Coin News

• Block.one, a blockchain company that raised a record $4 billion for its initial coin offering for its token Eos, released the first version of its software on June 2. 
• The release of the final product, a blockchain platform, has been delayed by the startup's unorthodox roll-out, which allows cryptocurrency enthusiasts outside the company to test out different versions of its software — with the first one to be finished winning out.
•  One hacker, who made $120,000 hunting for bugs in the current software, suggests that Eos's core technology is riddled with bugs.

Last week, Guido Vranken made $120,000 from his laptop while sitting in his living room. 

Vranken has spent the past few days combing through the source code of Eos, the software created by the blockchain company Block.one. 

Eos's developers have taken an unorthodox approach to their software which has caused some delays in the final product's debut, which will be a blockchain. Block.one is allowing developers outside of the company to create and test out different versions of the technology, and the group that launches its software first will go on to represent the prevailing Eos blockchain.

While delays from this unusual rollout process were largely anticipated, numerous flaws in Eos's software have also been exposed, and that's how Vranken managed to make $120,000 in a matter of days.  

Despite taking in a staggering $4 billion since the company first embarked on its fundraising efforts last year, Block.one hasn't yet revealed what it plans to do with the majority of the money, although it's pledged to invest at least $1 billion into EOS-based startups.

In the brief history of token offerings, Eos's raise has ballooned to an all time record-high. The company, which is backed by veteran blockchain project founder Dan Larimer, has promised to deliver a powerful system for decentralized apps that might someday dethrone the highly successful blockchain project ethereum. Its launch has been described by its proponents as "a new dawn" and "the beginning of a new age."

During the week following its launch, the Cayman Islands-based company deployed a small portion of its billions to Vranken, an ethical hacker. Vranken said he approached the company's chief technology officer, Dan Larimer, after independently discovering flaws in its software.

In the short time he's spent working on Eos's technology, Vranken said that he's discovered 12 bugs. In a deal made with Larimer, Vranken said the company agreed to pay him $10,000 for each bug he finds. ("You are really raking it in," Vranken said Larimer told him when he re-negotiated the deal for a higher amount.)

Vranken described the security flaws he discovered in Eos as "very bad." 

"You could crash a network," Vranken said on a phone call from his home in the Netherlands. "I’m not sure about the entire Eos network, but you could incur some serious damage."

Vranken said the flaws he discovered within Eos could have posed a "PR disaster."

"It would have been good if they started this bug bounty program a lot earlier," said Vranken. "Now, it seems a bit late."

While Vranken said that it's not unusual for projects of Eos's complexity to have issues early on, he said that both the number of bugs he found and the degree of their severity was troubling.

Vranken has worked on the source code for other blockchain projects in the past. Ethereum, Ripple, and Stellar have all paid Vranken for his work exposing vulnerabilities in their software, he said. Of these projects, Vranken said that Eos has had the largest number of bugs. For instance, since he began working on ethereum's source code in September, Vranken said that he's discovered only two bugs in the company's technology. 

Representatives from Block.one, who did not respond to Business Insider's request for comment, seemed surprised to hear the number of bugs Vranken had discovered, he said. Vranken said that he's happy with the working partnership he's made with Eos thus far.

"Good payouts, and they appreciate my effort," he said. "They told me, 'Find as many bugs as you can.'"

Vranken said that he believes that searching for bugs in the source code of cryptocurrencies could soon become a burgeoning business for both himself and other hackers. 

"I hope that more cryptocurrencies will begin offering bug bounties," he said. "It will always be in their best interest."

As for the money he's made off of Eos this week, Vranken said, "I think I will buy a house."

SEE ALSO: 

Join the conversation about this story »

NOW WATCH: How to avoid having your computer hacked

Bitcoin’s price has bottomed and will break out over the next few days. That’s what Robert Sluymer, head of technical strategy at Fundstrat Global Advisors, predicts. Sluymer doubled-down on his earlier projection that positive momentum is building for the top cryptocurrency by market cap, and a price spike is just around the corner. As CCN previously

The post Bitcoin Price Breakout Days Away, Long-Term Trend Bullish: Analyst appeared first on CCN

This is a sponsored story. CCN urges readers to conduct their own research with due diligence into the company, product or service mentioned in the content below. Even though the introduction of blockchain with bitcoin in 2009 has managed to disrupt several existing industries unrelated to cryptocurrency such as logistics and international finance, current implementations of

The post Nebulas is Incentivizing Developers to Create Quality Decentralized Applications appeared first on CCN

This is a paid-for submitted press release. CCN does not endorse, nor is responsible for any material included below and isn’t responsible for any damages or losses connected with any products or services mentioned in the press release. CCN urges readers to conduct their own research with due diligence into the company, product or service mentioned

The post BookiePro Launches Public Beta with Five-Bitcoin Prize Fund for World Cup appeared first on CCN

A new lawsuit claims XRP is a security controlled by Ripple.

