comparatively more flexible, but it’s neither adequately safe nor practically scalable according to lead Ethereum developer Vlad Zamfir.

We also present a novel reward mechanism for incentivizing Proof of Stake protocols and we prove that, given this mechanism, honest behavior is an approximate Nash Equilibrium, thus neutralizing attacks such as selfish mining. We also present initial evidence of the practicality of our Cardano Claims To Offer protocol in real world settings by providing experimental results A Better Solution Many new startups have claimed on transaction confirmation and that their cryptocurrency processing”.

network will be superior to that of the leading crypto-platforms. Cardano happens to be among one of these emerging startup companies. Notably, Cardano’s developers assert that its source code, which is written using the purely functional Haskell programming language, is much more secure. Per Cardano’s developers, another unique approach, which sets it apart from other crypto-platforms, is that it’s backed up by peerreviewed academic research. Moreover, Cardano’s programmers say that it is faster and more scalable than its competitors, because it is implemented using the Ouroboros proof-of-stake blockchain protocol. The Abstract describing Ouroboros reads:

“it offers qualitative efficiency advantages over blockchains based on proof of physical resources (e.g., proof of work).

Core Magazine

Now, let’s break this down. Nash equilibrium, which is named after American mathematician John Forbes Nash Jr., is a central concept of game theory and economics. A system is said to be in Nash equilibrium, in this case the Cardano network, if none of the network participants (aka nodes/ entities) have an “incentive to deviate from their ‘chosen strategy’” after examining the current state of the network and the behavior of other participants.

Selfish & Harmful Behavior Is Neutralized

Basically, this just means that entities on Cardano’s blockchain are less likely, as compared to other blockchain platforms, to engage in behavior which isn’t in the best interests of everyone on the network, such as “selfish mining”.

Blockchain News

The creators of Cardano also aim to make it “prohibitively expensive” for malicious nodes to launch DDoS (distributed denial of service) attacks, which clog the network by spamming it with thousands of transactions.

“[people] kinda saw the vision, which was this idea of a third generation cryptocurrency, and all this things that we’ve set up, the research team that we set up, this enormous team we’ve put In addition to making the Cardano together. They saw the code, they saw all platform more secure and scalable, its the progress” development team intends for it offer more interoperability through its Daedalus wallet, which will allow different cryptocurrencies to be exchanged. Another noteworthy design feature that Cardano’s team wants to offer is long-term sustainability by establishing a cryptocoin treasury that would be used to finance long-term initiatives.

The Architects Of Cardano

When researching cryptocurrencies and their underlying technology, one of the main things to look for, or consider, is the credentials and reputation of its architects. It appears that Cardano’s team has a solid background, especially when reviewing the profile and experience of Charles Hoskinson, their main developer. Hoskinson was a student of Analytic Number Theory at Denver’s Metropolitan State University and University of Colorado at Boulder. Although he did not complete his studies, Hoskinson went on to become the co-founder of Ethereum. His current crypto-related activities include spreading knowledge and awareness about cryptocurrencies and blockchain technology by speaking to audiences, as he travels around the globe. He says that Cardano’s creators did not really do any marketing to promote their platform, and recalls that when Cardano first started trading on Bittrex,

Third-Generation Cryptographic Currency

When discussing Bitcoin and Ethereum, Hoskinson refers to them as 1st and 2nd generation cryptographic currencies, respectively. He goes on to explain that the creators of Bitcoin and Ethereum had introduced a brand new concept and technology to the world. There had never been anything like it before. Therefore, it wasn’t possible for the architects of these cryptos to fully anticipate the various problems in their design. Now, apparently, Hoskinson says that Cardano’s developers have learned from the mistakes of older digital currencies, and have built “every component” of their platform “from scratch”. There seems to be some credibility behind Hoskinson’s words. That’s because, according to Cryptomismo, a website that monitors and keeps track of the number of times a crypto’s source code has been updated (Github Commits), reveals that Cardano comes in second in terms of being the “most active” crypto-project.

Concerns Regarding Cardano’s Ambitious Project

It would be beyond the scope of one article to delve into every single aspect of Cardano’s Core Magazine

Blockchain News

extensive project. This also happens to be one of the primary concerns regarding its development. Hoskinson explains:

“We’re starting very far behind everybody...A lot of the work that we did in 2016 and all throughout 2017 and we’re still doing now is about building up to a point where we catch up completely with all of our competitors. The difference between us and a lot of our competitors, is that every time we get involved in something, we write a paper. And the people reviewing these things are cryptographers, experts from universities such as Cornell”. Since Cardano’s approach to developing their platform is very time-consuming, it could struggle to keep pace with other crypto-projects that might not spend as long going over all the details of their implementation. Nevertheless, Hoskinson has stated that they’re beginning to make more steady progress than before. He compares the development of , their proof-of-stake algorithm, to that of Ethereum’s Casper, and claims that they’ve made a lot more strides. So much so that he confidently remarks that they have progressed “to the extent that we have a network running with proof-of-stake at the moment”.

