CryptoBasic Podcast

Your source for all Cryptocurrency information, made for the novice investor. 

Episode 211 - China goes bullish on blockchain, Uber Money is a thing, and.. happy birthday Bitcoin!

Episode 211.png

Come one, come all, to this week's Flagship Friday, where we cover the week's crypto news and happenings!

Today we're taking a look at Uber getting into the crypto world with Uber Money, we're taking a look at China that, in true China fashion, goes bullish on blockchain in the most authoritarian, orwellian way possible, and finally - we're celebrating! Big Daddy Bitcoin is 11 years old as of today! 

All of the above and more on today's episode!

Dive into the cryptoverse with us on this week's edition of Flagship Friday!

Ledger Nano S - The secure hardware wallet

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Flagship Friday 11/1/19



  • Uber Is Creating Its Own Payments Service Called Uber Money
    • On Monday, October 28th Uber launched it's own payments service called Uber Money initially aimed towards its 4 mill drivers.
    • Can store money, track transaction history and make electronic payments. One cool feature is the overdraft protection of up to $100. So if a driver is strapped for cash, they can fill up their tank with gas so they can go out and work.
    • No cryptocurrency element. Crypto can be murky with the law, and expensive and slow if transferring small amounts.
    • Financial firms have actually been improving their own tech to make mobile payments faster and cheaper.
    • Uber could one day offer a bank account to consumers.
    • “We wanted to help everybody understand that there’s a new part of Uber that’s focused on financial services, and that has a mission of giving people access to the type of financial services they were excluded from,” Uber Money head Peter Hazlehurst told CNBC.
    • Industry observers see this as a way to bind users to their platform to keep them engaged—a customer retention play as well.
  • (Charting the course of Bitcoin, 11 years and counting)

    • Bitcoin white paper was published Oct 31 2008 (all we know about author is it wasn't CW)
    • coinbase blog post examining 11 indicators btc is gaining momentum, creating econ opportunity, increasing global utility
    • Comparisons with other tech
      • Email (1972) - Took till 1997 to surpass 10m people
      • TV (1927) - By the end of the 1940s only 2% of families had one
      • BTC (2008) - 27m in US by 2019, 9%
    • Google Trends
      • Interest has been spreading across the world, with countries taking turns on the top spot for highest relative interest
      • 2009, Austria had the highest relative interest, followed by Kazakhstan (2010), Estonia (2011), Finland (2012), Ghana (2015), Nigeria (2016), and South Africa (2017).
      • In 2018 more americans typed in Bitcoin than royal wedding or election results
    • Over 55,000 computers in 96 countries running full nodes
    • Buying $10/mo in btn over past 4 years (Oct 2015) would have a yield 595%
      • $480 to 3337...sponsored by coinbase =)
    • Demand for Bitcoin in economically volatile regions reached record highs in 2019

      • Local Bitcoins exchange volume in Venezuela, Argentina, & HK spiking

    • Okay so we all know Bitcoin is the most secure blockchain

      • Now at 108m terahashes per second
      • "Bitcoin is far and away the largest computational network ever created,"
        • Source is legit but had to check this claim
        • Multilple articles from 2013, 2015 talking about how many times more powerful than 500 supercomputers bitcoin was
  • Get your cows, BUT ON BLOCKCHAIN
    • There's a lot of issue with supply chain, more than I ever knew.
    • Being launched by Wong Supermarket, which is apparently Chilean, you'll be able to scan your meat via an app, and see where its been.
    • There's a company behind this is called SUKU, which is a US based supply chain company with founders from Deloitte.
    • They're actually developing on the Quorum chain, which is the JP Morgan permissioned chain.
    • “You have a large group of consumers that want to buy sustainability, and want to buy transparent products from brands. But they don’t do it today – they don’t trust what the brands are saying. There’s a $1 trillion market sitting there for companies and brands to take if they can speak the same language as those consumers do.”
    • This would even track the animal welfare and everything. If they say "We have vaccinated every animal" it would then need to be confirmed by the correct observing party.
    • Apparently Wong is kinda like a Whole Foods, but it was bought by a conglomorate called Cencosud and people were pissed.
  • WTF is going on with Bitmain
    • Bitmain is a huge mining firm, one of the biggest in existence.
    • They've ousted the co-founder and executive director - his name is Micree Ketuan Zhan.
    • Coindesk got the following from an anonymous source for an internal E-mail from Jihan Wu-
    • “Bitmain’s co-founder, chairman, legal representative and executive director Jihan Wu has decided to dismiss all roles of Ketuan Zhan, effective immediately. Any Bitmain staff shall no longer take any direction from Zhan, or participate in any meeting organized by Zhan. Bitmain may, based on the situation, consider terminating employment contracts of those who violate this note.”
    • There isn't any information on WHY.
    • He actually owned more shares than the more well known Jihan Wu .
    • There was an all hands meeting on Tuesday to discuss this, and CoinDesk was even able to get some info from that.
    • Wu had stepped away from Bitmain in December of 2018 as an active day to day participant, but obviously is back at it. Apparently the two had a massive falling out, and it resulted in what Wu described as a power struggle in the meeting, and they had been since 2015.
    • The major layoffs in 2018 were a key point of contention, Zhan didn't want to fire anyone, and Wu didn't see the company surviving if they didn't, so Zhan tried to seize control as the sole CEO at that time .
    • So he starts throwin shade, saying Zhan was insecure and he let him have his chainman role etc, but that this resulted in pulled credit lines, and calling up of credit. If Bitcoin hadn't bounced back, maybe there was no saving the company after that.
    • Bitmain has had declining hashrate share and it continues to do so.
    • Apparently Zhan wanted to move into AI, which isn't really their niche and wanted to raise funds and dedicate current funds to do it. I guess this was the big divide.
    • He's also banned from the offices.
    • Maybe this will hurr their chances at their planned US IPO?