Welcome to Crypto Insider, Business Insider's roundup of all the bitcoin and cryptocurrency news you need to know today. Sign up here to get this email delivered direct to your inbox.

Investment manager VanEck is trying its hand at launching a bitcoin-linked investment product for the third time. But one market structure expert says its 19-page risk-disclosure section is "laughable." Here's why

Here are the current crypto prices:

In the news:

SEE ALSO: CHANOS: 'The last thing I’d want to own is bitcoin if the grid goes down'

Join the conversation about this story »

NOW WATCH: Why so many fast food logos are red

Welcome to Crypto Insider, Business Insider's roundup of all the bitcoin and cryptocurrency news you need to know today. Sign up here to get this email delivered direct to your inbox.

Investment manager VanEck is trying its hand at launching a bitcoin-linked investment product for the third time. But one market structure expert says its 19-page risk-disclosure section is "laughable." Here's why

Here are the current crypto prices:

In the news:

SEE ALSO: CHANOS: 'The last thing I’d want to own is bitcoin if the grid goes down'

Join the conversation about this story »

NOW WATCH: Why so many fast food logos are red

Welcome to Finance Insider, Business Insider's summary of the top stories of the past 24 hours. Sign up here to get the best of Business Insider delivered direct to your inbox.

Facebook getting back into news business 

Facebook is getting back into the business of having employees make decisions about news organizations and stories — including about their credibility — something company leaders including Mark Zuckerberg have previously renounced.

The company has open job listings for two "news credibility specialists," one of which would be required to be able to speak, read, and write fluently in Spanish. The jobs, which Facebook listed within the last few weeks, would be contract positions, rather than full-time, but would be based in Menlo Park, California, site of Facebook's headquarters.

Key departure at Tourbillon 

A founding partner has resigned from the struggling hedge fund Tourbillon Capital Partners after six years at the firm.

Amy Zipper, the chief operating officer and president at Tourbillon Capital, left last week, several people familiar with the matter said.

Before Tourbillon, Zipper worked at Carlson Capital in business development, according to her LinkedIn page. Tourbillon's founder, Jason Karp, was previously a co-chief investment officer at Carlson.

Crypto risks abound 

If at first you don't succeed, try, try, and try again. That appears to be VanEck's strategy when it comes to bitcoin-linked investments.

The asset manager has, for the third time, filed with the Securities and Exchange Commission a bitcoin exchange-traded fund, the company announced earlier this week. It is partnering with blockchain firm SolidX on the fund.

But one market structure expert is calling the fund's filing "laughable."

More drama at Allergan

A handful of large Allergan shareholders are privately discussing bringing back former Allergan chief executive David Pyott in a chairman role, according to people familiar with the matter.

Billionaire investor David Tepper's hedge fund Appaloosa Management and Senator Investment Group on Tuesday called on the Botox-maker's board to split chief executive and chairman roles at the company which are both currently held by Brent Saunders. Carl Icahn has also taken a stake in the company, according to Bloomberg.

In markets news

• Share buybacks are the market's hidden backbone — Goldman Sachs says these 13 stocks will get the biggest boost from them through 2019

Join the conversation about this story »

NOW WATCH: 80% of startup money goes to 3 states — here's what one visionary is doing to help spread the wealth

With all the media coverage surrounding double spend attacks in recent weeks, it appears that one such exploit — a 51 percent attack on litecoin cash (LCC) — managed to slip through the cracks. Litecoin Cash Allegedly Hit by 51 Percent Attack The alleged incident appears to have occurred on May 30, when Russia-based cryptocurrency

The post Litecoin Cash Allegedly the Latest Small-Cap Altcoin to Suffer 51 Percent Attack appeared first on CCN

• Investment manager VanEck is trying its hand at launching a bitcoin-linked investment product for the third time. 
• But one market structure expert says its 25-page risk-disclosure section is "laughable."
• The risk disclosures for VanEck's product are about double the normal length of typical ETFs, market structure experts told Business Insider.  
• The filing notes manipulation as a risk factor: "The price of bitcoin may be influenced by fraud and manipulation for a number of reasons."

If at first you don't succeed, try, try, and try again. That appears to be VanEck's strategy when it comes to bitcoin-linked investments. 

The asset manager has, for the third time, filed with the Securities and Exchange Commission a bitcoin exchange-traded fund, the company announced earlier this week. It is partnering with blockchain firm SolidX on the fund. 