Claims Regarding Cardano, From A Credible Source

Although only time will reveal whether

Core Magazine

Hoskinson’s statements will materialize, he does have a lot of experience working with the Ethereum platform. To his credit, this gives a fair amount of credibility to his statements, even though the Cardano project hasn’t been fully realized. He’s not only the co-founder of Ethereum, but also served as the CEO of its projects from December 2013 to May 2014. Despite having a strong background, particularly with Ethereum, Hoskinson’s claims cannot be completely validated, given the present stage of Cardano’s development. Additionally, there’s also some heavy debate going on in the larger crypto-community, in general, as to which version of proof-ofstake is actually better. The purpose of this article is by no means to offer an exhaustive analysis and explanation of all the intricacies of Cardano’s project. Moreover, it’s meant to help create more awareness, and motivate readers to gain more knowledge about this exciting new technology. Also, Cardano’s intensive research and development efforts have undoubtedly given us a good reason to keep an eye on it as we move forward. Omar Faridi omar@coregroup.info

Blockchain News

Mango Startups Fuses Venture Capitalism And ICOs

ango Startups has announced the launch of the first initial coin offering (ICO) for a VC fund in Latin America. Mango Startups will use blockchain tech to allow interested investors to make early-stage investments in emerging

technology companies. The fund will invest in a diversified portfolio of up to 24 technology startups from countries in Latin America. The aim is to offer transparency and liquidity as well as a clear exit strategy for the investors. Core Magazine

Blockchain News

Americans Might Not Be Reporting Crypto-Related Earnings To Uncle Sam

Americans Choose Not To Disclose Crypto-Related Earnings

Credit Karma, an American multinational personal finance company that offers free (basic) credit scores and reports, has stated that very few cryptocurrency investors have notified the U.S. Internal Revenue Service (IRS) about their investments. In fact, the credit reporting agency revealed that out of approximately 250,000 Americans who filed their taxes through them this year, fewer than 100 individuals included any cryptorelated transactions on their tax returns. It seems that many taxpayers could be trying 94

Core Magazine

to get away with not paying taxes on their crypto earnings, especially if you consider that leading research firm Qualtrics found that 57% of 2000 Americans recently surveyed claimed to have profited from cryptocurrencies. A significant number of the same investors, who were surveyed by Qualtrics, also said that they have never reported their crypto-related earnings to the IRS, commonly referred to as â&#x20AC;&#x153;Uncle Samâ&#x20AC;?. Many investors even admitted that they were aware of how to file taxes on cryptocurrencies, but apparently decided not to. Notably, the IRS classifies digital currencies as property. Therefore, any profits

Blockchain News

or losses from the buying or selling of cryptos are considered to be capital gains (or losses), which must be reported to tax authorities in most cases.

Hard To Figure Out Who Holds Cryptocurrencies

Currently, it’s difficult to determine exactly how many Americans are dealing in cryptocurrencies, which are usually acquired through centralized cryptocurrency exchanges. The main reason why it’s hard to estimate the number of crypto-investors is because many people have chosen to remain anonymous, or use aliases, while conducting digital currency transactions. Presumably, individuals could have kept their identities secret so that they won’t have to pay taxes. However, it’s possible that the crypto-market has grown so quickly that even tax authorities aren’t sure how to properly instruct people on how to report taxes on their cryptocurrency earnings. There’s clearly no shortage of users on cryptocurrency exchanges. In fact, it’s quite common now for trading platforms to go down due to traffic overload. And, as most of us are aware, crypto-exchanges have become a very attractive target for hackers because a lot of money is available on them. So, it should be evident that there’s definitely a substantial amount of taxable income being generated through the digital currency market.

Complicated Tax Returns

challenging for people to file tax returns which show their crypto-related earnings. However, as the tax reporting deadline approaches, he predicts that more people who have complicated tax returns will come forward to report their earnings. However, he still asserts that “Given the popularity of bitcoin and cryptocurrencies in 2017, we’d expect more people to be reporting”. It should be noted that U.S. residents need to report their taxes by April 17th, and around 156 million individuals are expected to file tax returns this year. So, there might be more crypto-related transactions reported to Uncle Sam in the next few months. When you consider that fewer than 1 million taxpayers filed their returns with Credit Karma last year, there’s a chance that the sample size might be too small to assume that not enough people are reporting their crypto-related earnings. Also, governments are fully aware that quite a number of people might have profited from the crypto-market. In fact, as Core Media reported earlier, the state of Arizona has even proposed a bill to accept cryptocurrencies as payment for taxes. More than likely, it will become a routine procedure for people to report their crypto earnings in the foreseeable future. After all, Uncle Sam doesn’t like to skip out on too many payments. Omar Faridi omar@coregroup.info

Jagjit Chawla, General Manager at Credit Karma Tax, thinks that it’s Core Magazine

Blockchain News

Cryptocurrency Optimism | Think Rich To Grow Your Stash And Increase Value

ryptocurrency optimism is the soon coming buzz word combo you will see more of.Â In Cryptocurrency, there are a lot of unsavory bits of news that travel quickly across the wires. In the name of good journalism, I would like to believe 96

Core Magazine

that the buzz of the day is always true but that would be naive. While it would be outrageous to say that the news we see daily is bogus, there tends to be a hard nudge from cloaked entities in

Blockchain News

the direction that best suits the bottom line for these discrete few. It doesn’t mean that I think we are all doomed and it doesn’t mean that the Illuminati is at the round table, it simply means that the Headlines we are fed are more than likely being fed to the benefit of someone-and it might not be you or me. It probably doesn’t matter much who is controlling the central banks, but a more relevant question is why don’t more people NOTICE the control the banks have over the majority of the world? Rebellious to the centralized concept, by its peer-to-peer design, the underlying technologies that enable Bitcoin, Ethereum, and other cryptocurrencies are resistant to the type of manipulation most prevalent in centralized banking. Cryptocurrency presents a unique opportunity to shift the power back into the majority simply because the hand that controls fiat cannot contain the world of crypto with the same ease as centrally banked societies. This is, in part, thanks to the publicly distributed ledger that makes the network operate- you know, the Blockchain.