Crypto Around the World

  • China goes bullish on blockchain
    • China Now Banning Anything Calling Blockchain A Scam
    • Business Insider article
    • Xi said last week that China should accelerate the development of blockchain technology
      • called for greater research and investment
      • Quoted saying it will play an important role in next round of tech innovation and industrial transformation
      • And that China wanted to gain an edge over other major countries in R&D
      • and in a wider goal, demanded deep integration with other information technologies , including AI, big data, & IOT.
    • Official at Central Bank urging commercial banks to 'step up their application'
      • So of course that caused a market boom
      • People's Daily (State newspaper) tried to tamper enthusiasm
      • “Blockchain’s future is here but we must remain rational, The rise of blockchain technology was accompanied by that of cryptocurrencies, but innovation in blockchain technology does not mean we should speculate in virtual currencies.”
  • Croatia's UBIK NGO Moves Governance To Blockchain
    • Starting Nov 1st Croatia's NGO is moving it's governance onto the Ethereum blockchain in the form of a DAO using Aragon.
    • UBIK is a Croatian blockchain and cryptocurrency association. If you belong to it you will have the right to 10 reputation tokens
    • Board members will get 100 tokens
    • UBIK executed a blockchain vote earlier in the year but it was using QR codes in a temporary wallet not on Ethereum. They were trying to keep it simple for non-technical users.
    • UBIK requires a proper blockchain wallet to use like Metamask or Frame. Less straightforward so there might be some onboarding for the less savvy users.
    • DAO will be used to group decisions and will be first blockchain in the world to do such a thing in an official capacity. DAO will also keep the funds in DeFi earning 5-10% annually to offset fees for the org.

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Episode 210 - Google's quantum supremacy, Zuckerberg testifies, and the CryptoBasic community gets attacked.

Episode 210.png

Welcome to another Flagship Friday, where we discuss the most important happenings in the crypto community weekly!

Today we're talking a lot about what the big ol' giants have been up to, with Google's quantum computer running big ol' data pretty quickly, and Facebook's Mark Zuckerberg doing a big ol' testimony for like, what, the billionth time? Also, we're taking a look at a... questionable feature of the Lightning Network and talking about something very unfortunate that happened to the CryptoBasic community last week - we got attacked by scammers. 

Dive into the cryptoverse with us on this week's Flagship Friday.

Ledger Nano S - The secure hardware wallet

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Flagship Friday 10/25/2019


  • Rapid Fire
  • Bakkt Follows Up Record Volume With Another Forecasted All-Time High
    • Yes, maybe in the short term a lot of the volume is shorting BTC but that doesn't really matter. What matters is the institutional money is starting to flow in.
    • Wednesday 640 traded contracts (new ATH). Day before was 85 lol. Previous record was 224.
    • Institutional investors made long positions of over 1k BTC in October, up from 500 BTC the previous month.
  • Bakkt To Launch Options Trading in December
    • Dec 9th launch and fully regulated and approved by its backer, The Intercontinental Exchange and the CFTC, the governing agency on derivatives.
    • Hopes to bring trust and utility to digital assets
  • Boris Johnson has pledged to deliver Brexit by October 31st. $10k has been put on Brexit not happening by the end of the month on the Augur platform. Only 5% on it actually happening.
    • Augur is a decentralized prediction market that depends on "wisdow of crowds" and has been pretty on point thus far.. Predicted Dems taking the house, price of BTC above 4k October 22nd, Justin Trudeau winning Canada reelection, etc.
  • What's an atomic swap?
    • Binance Academy posted an article explaining what an atomic swap is. Basically it allows two different cryptocurrencies to be exchanged quickly. You can trade them directly from your personal wallets.
    • Essentially peer to peer trades across different blockchains.
    • This allows for users more security by not having to put it on a third party exchange and also cuts one step out for most alt coins by not having to convert it into one of the bigger coins like BTC or Eth to then convert it to the coin you wanted initially.

  • (Zuckerberg Testifies) -K

    • House Financial services committee
    • Now positioning Libra as a reaction to China's plan to release a similar cryptocurrency
      • Before it was about it being international, here playing to US lawmakers
      • "Libra will be backed mostly by dollars and I believe it will extend America’s financial leadership,”
    • Apparently 4 lawmakers had sent letters to members asking not to participate (maybe why we saw mass exodus)
    • FB also distinguished LIbra from their wallet, and clarified "Facebook’s intention not to sell data about Calibra wallet users to third parties"
      • "if america doesnt lead on this others will"
    • Friday, October 19, three new bills were introduced aimed at undermining Facebook’s efforts
      • Keeping Big Tech Out of Finance Act
      • “Stablecoins are Securities” bill (would affect a ton of exchanges)
      • “To Prohibit The Listing of Certain Securities,”
        • appears to seek to prevent stablecoins like libra from entering the capital markets space
  • User Loses 4 BTC in Lightning Network - B

    So this is pretty complicated, but user ZipoTim from reddit posted that he has lost 4 BTC from the lightning network.

