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Hackers nab $500k as Enigma is compromised weeks before its ICO

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Re: Hackers nab $500k as Enigma is compromised weeks before its ICO

#111

Post by EGreg »

sillysaurus3 wrote: post #84
EGreg wrote: post #78

Question: in light of the SEC decision regarding the DAO, is there any way to do an ICO that doesn't run the risk of later the whole company being shut down for not registering securities? Like maybe opening the company in Crypto Valley, Zug? Is there a way to do a public offering of tokens? Or does it necessitate all the same reporting that a publicly listed company has? Could still be worth it! Because the investor…

Yes: Do an ICO like a kickstarter. It's not illegal. The tokens just need to not be financial instruments. You can say "Buy my tokens to fund my project."

Wait, what? Can lawyers please weigh in on this?

There are the Howey test on the Federal level, and then there is also the Risk Capital Test in several states.

Precedent can very easily go towards the direction that people have a reasonable expectation of the tokens going up in value, making them securities in the eyes of at least the Risk Capital Test. In fact club memberships became securities under this test!

http://www.theselc.org/which_states_apply_the_risk_capital_t...

Re: Hackers nab $500k as Enigma is compromised weeks before its ICO

#112

Post by jacquesm »

che_shirecat wrote: post #56

How to make money in ethereum, from high to low risk: 1. Dump the leftovers of your bi-weekly software engineering paycheck into buying ETH, BTC, or whichever altcoin is popular this week. It went up 5000% in the past, it's got to keep growing right? 2. Participate in an ICO and stock up on whatever platform token they're hawking. It's more profitable if you get in early due to some presale mechanism (hopefully here…

5. Set up an exchange, wait a few weeks, abscond with bitcoin/ether/whatever you've got.

Re: Hackers nab $500k as Enigma is compromised weeks before its ICO

#114

Post by conception »

che_shirecat wrote: post #56

How to make money in ethereum, from high to low risk: 1. Dump the leftovers of your bi-weekly software engineering paycheck into buying ETH, BTC, or whichever altcoin is popular this week. It went up 5000% in the past, it's got to keep growing right? 2. Participate in an ICO and stock up on whatever platform token they're hawking. It's more profitable if you get in early due to some presale mechanism (hopefully here…

The best part is you can mix 3 and 4 together! Rob yourself! All the money, no effort and no accountability!

Re: Hackers nab $500k as Enigma is compromised weeks before its ICO

#115

Post by justadeveloper2 »

hendzen wrote: post #53
wott wrote: post #28

Earlier quoted context omitted.

I am unconvinced that hard earned money is 'invested' in those companies. The target demographic is not hard working class.

The target demographic is gullible, greedy software engineers who have a lot of disposable income but lack experience in conducting due diligence on speculative investments. Basically, Hacker News readers. Why do you think there are so many ICO related posts on this site? It's not accidental.

I'm glad to hear skepticism--I always considered these e-coins to be the perfect scam to attract Millenial technocrats and then fleece them.

Re: Hackers nab $500k as Enigma is compromised weeks before its ICO

#116

Post by justadeveloper2 »

TAForObvReasons wrote: post #47
wott wrote: post #28

Earlier quoted context omitted.

I am unconvinced that hard earned money is 'invested' in those companies. The target demographic is not hard working class.

CNBC has been talking about Bitcoin, Ethereum, Ethereum Lite and a slew of recent ICOs in the last month or so. Whether those viewers count as "hard working class" is up for debate

We're still in the "attract as many rubes as possible phase" which is always followed by the "slam the trap shut phase"

Re: Hackers nab $500k as Enigma is compromised weeks before its ICO

#117

Post by justadeveloper2 »

CPLX wrote: post #94
nickbauman wrote: post #42

Cryptocurrency is probably doomed because the makers of cryptocurrencies have a fundamental conceptual disconnect with money: what it is, why it works and what it represents. Money only works when you have a powerful state actor enforcing the legality of the transaction. When you try to escape that, you get at best a parallel system that still goes back to the state for help in keeping functioning or a system prone t…

Perhaps. Another way of looking at it is that they have an intuitive and successful connection with the mechanics of gambling. Cryptocurrencies and ICO's as they stand today conceptually have a lot more in common with the old urban numbers rackets[0] than they do with the concept of currency. [0] https://en.wikipedia.org/wiki/Numbers_game

I had an uncle who used to "carry money" for numbers rackets in NY which I think means he was involved in racketeering. I don't claim to understand how it worked, but I know the winning numbers were related to the winners of certain horse races. The state lottery pretty much put an end to it.

Re: Hackers nab $500k as Enigma is compromised weeks before its ICO

#118

Post by will_brown »

mhluongo wrote: post #33
crypt1d wrote: post #6

This might as well be a scam created by the CEO himself. I mean, who in this 'crypto world' would be stupid enough to use the same, previously compromised, password on all his accounts? P.S. there was a story on reddit (can't find it now unfortunately) about how the attackers tried to deposit the money to Bittrex but luckily someone alerted them and the exchange froze the account. So there is still some hope that fun…

Why would he do that when he'd make more on the actual token sale?

Well he just walked away with $500k and got more press than he could have ever paid for.

I've never heard of Enigma before today, hell I still don't have a clue what they are going to actually do besides an ICO, but I know they have just implemented best practices security and it's a safe bet to make money. I think PG calls this a submarine.

Re: Hackers nab $500k as Enigma is compromised weeks before its ICO

#119

Post by hinkley »

conception wrote: post #114
che_shirecat wrote: post #56

How to make money in ethereum, from high to low risk: 1. Dump the leftovers of your bi-weekly software engineering paycheck into buying ETH, BTC, or whichever altcoin is popular this week. It went up 5000% in the past, it's got to keep growing right? 2. Participate in an ICO and stock up on whatever platform token they're hawking. It's more profitable if you get in early due to some presale mechanism (hopefully here…

The best part is you can mix 3 and 4 together! Rob yourself! All the money, no effort and no accountability!

This sounds like The Producers meets Sneakers.

Re: Hackers nab $500k as Enigma is compromised weeks before its ICO

#120

Post by justadeveloper2 »

SirensOfTitan wrote: post #15
bkolobara wrote: post #5

Earlier quoted context omitted.

The problem is that most people tricked into "investing" in such platforms probably don't make anything like a software engineer at Google. This loss hurts them a lot.

Even knowledgeable people can fall victim to attacks like this.

Smart people are often the easiest to scam because they believe they can't be scammed.
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