The Blockchain

The blockchain is something you always hear people talking about and the technology has created an incredible change in the way people transact- in fact it is far improved from the old model. For example, in the traditional banking methods of accounting, there is a middleman who is paid to facilitate the flow of things. Patrons of the bank are

expected to trust this person with their private information, and the storage of their funds. The middleman in this scenario is usually able to reconcile the numbers to fit squarely into the bank’s handy ledger template. That is a problem. When a banker can go back in time and undo a detail this way, it means the details cannot be trusted nor can they be meaningful enough to be safe. Blockchain differs from this because all the information on a blockchain is permanent and immutable- which means nobody erases pieces of the history- it is impossible once a transaction is confirmed it is permanently sealed into the blockchain- and becomes an undeniable part of the history. If a part of the bitcoin network went on strike, the blockchain would continue on without them. All transactions are peer-to-peer, and no bank controls the flow. The transparency of the chain of events is secure, encrypted and yet all eyes can see what is happening so there is never the need to trust a banker to do the right thing when nobody is looking.

Cryptocurrency Optimism Is Needed.

An aspect to consider when examining the popular train of thought in any society, anywhere in the world is the influential sources of input. What drives the actions of the people? Why do we do the things we do? Simply put, people tend to adapt to their environment in a way most comfortable for them if possible. People Core Magazine

Blockchain News

stop asking questions about the system when properly distracted. Media outlets have the task of entertaining, informing and hate to say it, supporting a position that society will likely react well to. On topics as important as blockchain tech it is startling how much we value the opinion of Jamie Dimon, John McAfee, Warren Buffet and Paris Hilton. We let the voices that are in the media speak for us- it is clear when you look at the direct correlation between the price of cryptocurrencies and the rumor mill from the day before. You can see that every time a large bitcoinbashing story surfaces, the price plummets. When someone famous raves about the amazing profits from a portfolio made of crypto- the slope goes zooming upward. If we are in fact in that close of a controlled market where our moods and loud opinions sway the price noticeably then wouldn’t it be a great idea to all agree that we are destined for the great riches and beyond? If we all agree on the marketable value of a coin it is then deemed worth that much. Could it really be so simple, in a vastly complex financial puzzle? Is it possible that all we need to do to ensure the success of our crypto journey is to remain optimistic? Any time a community member is beginning to lose heart and they are starting to feel doubtful in their coin stash - it reduces its value - in the mind of the coin holder. Then it gets passed along the various chains in the form of panic sales and hard “hodling”. 98

Core Magazine

Instead of this reaction, I challenge the community to keep up with the news, of course, but also pay attention to the intricate and delicate pieces of the puzzle. The notion that you personally affect the price of bitcoin is empowering and it is TRUE. For every scam you see in bold letters across the various news feeds of your day, note that there are equally encouraging stories too. Remember- the hand that controls the central banks has a lot at stake if we think this way- which is a good reason to question the motives behind spreading news that portrays reasons to fear and reject cryptocurrencies. The emphasis on the dark side of crypto is dominant in mainstream media to protect the interest of the entities who have the most to lose during the mass adoption of crypto. When the familiar and ominous tone comes surging into the blockchain, please stop to see reality. We are on the starting line of an incredible adventure. Let us explore without polluting our view with FUD (fear uncertainty and doubt). Optimism is the easier route anyway.

Cheers, Lori Brown aka Lorilikes, Core Group Twitter.com/TheLoriBrown

Listen to our show!

https://soundcloud.com/coremediaradio

Blockchain News

Georgia Wants To Accept Cryptocurrencies As Tax Payments

Georgia Proposes To Accept Cryptos As Tax Payments

Georgia recently proposed a Senate bill which, if approved/passed, would allow for cryptocurrencies to be used to pay for taxes. This would apply to all state taxes and even licenses. The Senate Bill 464, requests the state revenue commissioner to: 100

Core Magazine

â&#x20AC;&#x153;accept cryptocurrencies for payment of taxes and license fees; to require conversion of cryptocurrency payments into United States dollars; to provide for related matters; to repeal conflicting laws; and for other purposesâ&#x20AC;?. Furthermore, once crypto payments are

Blockchain News

received, they are to be converted to U.S. dollars within 24 hours. Interestingly, this legislation has been put forth at a time when other U.S. states have also expressed an interest in accepting cryptos as a valid mode of payment for taxes.

Wood claims that making tax payments using cryptocurrencies could actually result in higher tax payments. That’s because any profits generated from crypto investments are also taxed as capital and investment gains, according to Wood.

Georgia Joins Other States In Wanting To Accept Cryptos

It’s possible that state lawmakers are willing to accept cryptocurrencies as tax payments, because they have begun to realize that a significant number of Americans have started trading and investing in cryptocurrencies. However, as Core Media pointed out, very few Americans have reported their cryptorelated earnings to the U.S. Internal Revenue Service (IRS). In fact, fewer than 100 of the 250,000 individuals who filed their taxes through Credit Karma, an American multinational financial firm, included any cryptorelated transactions on their tax returns.