    So this is super complicated, but basically here's how this works. If you ever upload an old version of a transaction, the "penalty" is to let the other user keep all of the funds from the lightning channel.

    This is to prevent double spend on the lightning network, since there's no consensus lightning algorithm, there is an exploit where you could send a transaction through the LN, and then send an old version of your LN Node, but with a force close transaction listed before the sent amount gets processed.

    For this reason, LN operators are told not to keep backups, but that's completely counter-intuitive to sys admin as I understand it.

    The user claims there was a power outage so their timestamp was affected?

    So I guess there's still a real possibility he was trying to do something shady and it backfired. He was using the LN to run some sort of online Gambling business. Apparently he sold his apartment for 4 BTC, and lives in Bulgaria.

    Apparently some of the money didn't belong to him.

    This seems like there may have actually been malicious intent here to me - but at the same time it seems really easy to lose a ton accidentally.

    r/Bitcoin labeled the post with reckless flair. Classy.

  • Google’s ‘Quantum Supremacy’: A Surprising Potential Application - K

    • So one critique of Googles "quantum supremacy" is that its not very useful yet
      • What is Quantum supremacy?
        • Wikipedia - the potential ability of devices to solve problems that classical computers practically cannot.
        • to perform a single calculation that no conventional computer, even the biggest supercomputer, can perform in a reasonable amount of time.
      • What google achieved again was
        • Calculatin whether the output of an rng algorithm was truly random
        • Googles Quantum computer did this in 3m 20sec
        • According to the paper the IBM Summit-3, most powerful commercially-available computer would take about 10,000 years
          • Peak Speed is 200,000 teraflops
          • Equivalent in human terms = 6.3b people, all make a calculation at the same time, every second, for a year = 1 second of Summit-3
    • Google's research could lead to improvements behind proof-of-stake cyptocurrencies
      • POS entails random selection of nodes to become validators
      • So the obvious question is how to ensure node selection is truly random
      • Even this calculation could add security and piece of mind to tons of clients, like ensuring dice arent loaded
      • They do quote a Mathematician from California Davis saying its overkill
        • but concedes he could be wrong and respects certified randomness as complex
  • Bullish or Bullshit - Ex-CFTC Chair Says Trump Admin Popped BTC Bubble in 2017 - A

    • Christian Giancarlo, the former CFTC chair who left in April after a five year term gave CoinDesk an interview earlier this week.
    • Direct quote: “One of the untold stories of the past few years is that the CFTC, the Treasury, the SEC and the [National Economic Council] director at the time, Gary Cohn, believed that the launch of bitcoin futures would have the impact of popping the bitcoin bubble. And it worked.”
    • Futures were announced Dec. 1 2017 on Chicago Mercantile Exchange (CME) and the CBOE Futures Exchange and went live on Dec. 18th 2017.
    • Direct quote: “We saw a bubble building and we thought the best way to address it was to allow the market to interact with it,”
    • Direct quote:

      “If you do believe it’s a ridiculous price but you don’t own, there’s no way to express that view,” Giancarlo told CoinDesk, adding:

      “If you don’t have that derivative, then all you’ve got are believers [and] it’s a believers’ market.”

    • Giancarlo believes that permitting bitcoin futures in 2017 helped keep the market free and he believed that it showed the power of markets to bring discipline to prices.

  • The average life expectancy for a fiat currency is 27 years.? - K
    • Blog post by John Paul Koning exploring this often referred figure
    • Starts tracing claim back from advertising, some books (particularly from Gold proponents) finally to a guy named Matt Hewitt (since removed)
    • He did do some math
      • counted 176 currencies that are still in circulation, and 599 that aren’t.
      • 27 years is the average lifespan, if you dont count the 176
    • Also out of the 599 they didnt just explode, mostly deliberately replaced
      • For example Dutch gulder, French franc, and Italian lira were swapped for new monetary unit - Euro. Currency holder were fairly compensated
      • When Kenya, Tanzania, & Uganada separated from East African Currency Board they created new currencies, citizens could exchange EA shillings for new currency

THAT'S A SCAM

  • Former NBA Player defrauds $825k in Bitcoin scam

    • Isaac Austin, former NBA player, who retired in 2004 was a trustee for his own BTC trading company. Managed to get a Ghanaian firm to hand over $11,000 per BTC. $800k was transferred to his account from the firm and has yet to be touched. Claimed he would pay back investments and then some at close of trading.
    • The victim says Austin gave a whole raft of excuses including; that he’d suffered a heart attack, transferred coins to the wrong wallet, was in queues at banks, and that banks were holding the funds.
  • Our Scam - B

    • "Do yo know anyone who is selling ETH or that has it? I left my ledger at the office and am meeting a client, I went on btcpop but they want to charge me 27% to borrow it for an hour till I'm back and that's insane " - Scumbag Scammer .
    • He was able to clone mt 4 digit number on my discord ID and make his name similar, then he cropped my user picture.
    • There were a bunch of red flags that unfortunately didn't end up stopping Tony. The caller ID came up as someone other than me (won't name the name because I suspect it's spoofed).
    • Tony asked for voice verification and the scammer dodged.
    • Said he had 4000 BTC so he didn't need to rob.
    • Said something about using his iPhone
    • After making excuses he dais that Adam would send him a discord message, and made a new account with Adam's name.

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Episode 209 - Telegram's in trouble, Libra gets ghosted, and more.

Episode 209.png

Another week, another Flagship!