But one market structure expert is calling the fund's filing "laughable."

Joe Saluzzi, the cofounder of Themis Trading, said he's skeptical of bitcoin ETFs generally, but thought the one filed by VanEck was especially striking considering its risk disclosure section is 19 pages. 

"Listen, I got a problem in general with the ETFs in bitcoin," Saluzzi said in a phone interview. "They have market structure problems they haven't begun to address, but this one is a stand out."

"It is laughable," he said. 

Market observers told Business Insider that the number of pages of risk disclosures for VanEck's newest product are about double the normal length of typical ETFs. To be sure, many riskier investment products, such as those tied to oil and the volatility index VIX, have long disclosures, said Eric Evin, the CEO of fund manager Reality Shares.

Still, none are as long. VXX, one of the original exchange traded notes tied to VIX, has about 9 pages of disclosures. VanEck's filing for an actively managed ETF linked to bitcoin derivatives has about 13 pages of risk disclosures. 

A bitcoin ETF has been viewed as a natural next step in bitcoin's maturation as an asset and could precipitate the entrance of more retail investors into the crypto market. But the concept has received pushback from regulators who want to closely monitor the potential risks they could present to investors. 

Opponents of bitcoin ETFs take issue with the lack of liquidity in the market and the lack of market surveillance to stomp out manipulation.

The filing notes manipulation as a risk factor. From the filing:

"The price of bitcoin may be influenced by fraud and manipulation for a number of reasons, including the following: most bitcoin spot markets are not regulated or supervised by a government agency; platforms may lack critical system safeguards, including customer protections; volatile market price swings or flash crashes; cyber risks, such as hacking customer wallets; and/or platforms selling from their own accounts and putting customers at an unfair disadvantage."

A spokesperson for VanEck did not respond to requests for comment on the filing. 

SEE ALSO: Fidelity, a household name in American investing, is plotting a big move into cryptocurrency trading

Join the conversation about this story »

NOW WATCH: THE KRISTIN LEMKAU INTERVIEW: JPMorgan Chase's CMO explains how she deals with disruption on two fronts at once, why she's moving some ad dollars back to TV, and why it matters what your credit card feels like

This article originally appeared on Bitcoin Magazine.

A mysterious “Asian whale” accumulated more than 94,000 bitcoins during the first half of 2018, and now they have begun to move them back to one of the cryptocurrency exchanges from which they originated, sparking fears of a new selloff. Blockchain data shows that bitcoin address 1KAt6STtisWMMVo5XGdos9P7DBNNsFfjx7 accumulated more than 93,947 BTC — at one

The post Sell-Off Incoming? Mysterious ‘Asian Whale’ Begins Funneling Bitcoins Back to Huobi appeared first on CCN

This story was delivered to Business Insider Intelligence "Fintech Briefing" subscribers. To learn more and subscribe, please click here.

The crypto industry has taken some hits since the beginning of 2018, with Bitcoin’s price dropping over 60% earlier this year and initial coin offerings (ICOs) experiencing slowing activity. This is likely making some crypto exchanges nervous and pushing them to diversify their products to ensure customer satisfaction, as well as to generate revenue.

Two US-based crypto exchanges are taking different approaches to rolling out more products:

• Coinbase has acquired securities dealer Keystone Capital. As a registered broker-dealer, Keystone can operate as a registered investment adviser and offer alternative trading systems. This move will allow Coinbase to offer products tied to stocks or other securities in the future, including digital tokens that are under the oversight of the Securities and Exchange Commission (SEC). Many crypto exchanges have been reluctant to offer these tokens, but Keystone's license should serve to eliminate any potential compliance issues. Coinbase will then be able to offer a larger set of cryptocurrencies to its customers, which will likely enhance their user experience. Coinbase still needs regulatory approval to use Keystone's license, but it's confident that it will be granted approval in the next few months.
• Circle has opted to apply for a banking license. Fintech unicorn Circle has plans to apply for a federal banking license, which would allow it to offer more services to its customers. This move would make Circle less dependent on conventional lenders and allow it hold deposits for customers. Additionally, it wants to become registered as a brokerage and trading venue under the SEC to enable investors to buy and sell tokens that are classified as securities by the regulator. Similarly to Coinbase, this would enable Circle to introduce more cryptocurrencies on its exchange, but acquiring its own license may take a bit longer.

These moves should help the crypto exchanges remain relevant in an increasingly difficult space. With cryptocurrencies failing to remain at the highs they saw at the end of 2017, many investors are likely a bit more wary when it comes to the assets. Therefore, rolling out more services and supporting a larger variety of cryptocurrencies is likely wise of these companies.