As Core Media reported two weeks ago, the U.S. state of Arizona had also proposed a bill to accept cryptocurrencies as payment for taxes. It appears that Arizona has almost reached the point where it could officially become the first American state to process tax payments in cryptos. That’s because its crypto bill has already passed its third reading. There is some more new crypto-related legislation that has been drafted. Notably, the state of Wyoming has suggested to stop cryptocurrencies from being classified as “property” when it comes to tax collection. Moreover, the SF0111 bill, through which this legislation was put forth, mentioned cryptocurrencies in a list of “intangible items” that should not be subjected to property taxes. Included in this list were cashier cheques and gold.

Tax Payments Could Go Up

These crypto tax bills might be an attempt on part of Georgia and other U.S. states to actually start collecting taxes on cryptocurrencies. If these bills become law, then the state governments could get a better idea of just how many people are involved in the cryptosphere. That’s only if people choose to pay their taxes with cryptocurrencies. Omar Faridi omar@coregroup.info

Although Georgia, Wyoming, Arizona, and a few other U.S. states appear to be taking a crypto-friendly approach, American tax expert Robert Core Magazine

101

Blockchain News

Switzerland Is Interested In Developing Its Own Cryptocurrency

Switzerland Wants Its Own Cryptocurrency

Switzerland is one of the most cryptofriendly countries in the world. In fact, it’s where 4 of the world’s top 10 ICOs have originated. Now, Dr. Romeo Lacher , the head of Switzerland’s Stock Exchange, has stated that there could be several advantages to having a national cryptocurrency. While discussing the country’s plans for its own crypto, Lacher remarked, “I don’t like cash...I 102

Core Magazine

believe there would be a lot of upsides, we would be strongly supportive.” Many other nations, namely Turkey and Iran, have also recently expressed an interest in developing their own, state-controlled cryptocurrencies. However, Switzerland might arguably be more equipped to handle such a project. That’s because, other than ICOs, the peaceful European country has been at the forefront of numerous new developments in

Blockchain News

the cryptosphere. Notably, the Swiss nation is not only where some of the largest ICOs have been launched, but also where local authorities have started to develop a proper regulatory framework for ICOs.

A Pioneer Of The Crypto Industry

In addition to starting the crypto regulations process, the country is home to the Crypto Valley Association (in the town of Zug), which is kind of like the cryptoequivalent to San Francisco’s Silicon Valley. Moreover, Finance Magnates thinks that Switzerland is turning into the “European capital for cryptocurrency.” Additionally, the country has been quite vocal about some of the more serious issues affecting the digital currency market. For example, its town of Basel, a historic place with 40 museums, hosted a detailed discussion on recent developments in cyber crime back in January. This happens to be quite a pertinent issue when you consider that billions of dollars have reportedly been laundered with the use of cryptocurrencies throughout Europe. Furthermore, all sorts of other illegal crypto-related is increasingly being orchestrated, ranging from cryptojacking to hacks of several major cryptocurrency exchanges.

positive things going on. As Lacher, who’s also the head of the Swiss Infrastructure Exchange (SIX) Group, a financial service provider operated by several major Swiss banks, says:

“I think the strategic direction is good. But it’s like going into fog. You don’t know what you will see on the other side. Many mistakes will be made, but we will also learn a lot and I am sure, we will be successful.”

These comments were mainly in reference to Switzerland’s plans to create its own cryptocurrency. Generally speaking, Switzerland is known to provide a business-friendly atmosphere. It has also managed to take good care of its citizens, because it has a history of not meddling in the affairs of the nations. By “minding its own business”, the peaceful and world’s most neutral nation has managed to preserve its financial resources. These have largely been directed to maintaining the welfare of its local population, as is evident by its Human Development Index (HDI). In fact, Switzerland’s HDI is tied at second place with Australia, both behind only Norway. Omar Faridi omar@coregroup.info

Few Details About Switzerland’s Own Cryptocurrency

While there are a number of concerns regarding the various illicit activities in the crypto-market, there are also quite a few Core Magazine

103

Blockchain News

Austria May Regulate Cryptocurrencies Using Gold, Derivatives as Model

ustria is seemingly joining a growing list of countries that are planning to regulate cryptocurrencies and initial coin offerings (ICOs). In Austriaâ&#x20AC;&#x2122;s case, the rules that currently apply to the trading of 106

Core Magazine

gold and derivatives, may also apply to the crypto space as well. This according to the countryâ&#x20AC;&#x2122;s finance minister, Hartwig Loeger, who revealed

Blockchain News

Austria’s primary concern is curbing the use of cryptocurrencies for money laundering – a crime also seen in the precious metals business. As such, the country would extend regulations governing precious metals and derivatives trading, in an attempt to prevent cryptocurrencies from being used by criminals to launder money. Hartwig Loeger was quoted as saying:

measures shouldn’t just be applied in Austria, but also in the European Union. He revealed that he plans on discussing the issue with Portugal’s finance minister Mario Centeno later this week.

Move comes as Austria investigates bitcoin scam Loeger’s statements come at a time in which the Austrian government looks for suspects of an alleged bitcoin scam. A company dubbed Optioment reportedly took roughly 12,000 BTC, worth over $120 million, from over 10,000 investors.