This week, the CryptoBasic Avengers have assembled to talk shit about big tech. The roasting session begins with Telegram and ends with Libra, given the fact that all bullshit leads to the Big Zucc. Additionally, Epic Games is starting to get its feet wet with crypto and eToro is making... interesting strides in the world of bot trading. All of the above and more on today's episode, so tune in!

Dive into the cryptoverse with us on this week's Flagship Friday.

Ledger Nano S - The secure hardware wallet

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Flagship Friday 10/18/19



  • Telegram In Hot Water With The SEC

    • SEC has formally instructed Telegram Group to halt the sales of cryptocurrency Gram
      • "filed an emergency action and obtained temporary restraining order against two offshore entities"
    • Why? - "conducting an alleged unregistered, ongoing digital token offering in the U.S. and overseas"
      • Remember they raised $1.7 billion
    • So by failing to register the sale of tokens back in Jan 2018, which are considered securities, they are in violation of the Securities Act of 1933
    • “Our emergency action today is intended to prevent Telegram from flooding the US markets with digital tokens that we allege were unlawfully sold,”
      • failed to provide investors with info regarding business operations, financial condition, risk factors, & management
    • And remember this quote from a NYT article we covered a few weeks ago on the show
      • "Telegram promised in legal documents that it would deliver Grams to investors by Oct. 31, 2019, or give back the money."
      • Making matters worse, violation of Securities Act may mean Telegram has to forfeit the $1.7b it raised
      • “We have repeatedly stated that issuers cannot avoid the federal securities laws just by labeling their product a cryptocurrency or a digital token,”
    • So what are they going to do?
      • Telegram Looks to Cut Deal With TON Blockchain Investors After SEC Order
      • They notified investors that the TON project will launch later, to April 30 2020
      • From an email to investors
        • "We disagree with the SEC’s legal position and intend to vigorously defend the lawsuit. We are proposing to extend the deadline date in order to provide additional time to resolve the SEC’s lawsuit and work with other governmental authorities in advance of the launch of the TON network.”
      • The investors (token holders) have to agree to delay, and there are two groups (2 rounds of investing)
      • 2nd round investors have till Oct 23 to sign & approve, If investors choose not to sign they can get back approximately 77% of their money. 1st round investors got different communication
      • Court hearing scheduled for Oct 24
  • Libra Time! Like we said last week, I guess Libra gets its own section.

  • NANO has released a plugin for Unreal Engine .

    • Tons of game son this engine - Assassin's Creed, Batman games, Borderlands, literally hundreds of games.
    • I checked out the Demo, it was super cool. The game had a real time wallet transaction list. You paid to join the game in Nano, and then every monster you killed earned you nano in real time, transferred to your wallet as soon as you killed the monster.
    • Then you could spend nano to buy items in the game.
    • Imagine a Fortnite or other battle royale game where you spent a little money to join, and first place got it all.
    • A reddit user pointed out 0 spending $500 and give them their allowance there.
  • CFTC Chairman gives opinion on Ether

    • CFTC Chairman Heath Tarbert has said ether is a commodity
    • Speaking to Yahoo Finance he made the following statement
      • “We’ve been very clear on bitcoin: bitcoin is a commodity. We haven’t said anything about ether – until now, It is my view as chairman of the CFTC that ether is a commodity.”
    • Concerning currencies created by hard forks
      • “It stands to reason that similar assets should be treated similarly. If the underlying asset, the original digital asset, hasn’t been determined to be a security and is therefore a commodity, most likely the forked asset will be the same. Unless the fork itself raises some securities law issues under that classic Howey Test.”
  • eToro Launches a Crypto Trading Bot that is 100% Based on Twitter sentiment.

    • I hate that this thing might work.
    • It uses an AI to scrap Twitter for sentiment on crypto assets and allocates the portfolio accordingly.
    • Requires a $2k min investment.
    • It's in partnership with the TIE Data Analysis firm.
    • Current Allocations

      • DONT OPEN

        47% DASH

        25% EOS

        21% XRP

        5% IOTA

        2% ETC

    • I was a little bit disingenuous - There are only 13 monitored assets.

      BTC, ETH, XRP, IOTA, BCH, NEO, ETC, DASH, EOS, XLM, LTC, ZEC, ADA

    • They've also said they're eliminating 90% of all posts because they believe they come from bots. HOLY SHIT.

    • They also have to program the AI to figure out if EOS referrs to, say, the EOS blockchain or the EOS camera.
    • They said they know there's a ton of XRP shills out there, for instance, pushing an XRP tweetstorm every day, but they compare it to the previous day to make any decisions on allocation

THAT'S A SCAM

  • S Korea/US bust giant child porn site by following bitcoin trail (Maybe it's not a scam but thought it should go here)
    • SK man arrested, 337 others charged in global sweep
    • rescued 23 victims since march 2018
    • Jong Woo Son, 23, operated a Darknet market that accepted Bitcoin and distributed more than 1mill sexually explicit videos involving children. Serving 18 months in prison in SK. Seems low.
    • “Our agency’s ability to analyze the blockchain and de-anonymize Bitcoin transactions allowed for the identification of hundreds of predators around the world,” Fort said. “The scale of this crime is eye-popping and sickening.”
    • IRS Criminal Investigation Division also claimed credit. Don Fort, chief of the division

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Episode 208 - IRS Spells it out - Crypto and Hearthstone? - Poker - and more.