However, Coinbase's approach may prove the path of least resistance, as leveraging Keystone's license is likely to be far easier than applying to become a registered brokerage. It also remains to be seen whether Circle will be granted a banking license, as none have been given out to fintech players so far, and regulators will probably be even more skeptical of crypto companies.

Subscribe to an All-Access pass to Business Insider Intelligence and gain immediate access to:

	Content like this delivered straight to your inbox daily
	Access to 250+ expertly researched reports plus all future reports
	Forecasts of new and emerging technologies in your industry
	And more!

Learn More

Join the conversation about this story »

The valuation of the cryptocurrency market has dropped by more than $9 billion over the past 24 hours, as major cryptocurrencies such as bitcoin, Ethereum, Ripple, Bitcoin Cash, and Cardano declined in the range of 2 to 5 percent. Minor Movement Yesterday, on June 7, CCN reported that the cryptocurrency market has stabilized to an

The post Bitcoin, Ethereum, Ripple Drop 3% in $9 Billion Crypto Market Retreat appeared first on CCN

The valuation of the cryptocurrency market has dropped by more than $9 billion over the past 24 hours, as major cryptocurrencies such as bitcoin, Ethereum, Ripple, Bitcoin Cash, and Cardano declined in the range of 2 to 5 percent. Minor Movement Yesterday, on June 7, CCN reported that the cryptocurrency market has stabilized to an

The post Bitcoin, Ethereum, Ripple Drop 3% in $9 Billion Crypto Market Retreat appeared first on CCN

Here is what you need to know. 

The G7 kicks off. "Prime Minister Trudeau is being so indignant, bringing up the relationship that the U.S. and Canada had over the many years and all sorts of other things," Trump tweeted Thursday. "But he doesn't bring up the fact that they charge us up to 300% on dairy — hurting our Farmers, killing our Agriculture."

China's trade surplus narrows — but not with the US. China's overall trade surplus unexpectedly narrowed to $24.92 billion in May while its trade surplus with the US widened to $24.58 billion.  

Homes in America are selling at a record pace. The amount of time from list-to-sale fell to 64 days in April from 77 days a year ago, the shortest amount of time since Trulia started keeping track in 2010.

The world's largest producer of bitcoin mining chips is reportedly considering an IPO. Bitmain Technologies, the world's largest producer of bitcoin mining chips, run by the 32-year-old cryptocurrency billionaire Jihan Wu, is considering an initial public offering, Bloomberg says. 

Apple reportedly warned suppliers of lower parts orders for new iPhones. The tech giant warned suppliers it will need 20% less components for iPhones in the second half of the year, Nikkei Asia Review says, citing industry sources.  

Twitter is officially part of the S&P 500. Shares of the social-media company fell 1.02% in their trading debut in the benchmark index.

McDonald's rallies after report says it's announcing corporate layoffs. McDonald's gained 4.37% Thursday after a Wall Street Journal report said the fast-food giant was looking to trim down its corporate structure. 

The Netflix of China is on a hot streak with millennial investors. Data from the stock-trading app Robinhood — whose usership skews markedly younger than traditional brokerages — show iQiyi jumped 32 spots in popularity over the past week, making it the 42nd most popular stock. Shares of the company are up 81% over the last month.

Stock markets around the world are lower. Hong Kong's Hang Seng (-1.78%) was hit hard in Asia and Germany's DAX (-1.05%) trails in Europe. The S&P 500 is set to open down 0.49% near 2,757.

US economic data trickles out. Wholesale inventories will be released at 10 a.m. ET. The US 10-year yield is down 1 basis point at 2.91%. 

Join the conversation about this story »

Bitcoin could be in for a big move as the daily trading range tightens, but will the bulls or the bears gain the upper hand?

Two more bitcoin cash mining pools have announced they will support the “Miner’s Choice” initiative, which urges miners to remove the dust limit and begin processing a set number of zero-fee transactions. CoinGeek — which along with nChain devised the plan — on Thursday announced that mining pools ViaBTC and Bitcoin.com have agreed to join

The post Second-Largest Bitcoin Cash Mining Pool Agrees to Process Zero-Fee Transactions appeared first on CCN

This article originally appeared on Bitcoin Magazine.

According to John Lore, the founder of Capital Fund Law Group, academic institutions and universities have started to get involved in the cryptocurrency market, acknowledging the long-term potential of cryptocurrencies like bitcoin and ethereum. “We’re seeing some academic institutions getting involved on a limited basis for strategic reasons. I can’t say the names of [the

The post Universities Have Started to Invest in Bitcoin, Start of Institutional Adoption appeared first on CCN

This article originally appeared on Bitcoin Magazine.