“Cryptocurrencies are significantly gaining importance in the fight against money laundering and terrorism financing. That’s an important aspect for the changes we support. We Companies potentially affected by Loeger’s need more trust and more security.” move are Austria-based HydroMiner, which Outlining the measures Austria plans to implement, Loeger revealed that cryptocurrency market participants will have to identify all trading parties, and disclose any trades above €10,000 ($12,300) to the government financial intelligence unit. Loeger noted that trading platforms should be supervised by the country’s Financial Market Authority (FMA). He added that ICOs should essentially be treated as securities. This means that operators would be required to register “digital prospectuses” with financial watchdogs, and seek regulators’ approval before distributing the tokens.

seeks to use the country’s hydropower facilities to mine cryptocurrencies, and a trading platform dubbed Bitpanda.

As covered by Core Media, regulators in France are also looking to regulate the cryptocurrency space. The country’s stock market regulator, AMF, revealed that platforms offering cryptocurrency derivatives can’t advertise online, and that these derivatives should be subject to the European Union’s Markets in Financial Instruments Directive (MiFID 2). Francisco Memoria franciscom@coregroup.info

Given the borderless nature of cryptocurrencies, Loeger added that these Core Magazine

107

Blockchain News

French Watchdog AMF Gets Tough on Bitcoin Derivatives

French stock market regulator Autorité des marchés financiers (AMF) recently released a statement revealing that bitcoin derivatives trading online are subject to the European Union’s Markets in Financial Instruments Directive (MiFID 2), whose framework requires that derivatives be regulated. The 108

Core Magazine

French Watchdog’s announcement follows a months-long review process. Paris-based AMF also ruled that derivatives can’t legally be advertised online, a common practice within the industry. Per the regulator, the “recent cryptocurrency boom”

Blockchain News

saw online trading platforms offer contracts for difference (CFDs), binary options, and other derivatives tied to cryptocurrencies such as bitcoin. The platforms have investors ‘bet’ on a cryptocurrency, without actually owning it. According to Bloomberg, firms like Plus 500 and IG Group Holdings offered these types of products. Kelsey Traynor, a representative for Plus500, revealed that all of the firm’s CFDs are compliant with AMF’s framework. Cryptocurrency derivatives aren’t included in MiFID 2’s regulation list. Nevertheless, the AMF reasoned that “a cash-settled cryptocurrency contract may qualify as a derivative, irrespective of the legal qualification of a cryptocurrency”. As

such,

the

agency

added:

“As a result, online platforms which offer cryptocurrency derivatives fall within the scope of MiFID 2 and must therefore comply with the authorisation, conduct of business rules, and the EMIR trade reporting obligation to a trade repository. Above all, these products are subject to the provisions of the Sapin 2 law, and notably the ban of advertisements for certain financial contracts.”

The French watchdog’s move is the latest in a EU-wide crackdown on cryptocurrency derivatives targeting retail investors.

French watchdog weighs in on ICOs

The AMF didn’t just get tough on bitcoin derivatives, but also weighed in on ICOs. The agency revealed that it conducted public consultation on potential supervisory options. It received 82 responses from academics, law firms, digital economy players, and finance professionals, among others. Most respondents, per the agency, “support setting up an appropriate legal framework for this new type of funding”. The AMF offered respondents three options for consideration. These included promoting a best practice guide without changing existing legislation, extending existing legislation to treat ICOs as public offerings of securities, or propose new legislation adapted to ICOs. The last option received 66% approval. AMF also revealed that respondents consider an informational document to be necessary, informing potential investors of some of the project’s aspects.

The

agency

added:

“Finally, the vast majority of respondents favour the establishment of rules making it possible to ensure the escrow of funds raised, and the setting up of a mechanism to prevent money laundering and terrorist financing.” Francisco Memoria franciscom@coregroup.info

Core Magazine

109

Blockchain News

Turkey Has Revealed Plans To Create Its Own Cryptocurrency

Turkey Plans To Launch

ts Own Cryptocurrency Turkish politicians are reportedly planning to develop their country’s own

110

Core Magazine

cryptocurrency. This appears to be a jointinitiative being pursued by Turkey’s ruling Justice and Development party (AKP) and the nation’s Nationalist Movement party (MHP). This seems a bit unexpected

Blockchain News

considering Turkish authorities previously compared digital currencies to a pyramid scheme and cautioned investors to steer clear from them. Now, presumably after some more research and investigation, the MHP has suggested that rather than ignoring cryptocurrencies, the government should develop a legislative framework to monitor and regulate their crypto-market. Ahmet Kenan Tanrikulu, a prominent economist and MHP’s former deputy chair, has recommended the launch of Turkcoin, a state-controlled “national bitcoin”. Mr. Tanrikulu has not merely suggested such a move, but has also drafted a 22-page detailed report regarding the plan.

Getting Into Crypto Before “It’s Too Late”

While discussing his proposed cryptoproject, the Turkish politician stated, “The world is advancing toward a new digital system. Turkey should create its own digital system and currency before it’s too late”. The former minister of Industry and Commerce acknowledged the use of cryptocurrencies in Turkey, even though the country does not have a proper set of crypto regulations. He also pointed out that “The need for regulation is obvious” and added that the use of digital currencies to conduct illicit activities must be stopped. He then went on to explain that there are over 1,400 cryptocurrencies, and many other countries have already adopted them. Therefore, he thinks that Turkey should be capable of creating its own cryptocurrency as well. Moreover, the need for a state-controlled

crypto is there, but that doesn’t mean it will be competing with other digital currencies, according to Mr. Tanrikulu. Presumably, this means that Turkey’s state-issued crypto will serve its own purpose. Per Tanrikulu,

“This is a national issue which requires a national consensus”.