Episode 208.png

What exactly does Hearthstone have to do with the Cryptocurrency space? Why does Brent like Gods Unchained now? You’re going to find out the answers to those questions and many, many more. We’re going to go over everything from negative comments about Ethereum from an Ethereum conference, to spending 20 minutes on an off topic conversation about poker.

I don’t even think Bitcoin is mentioned once, and definitely not the price because Karim is gone on this one. We stick to just the news, just right.

Ledger Nano S - The secure hardware wallet

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Flagship Friday 10/11/19


  • Hearthstone Player Blitzchung speaks out and gets banned by Blizzard. Gods Unchained responds with an invite to $500k tournament

    Update: Gods Unchained hit by cyberattacks after speaking out

    • Earlier this week Hearthstone player, Blitzchung, spoke out against Hong Kong in a Twitch interview saying "Liberate Hong Kong, revolution of our age!" in a gas mask. Blizzard then removed him from the Hearthstone Grand Masters tournament taking away his prize money ($10,000) and effectively banning him from future tournaments. Tencent, a Chinese conglomerate has a large stake in Activision/Blizzard
    • Gods Unchained reaches out and says they will reimburse his lost winnings plus invite him to their upcoming $500k tournament. Went on to say that Blizzard will exploit their players if it is in their immediate financial interest. And how Gods Unchained has built uncensorable items with an open economy and market.
  • IRS FAQ on Virtual Currency Transaction

    • It's being treated as property for general tax purposes.
    • You must recognize capital gains or losses on Virtual currency sales
    • If you held it for 1 year or less you pay via short term, and 1 year or more it's long term capital gains. This starts the day after it was received.
    • They are basing gain or loss on USD.
    • You get to include all fees you get charged while acquiring the currency in value. It's unclear if you get to claim network fees here, but it sounds like you can.
    • Getting paid in Virtual Currency is income. Paying someone in Virtual currency means you have to recognize your gain or loss on that.
    • They say a lot that you need to determine the fair market value of the currency based on the day you get it, but don't give any specific guidelines for doing it with regards to crypto.
    • If you DON'T receive coin through a hard fork you don't have income. If you DO get coins in a hard fork you do have income. Soft forks produce no value.
    • Hard forks are considered ordinary income, not capital gains, again based on fair market value when it happens. This is going to be wildly hard to track - but you are supposed to base it on the day that you can actually sell it / transfer it
    • If you get paid / goods / or whatever for a currency with no market value you have to base its value on the goods you got.
    • Gifts are not taxable income, but have a value placed on them when you get them.
    • Donations don't recognize gain/loss and do count as donations based on fair market value.
    • Transfers between your own wallets do not cause realization of gains.
    • Doesn't make sense in current form

      Problems the community has noticed:

    • The rules on hard forks are a little unclear.

    • Someone could theoretically hard fork you into a massive tax liability as an attack.
    • They determine that having the public / private keys is enough to determine ownership, so as long as I send that to the person I attack I guess I can make them get taxed?
  • Is Ethereum legal?

    • In a talk at DevCon5, Vlad Zamfir gave a warning about Ethereum. Developers need to start thinking about it's legal status, rather than hoping it is so disruptive governments are forced to accept it.
    • "Ethereum was born into a counter-cultural movement, a cypherpunk movement. In Ethereum, we went much farther than Bitcoin and said we didn't just want to do this for money, but for everything."
    • The issue is smart contracts are basically an esoteric legal form, marked as understood as legal contracts. He went on to ask "how does our anti-legal revolution react with the established legal order?"
    • He is posing this question that is important. If blockchain creators keep acting brazenly with no respect for the law, it will provoke a reaction from the governments.
    • Three scenarios: Ethereum gets co-opted, regulated, or competed out of existence. Governments could create a centralized system that runs electronic contracts, making payments happen automatically. Could be faster and cheaper and more tempting to businesses
    • He then closes the talk saying "we (ethereum) are pretty disruptive and it's inevitably going to come to a head. What we're doing is too radical and revolutionary for the established legal order to ignore"
  • More problems for Libra

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Episode 207 - Libra gets opposition, Exchanges rate different coins, and there's more scams.

Episode 207.png

This week the team discusses Libra opposition, more scams, and more.

Ledger Nano S - The secure hardware wallet

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Flagship Friday 10/4/19

  • Intro

    Hey everyone, welcome to Flagship Friday! Flagship episodes are where we discuss all the news, current events, and goings on in the crypto community in the following week.

    The CryptoBasic Podcast was founded to give the crypto community a place to learn about their favorite projects from a perspective that doesn't require technical knowledge, or any deep understanding of mathematics. We always keep it Basic.

    Today is and this is our (FS number) Friday in a row without missing one!


AD - WILD FOODS


  • (Crypto Exchanges Creating a Token Rating System)
    • Coinbase Blog - "Introducing the Crypto Rating Council"
      • Create system that rates tokens on how close they are to a security
      • "Although the U.S SEC has issued helpful guidance...
        • Analysis requires fact-intensive analysis by knowledgeable experts
        • Analysis is difficult, expensive, and will lead to judgement calls & disagreements
      • So Coinbase brought together industry leaders, securities law experts to create
        • "a scalable, points-based rating system centered around a set of several dozen, yes / no factual questions."
        • Question derived directly from SEC guidance and case law
        • They say they focused on "objective, repeatable, fact-driven questions"
      • Council Members
        • Anchorage
          • Part of the Libra association
          • Basically a crypto vault were transactions are validated by Quorum
          • No usernames/passwords/phonenumbers nothing a hacker could use or get
          • "clients whitelist devices held by their employees, who use the Anchorage app to submit transactions. You’d propose selling $10 million worth of Bitcoin or transferring it to someone else as payment, and a minimum of two-thirds of your designated co-workers would need to concur to form a quorum that approves the transfer."
          • Also uses behavioral analysis, biometric signals, network signals. Its human AI mix
        • Bittrex
        • Circle
        • Coinbase
        • DRW Cumberland
        • Genesis
        • Grayscale Investments
        • Kraken
      • Scores range between 1 and 5 (5 being most like a security)
      • Expected to change over time, and open to feedback
      • Crypto Rating Council
        • Bitcoin - 1.0
          • Absence of a marketed token sale & marketing efforts
          • decentralized development and usage
          • Anonymity of the Project Team
          • Litecoin, Monero
        • Ethereum - 2.0
          • Current functionality of the platform
          • Absence of investment-like language or marketing
          • Decentralized development and usage
          • Zcash
        • EOS - 3.75
          • Absence of investment-like language or marketing
          • Current functionality of the platform
          • Raised funds in excess of what would reasonably be necessary for development of the platform
          • Decentraland, Hedera Hashgraph, Loom Network, Stellar, Tezos
        • XRP - 4.0
          • Usage of securities-like language
          • Sale of tokens or token interests prior to the existence of token utility
          • Marketing of the token suggesting an opportunity to earn profits
          • Decentralized development and usage
          • CEO of Ripple has said its pretty clear XRP is not a security
  • Ohio is no longer accepting BitPay -
  • (Libra Update, Thing Looking....Not Great)
    • We know there's been tons of official opposition
    • WSJ Report Tuesday that
      • Visa, Mastercard, and “other financial partners that signed on to help build and maintain the Libra payments network” are now reconsidering whether they should remain involved.
      • Apparently FB been asking them to help and show support, and they are declining
      • "Their reluctance has Facebook scrambling to keep Libra on track."
    • Prior August reporting said Libra partners were wary that pushing Libra would "attract broader regulatory scrutiny of their activities"
      • Lo and behold, DOJ requested Visa, Mastercard, Stripe & PayPal to provide a "complete overview of their money-laundering compliance programs and how Libra will fit into them.”
    • Here's the rub
      • None of the 28 association members have committed beyond nonbinding letters
      • The $10 million that FB asked for each member for development? No one has paid it
    • Multiple flanks
      • FB facing heat from DOJ opening an antitrust investgation. Also the FTC and multiple states, like multiple
        • Led by NY AG, but Colorado, Florida, Iowa, Nebraska, NC, Ohio, Tennessee, and DC involved
      • Federal investigation getting cooperation from Snapchat
        • Legal team for years kept a dossier of "ways that the company felt FB was trying to thwart competition"
        • The tile of the documents....Project Voldemort
          • Allege things like Instagram effectively barred users from linking to their Snapchat profiles in their bios.
          • Also that Snapchat content was prevented from trending on the platform
          • Supressed search results of snap-related searches
      • But apparently FTC has contacted "dozens of tech executives and app developers”
      • Investigators also looking into Onavo
        • VPN FB bought in 2013
        • Later pressured into shutting it down amid reports it was sucking up lots of data about user app usage
        • Its apparently this data that clued them in on WhatsApp posing a potential threat, and pushing them to buy it
        • They were also using Onavo to monitor how people used Snapchat, how many snaps a day they sent

THAT'S A SCAM

  • Fair Win Story
    • What is fair win? Well shit I might as well let them tell you word for word - Blockchain + gambling, blockchain + game, establish industry standard interface, 70% income anti-subsidy investor players.
    • So this is being listed as a $150M Ponzi Scheme. Posted about on medium by Philippe Castonguay
    • First red flag - the team consisted of a famous piano player (Dang Thai Son) and an instagram influencer's (Jessica Vu) pictures.
    • Dude found typos and bugs all over the contract.
    • He also found that the contract had been drained for 2600 ETH once on 7/27 with an old exploit.
    • He then finds an exploit where you can essentially swap out an invite code and steal ETH from depositors to the contract.
    • They got a group together to decide what to do and exposed the scam last week.
    • And of course as soon as they announced the problem, team drained the accounts.

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Episode 206 - Justin Sun invites the big dogs to eat, Telegram's doing stealthy crypto moves and 640 crypto projects get EXPOSED.

206 big.png

Another week, another flagship. This time, all 3 of the guys are on the show, as Brent's sniffles have subsided and he's pumped up to talk crypto with the crew. Today we go over how Kik's ditching its messaging service to focus on crypto, how Telegram is about to bamboozle libra, as well as the entire crypto space, in the most cool-guys-don't-look-at-explosions way possible, and we're taking a look at 640 crypto projects that haven't pubished a single line of code in over a YEAR. We also (lightly) touch on the price of bitcoin (so that it doesn't trip and fall further down) and we answer a mailbag question concerning halvenings asked by yours truly, America's favourite editor, Jason.

Dive into the cryptoverse with us on this week's Flagship Friday.