Few Details Regarding Turkcoin’s Implementation

Although not all the implementation details regarding Turkey’s proposed Turkcoin are clear at the moment, it has been suggested that the state’s cryptocurrency might be issued by tokenizing it with asset-backed securities. Tanrikulu believes that this should significantly reduce the risks associated with typical cryptocurrencies, because it will be pegged to a more stable asset. It’s possible that Turkcoin could be pinned to the assets of certain large, public Turkish companies that are a part of the $200 billion Turkish Wealth Fund, based on Turkrkulu’s report. These organization include the Istanbul Stock Exchange, Turk Telekom, and the Turkish Airlines. Interestingly, Turkey’s announcement has come right when its neighbor, Iran, has also expressed an interest in developing its own cryptocurrency. Although the specific reasons for creating their state-backed digital currencies might be different, they’ve joined a growing list of countries countries that are planning to launch their own cryptocurrencies. Omar Faridi omar@coregroup.info Core Magazine

111

Blockchain News

Iran Announces Plans To Develop Its Own Cryptocurrency

Iran Announces Plans

or Its Own Cryptocurrency Iran, a country that has been the target of US-led sanctions for quite some time, has announced plans to develop its own cryptocurrency. Mohammad-Javad Azari Jahrom, Iranian engineer and the nation’s Minister of Information and Communications Technology, tweeted on Wednesday that the government-run Post 112

Core Magazine

Bank is working on Iran’s crypto-related project. Roughly translated from Farsi (Persian), his tweet stated:

“In a meeting with the board of directors of Post Bank on digital currencies based on the blockchain, I ... prescribed ... measures to implement the country’s first cloud-based digital currency”.

Blockchain News

Additionally, the Iran Front Page revealed that the Central Bank of Iran is trying to monitor the use of cryptocurrencies with the help of a few other institutions.

resulted in a loss of $100 billion in foreign direct investment and oil revenues. It’s also estimated that the total loss is around $500 billion if you factor in “opportunity costs”.

Cryptos: “Highly Unreliable” & Risky

Presumably, Iran might be planning to develop its own cryptocurrency in an attempt to bypass internationally imposed sanctions. That’s because leaders of other countries, such as Venezuela, which is also suffering from similar crippling economic restrictions, have suggested that they’ve developed their own crypto to circumvent sanctions. However, the United States has warned countries like Venezuela that they could be violating sanctions if they intend to use digital currencies to conduct prohibited transactions.

As most crypto-watchers would know, Iran is not the first country to consider developing its own digital currency. Notably, Venezuela, another country that has been hit hard with international sanctions, has already launched the Petro, its oil-backed cryptocurrency. In fact, Venezuelan President Nicolas Maduro claims that the Petro has already raised approximately $735 million.

Although Iran and Venezuela are poles apart when it comes to their ideology and culture, both nations have been heavily scrutinized by the American government. But, if the crypto-market continues to grow and develop, there might come a time when the United States, or even the United Nations, would not be able to assert their dominance over other countries. The reason they could lose their grip on power is because almost everything depends on the flow of money. When the U.S. won’t be able to restrict trades or transactions as effectively, then it will begin to lose most of its control over the world

According to the central bank, the cryptomarket is “highly unreliable” and risky due to its extreme volatility. The bank also cited concerns regarding questionable “network marketing” tactics involving cryptocurrencies and even pyramid schemes. Like many other world authorities, the bank discouraged the country’s citizens from investing in digital currencies because of the possibility of losing “their financial assets”.

No Details Regarding Iran’s Crypto Plans

Iran is well-known for maintaining a high level of secrecy regarding many of its government-led projects, especially its nuclear program. Therefore, it’s possible that we may not be able to obtain any reliable information regarding the details of its crypto-project. Moreover, the socalled rogue state’s insistence on carrying on with its controversial nuclear plan has

Omar Faridi omar@coregroup.info

Core Magazine

113

Supernet News

KOMODO - THE SLEEPING DRAGON.

ith over a thousand cryptocurrencies and new ones springing up on a daily basis, standing out requires the introduction of truly innovative technologies with real world use cases. Letâ&#x20AC;&#x2122;s take a look at how Komodo fares in this regard. Komodo (KMD), the cryptocurrency of the Komodo platform and ecosystem, came into existence when its genesis block was mined on September, 2014. It was created to provide cost-effective security through its novel delayed Proof of Work consensus mechanism (dPoW), and anonymity using the zk-Snarks technology from ZCash.. 114

Core Magazine

Building On ZCashâ&#x20AC;&#x2122;s Technology

The zk- SNARK or Zero-Knowledge Succinct Non-Interactive Argument of Knowledge technology, in simple terms, makes it possible to verify transactions without giving away information about the parties involved in the transactions. Komodo borrows and builds on this technology by ZCash to provide optional anonymity and privacy on its network. To ensure security, Komodo employs its main innovation called delayed Proof of Work (dPoW). With delayed Proof of Work on Komodo, 64 nodes called notary nodes are elected to notarize or back up komodo

Suprenet News

transaction history into the chosen, most secure PoW blockchain. This process is known as “notarization”. In a similar fashion, assets on the Komodo platform can also opt to “notarize” their transaction history into the Komodo blockchain. Another detail of the dPoW mechanism worth knowing is that the election of notary nodes are carried out based on the weight of users’ stake in Komodo. Also, the most secure PoW blockchain happens to be the Bitcoin blockchain at the moment but should this change in the future, the notary nodes would elect to switch to the most secure PoW blockchain.