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Flagship Friday 9/27/19



  • Justin Sun seeks Andrew Yang’s attention

    • First off he did announce on Tuesday during a live stream that he's going to reschedule his lunch with Buffett "very soon"
      • of note which I hadn't realized - he had actually invited Trump
      • “Mr. President, you are misled by fake news. #Bitcoin & #Blockchain happens to be the best chance for US! I'd love to invite you to have lunch with crypto leaders along with @WarrenBuffett on July 25. I guarantee you after this lunch, nobody will know crypto more than you!”
    • Then he started making overtures at Yang
      • So apparently this started when Yang announced on debate that he was doing UBI pilot program
      • Yang’s initiative to UBI $1k to 10 ppl per mth for 1 yr, I'll pledge UBI $1k to 100 ppl per mth in 2020! I'll pick 1 to attend lunch w/ me & @WarrenBuffett 2020! I'll let Yang assist me in picking the lucky 100! Join us! #YANG2020 @AndrewYang
      • Mini rant - lots of ways to be and succeed, Credit where it is due. hate him still
  • Bakkt? Yes.

    • What is Bakkt?
    • Owned by ICE (Intercontinental Exchange), NYSE's parent company. Bitcoin futures exchange and digital assets platform opening 2018. Was planning on launching in 2018 but postponed it for a year due to volume of interest and regulatory issues.
    • Bakkt Launched a few days ago. This has been a hinge point for many people on whether institutions are going to go ballistic grabbing Bitcoin Futures contracts.
    • In less than 24 hours they did have $600k in contracts bought. That's actually kinda slow to me.
    • However, the price of Bitcoin went down.
    • Already scammers put up a fake website called BakktLaunch.com for an ETH and BTC giveaway lol
  • 640 Crypto Projects haven't published a single line of code this year
    • Based on a research of 2,000 startups by the Coincodecap project, 640 were completely inactive. (32%)
    • analysis of Coincodecap, which links exchange rate success with code commits, reveals that the assets belonging to the inactive projects have a market capitalization of $415 million.
      • Proton Token with more than $80 million in market cap didn’t push any code since 2018
      • One of the reasons for the weak activity is that creating a new blockchain project can be relatively simple, especially if the token is built over the Ethereum network.
    • Exchanges with most inactive projects
      • Crex24 - 30
      • Coin Exchange - 39
      • YoBit - 62
  • Google's Quantum Supremacy

    • We know Quantum computing is coming.
    • Google partnered with NASA to execute a Quantum computation.
    • They were able to produce exactly one calculation in 3 min 20 seconds that it would take the most advance supercomputer today (Summit) 10,000 years to complete.
    • Here's the tricky thing - this claim was made in a paper on NASA's site, and it was taken down.
    • What does this mean for crypto?
    • Well nothing new really, maybe some of these core dev teams need to work on quantum resistance sooner, but we know it's coming. The timeline, according to the Quantum Devs and big crypto names (charles, Andreas) ranges from 10 to 30 years to crack current encryption.
    • What we do know is that it won't be easy.
  • How Telegram quietly snuck its blockchain past regulators

    • Everyone is super mad at Libra, Congress, EU, everyone clamped down hard
    • Meanwhile, Telegram Open Network (TON)
      • POS network promising to integrate blockchain payments to...365m users...
      • By the end of October no less
    • Even though they raised $1.7B they barely acknowledged it much less talk about it
      • "On September 8, Telegram dumped half a million lines of code for TON, hundreds of pages of new documentation, and a beta"
    • Theres little time to figure out everything, but if they deliver on "high speed and decentralization", it will be the largest blockchain launch in history
    • Check out these quotes
      • German Central Bank - "We do not possess any specific information on TON. That's why we cannot comment on this app.”
      • European Central Bank - “It looks like another crypto experiment, not really an issue for regulators/ overseers at this stage,”
    • Of course TON Labs argues it has to do with the centralized vs decentralized nature of each
      • VP Pavel Prigolovko said "If there is one person who manages the payment system, it is this person who must comply with all the laws and regulations of the regulators, and if there is no central agent, then there is no one to present the requirements to,”
      • The main challenge will be to get enough tech savy Gram holders to become validators. (CryptoPeaStew shoutout and reminder UltimateNodes.io)
        • Supposedly they have developed industrial-grade solutions to run the validation process
    • They're also responding to concerns about Data storage & privacy in a simple way -
      • We dont collect or store data, its decentralized and public, so fully transparent. All transaction details will be public like on any other public ledger
    • Lastly some concerns over BlackMoon
      • exchange whose cofounder, Ilya Perekopsky, is Telegrams VP
      • Already said they will be one of the first to list Grams

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Episode 205 - EOS troubles brewing, N. Korea is all about that crypto, and finally... it's a bird! It's plane! It's the Federal Reserve!

Welcome once again to Flagship Friday! Although one day late, we're still calling it Flagship Friday to keep our tradition alive. Flagship Extended Weekend didn't sound all that nice.

Tune in as Karim and Adam (Brent's got the sniffles :') dive into EOS and its latest scandal, talk about North Korea's crypto project and the Federal Reserve's intervention on the economy, along with some juicy commentary and rants by Karim, our in-house "important things" expert. So if you wanna hear Karim spit some fire preaching and Adam PASSIONATELY agreeing with him, put on your headphones and press play cause this episode is a feisty one. 

Dive into the cryptoverse with us on this week's Flagship Friday.