Key Points From The Komodo Whitepaper

According to the Komodo whitepaper, the dPoW mechanism makes the Komodo network at least as secure as the PoW blockchain its transactions are backed up into. This is because an attacker would have to alter the history of the chosen most secure PoW blockchain as well. Based on this, any potential disagreements with regards to what the ‘real’ Komodo chain is would simply be resolved by referring to the chosen PoW blockchain for the last Komodo backup. This feature of the dPoW mechanism is a deviation from the longest chain rule used by PoW consensus-based blockchains like Bitcoin. The longest chain rule stipulates that in the uncommon event where there are two contending chains, the longest chain becomes the “true” chain whiles the other gets erased. There are two main reasons stated in the

Komodo Whitepaper to justify the need for delayed PoW. The first is that nascent blockchains are basically at the mercy of 51% and Genesis attacks. Cited in the Komodo whitepaper as an example of such a case is the “coiledcoin Genesis attack”. Luke Jr., a bitcoin core developer, in 2012, used a 51% attack to bring down coiledcoin. A 51% attack can occur when an actor is able to gain control of the majority of mining PoWer on a network. The said actor would be able to alter transaction history and disallow confirmation of other transactions. New cryptocurrency projects with smaller mining PoWer are therefore more prone to the 51% attacks. Komodo avoids having this vulnerability by using the dPoW mechanism. The other reason is that it is more costefficient and environmentally friendly to notarize transaction history into the most secure Proof of Work (PoW) blockchain than to compete with other PoW blockchains for mining PoWer. Mining today requires huge investments and consumes incredibly high amounts of energy.

Benefits Of dPoW Mechanism

A benefit komodo holders gain from the dPoW mechanism is that in place of miner rewards, users who hold at least 10 KMD in their wallets, receive 5% annual percentage rate on their holdings. Only transparent addresses receive this reward. Transparent addresses are simply addresses that do not use the privacy feature. Another condition required for receiving the 5% annual percentage rate is to move coins at least once a year. The dICO or decentralized Initial Coin Core Magazine

115

Supernet News

Offering is another innovation by Komodo. The dICO platform by Komodo aims to bring privacy to ICO transactions, tackle the problem of whale manipulation, and avoid hacks and theft of funds. Their decentralized exchange known as BarterDex, and privacy technology known as Jumblr are at the center of this solution. Moreover, the Komodo whitepaper spells out the procedure for listing and distributing ICOs. Distribution of “dICO” tokens are to be done through prior selected nodes (any device that is connected to BarterDex) with “bags” of the tokens to be distributed. The “bags” of tokens are subdivisions of the total supply of the coins. The date for buying the tokens or coins from the wallets of the various nodes would then be set. Following this, users on BarterDex would be able to purchase the tokens on the chosen date.

Transparent ICO Process & Credible Development Team

The above process of rolling out ICOs would help reduce manipulation by “whales” who would want to buy tokens early when sale is restricted to the general public and manipulate price with the tokens they amass. Also, atomic swaps on BarterDex enables users to make trades without third parties. The Jumblr technology can be used by users of BarterDex for privacy. These are all solutions to problems with centralized ICO releases without privacy. The credibility of cryptocurrency projects following bitcoin are often judged based on the reputation of founders and leaders. Projects with unknown leaders are often written off as shady. At the same time, when a project 116

Core Magazine

has its leader being its face or ambassador of some sorts, it gets criticized for having a leader who could be compromised or be a dictator. The anonymous team of Komodo is led by an individual known and JL777 who happens to have been involved with the Zcash cryptocurrency as well. He/she is reported by the Komodo platform website to have about twenty years of experience in the technology field. The Komodo project is however neither shrouded in secrecy nor shady. There has been considerable effort put in explaining the complex processes behind their technology and being generally open.

Komodo’s Market Capitalization

At the time of writing this, Komodo was priced at $3.95 on coinmarketcap. This is bad news for anyone who bought at $12.8 on December 21 and watched the price plummet alongside the entire cryptocurrency market. Early investors who got in for less than 20 cents are, however, still sitting pretty. Coinmarketcap.com also displays a circulating supply of 103,776,309 KMD and a market cap of $409,952,743 USD for Komodo. This is not an invitation to buy Komodo, but a look at the innovation it brings to the cryptocurrency space, what it aims to achieve and how it plans to do so. It would be interesting to keep an eye on the new and original technology from the Komodo team, and the impact they have on the cryptocurrency ecosystem. Elikem Kofi Attah edited by Omar Faridi

Blockchain News

NEM President Says Cryptocurrency Price Manipulation Is "Unavoidable"

NEM President: Crypto Price Manipulation Is “Unavoidable” Lon Wong, President of NEM.io Foundation Ltd, has stated that, “Price manipulation [of cryptocurrencies] is not something new”. While speaking to CNBC, the NEM president also said that regulators should develop a “coherent” regulatory framework to monitor the use of digital currencies. Furthermore, price manipulation

of cryptocurrencies is neither a recent development nor something which is avoidable, according to Mr. Wong. This assertion seems to backed by several events that suggest the presence of market manipulation in not only the relatively small crypto-market, but also in the more established traditional markets. In an attempt to justify his statements, the NEM president then compared the emerging cryptocurrency market with the world’s Core Magazine

117

Blockchain News

much larger fiat-based financial system. He began his comparison by noting that price manipulation is prevalent in “mainstream markets” as well. Per the NEM executive, the crypto-community is in its “nascent, growing phase”. Therefore, it wouldn’t be unreasonable to consider these issues to be a type of “growing pain”.

Focus Should Be On CryptoTechnology The NEM president predicts that price manipulation will become “a thing of the past” once the cryptocurrency market has “matured” and stabilized. However, he adds that his organization prefers to focus on improving and further developing its technology rather than concerning itself with prices. During his detailed discussion with CNBC, Mr. Wong appeared to be addressing concerns cited by crypto investors about market prices being manipulated by large digital currency exchanges such as Bitfinex. In fact, as reported earlier by Core Media, Bitfinex was subpoenaed by the U.S. Commodity Futures Trading Commission (CFTC) back in December 2017. Although specifics regarding exactly what information the CFTC had requested have not be confirmed, but there’s a fair chance it could be something related to price manipulation. Notably, these comments from the NEM president have come just a few weeks after $534 million worth of NEM tokens were stolen during a major hack of Japan’s Coincheck crypto-exchange. 118

Core Magazine

Regulators Have A Lot To Learn

Arguably the most noteworthy comment from the NEM president was that regulators don’t know enough about cryptocurrencies. Therefore, Mr. Wong thinks they are not yet capable of effectively regulating virtual currencies, particularly the centralized crypto-exchanges. Despite regulator’s lack of adequate knowledge and experience about the crypto-market and its underlying technology, he believes that “both sides of the divide, the exchanges and the regulators, [will come] together worldwide and [come] to a conclusion about how to get to the next step”. Given the current state of the global cryptocurrency market and all the different ways regulators have reacted to this new development, it seems unlikely that authorities worldwide will come to some sort of join consensus on how to deal with cryptocurrencies. It’s also worth noting that Mr. Wong’s prediction about price manipulation exiting the crypto-market once it matures is also unlikely. That’s because there are strong indications that price manipulation still goes on in the traditional and highly regulated financial system. So it seems illogical to assume that there won’t be any manipulation in the crypto-market, even if stabilizes. Although we might not necessarily agree with everything the NEM president says, it’s always good to know what the major players in the crypto-world are thinking. Omar Faridi omar@coregroup.info

Blockchain News

Hackers Use Telegram Exploit to Infect Users with Cryto Mining Malware

he ongoing cryptojacking trend recently got to popular messaging app Telegram. According to Kaspersky Labs, a Russian multinational cybersecurity and antivirus provider, hackers exploited a vulnerability in Telegramâ&#x20AC;&#x2122;s desktop app and inserted cryptocurrency

mining scripts on its usersâ&#x20AC;&#x2122; computers. These parasitic scripts were then used to mine privacy-centric cryptocurrencies, including Zcash and Monero. Hackers managed to use a zero-day vulnerability in Telegram, which was based Core Magazine

119

Blockchain News

on the app’s feature, to recognize Arabic and Hebrew. These languages are written right to left, and the code that allows its recognition was used by malware creators to get users to download malicious files. Using a hidden character in the code that allows their order to be reversed, the attackers could rename the file, so as to trick users. The harmful software was seemingly only found in Russia, according to Kaspersky. Notably, the crypto mining scripts were also used as a backdoor that gave hackers remote access to their victims’ computers. This also allowed them to steal user info. Kaspersky’s blog post reads: “By using the victim’s PC computing power, cybercriminals have been creating different types of cryptocurrency including Monero, Zcash, Fantomcoin and others. Moreover, while analyzing a threat actor’s servers, Kaspersky Lab researchers found archives containing a Telegram local cache that had been stolen from victims.”

Telegram isn’t the only vulnerable app

Researchers noted that the vulnerability was being used to target Russian Telegram users since March 2017. Kaspersky eventually found out and reported it to the messaging app in October. By November, the post says, the problem was fixed. Telegram is currently the world’s ninth most popular mobile messaging app. It is expected to reach 200 million users in the first quarter of 2018. The company is set 120

Core Magazine

to launch one of the biggest initial coin offerings (ICO) ever seen. According to various reports, the company could raise up to $2 billion through its token sale. Although only Telegram’s desktop version was affected,researchers note other messaging apps are also vulnerable. Per Kaspersky, a vulnerability that allowed hackers to steal WhatsApp messages was found last month. Responding to the news, Telegram stated: “This is not a real vulnerability on Telegram Desktop, no one can remotely take control of your computer or Telegram unless you open a (malicious) file.” Users can protect themselves from the ongoing cryptojakcing trend by using antimalware tools on their computers. Moreover, while browsing the web, browsers like Opera and Brave feature built-in tools that block cryptocurrency miners on websites. Francisco Memoria franciscom@coregroup.info

Previous Issues of CORE Magazine

September 2017

October 2017

December 2017

January 2018

November 2017

February 2018

Like what you see? Subscribe today!

121

122

Core Magazine