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Flagship Friday 9/20/19



  • Here Comes The Federal Reserve

    • overnight borrowing rates shot up, forcing the New York Federal Reserve to come to the rescue with a special operation aimed at easing stress in financial markets

      • First wanted to understand overnight rate
        • Amount of cash a bank has can fluctuate a lot based on daily activity, they can have shortage or surplus of cash at the end of the day.
        • Banks with surplus can lend money overnight to banks with shortages to maintain reserve requirements
        • Interest rate that large banks use to borrow and lend from one another.
        • This rate is targeted by the central bank, which is also a participant in the market (lending and borrowing)
        • Since this is the base borrowing rate it can be used as a predictor of short term rates for broader economy. Goes up when liquidity decreases
      • Fed target rate for July? Between 2% and 2.25%. On Monday it hit 5%, which was up from 2.29% previous week, it kept surging until 10% high on tuesday

      • Called an overnight repo operation, where Fed eases downward pressure on markets by purchasing treasuries and other securities

      • Managed to inject $53b into the system
      • One theory was for the stress is a large quarterly withdrawal by US companies to pay Taxes (estimated around $100b total)
      • On wednesday Fed had to pour an extra $75b, so $128b, getting rates to lower to 3% (still above target rate)
      • Bigger pic, we now have a $1 trillion federal deficit so Government borrowing has climbed (Tax revenue decreased because of tax cuts, but bipartisan surge in spending)
  • EOS Troubles Brewing

    https://www.coindesk.com/everyones-worst-fears-about-eos-are-proving-true?utm_source=twitter&utm_medium=coindesk&utm_term=&utm_content=&utm_campaign=Organic

    • A few weeks ago one of it's early supporters, EOS Tribe, a small company that participated in the launch of the first EOS chain called it quits as an EOS block producer. In a post made on Steemit Eugene Luzgin said "We at EOS Tribe have never participated in the game of vote trading and stayed true to our principles, and hence while we leave EOS as Block Producer, we are also free to speak truth and give warnings to the rest." WHOA. Shots fired!!
    • You guys covered in your EOS 101 how there were issues with governance and that it's pretty centralized. 21 block producers at any time that make governance decisions, establish consensus on the chain, and earn substantial rewards. This has always been a concern and now the most technically proficient BPs are receiving little to no rewards at all.
    • Luzgin called it a braindrain. What does he mean by that exactly?
    • Most of the BPs are in located in China
    • May 8th 2019 they burned $167 million in EOS for the worker proposal system, which was a way to fund EOS dapp development
    • EOS NY proposed an EOS user agreement which was adopted y 15 of the 21 BPs at the time but nothing against vote-buying was in the agreement
    • two forks already, Telos and Worbii. Telos has a token cap at 40k and number of innovations to ensure potential BPs actually serve. Worbii created with certain consumer protections and more of a focus on the financial industry.
    • not saying EOS is a sinking ship but touting themselves as the Ethereum killer is a bit much.

Crypto Around the World

  • North Korea Is Building Its Own Bitcoin
    • NK in the early stages of developing its own Bitcoin!
    • Trying to avoid / circumvent sanctions, apparently they had a blockchain conference in April
    • “We are still in the very early stages in the creation of the token. Now we are in the phase of studying the goods that will give value to it,”
    • There are of course other ways for NK to take advantage of crypto
    • In 2018, Jonathan Foong Kah Keong established a company in Hong Kong called Marine Chain that sold digital tokens in exchange for partial ownership of maritime vessels.
      • Hong Kong called Marine Chain that sold digital tokens in exchange for partial ownership of maritime vessels.
    • According to a U.N. investigation, “the platform could be used to generate money for the regime and as a potential means of evading sanctions on shipping by creating a new method of obscuring the ownership of a vessel.”
  • Cubans flock to cryptocurrency to shop online, send funds
    • the roll-out of mobile internet nearly a year ago has opened the way for cryptocurrency transactions,
    • and enthusiasts have multiplied as the currency helps overcome obstacles created by U.S. sanctions on Cuba.
    • Jason Sanchez, 35, was able to start buying spare parts online last year for his cellphone repair shop in Havana
      • Sanchez, who uses Bitcoin to purchase parts not available new in Cuba from an online Chinese store.
    • since Cubans mostly do not have credit cards, many have to ask relatives abroad to purchase them their first installment of cryptocurrency
    • To show how important a lifeline this can be,
      • Several crowdfunding platforms shut down accounts for victims of the tornado in Havana earlier this year, for example, despite donations being legal, simply due to the mention of Cuba.

THAT'S A SCAM

  • https://decrypt.co/9379/sec-files-suit-against-icobox-founder-over-14-million-ico
    • SEC Filed a lawsuit against ICOBox and its founder, Nikolai Evdokimov over an allegedly illegal $14 million in securities in 2017.
    • Sold to more than 2,000 individuals
    • ParagonCoin, which settled charges with the SEC over its own ICO last year made use of the ICOBox platform.
    • ICOBox exposed investors to investments which are now basically worthless without providing investors pertinent info to make informed investment decisions.
    • Of note, ICO Rating, a cryptocurrency ratings site was fined $269k last year for failure to disclose payments received from issuers of digital assets. basically they got in trouble for shilling

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Episode 204 - Binance does an oopsie, BTC transactions hit the billions, and our co-host is heartbroken.

204 big.png

The CryptoBasic crew is back from the dead!

Last week Brent had the amazing idea of recording an episode while sitting on the passenger seat of his car and talking to the rest of us through his mobile data connection, all while recording NOT through an actual microphone, but an external recorder. This trainwreck of a sentence itself should be, I believe, enough explanation as to why last week's Flagship didn't happen. This week however, all's set to go and we're back at it again!

Tune in to find out what's up with plagiarization accusations against Binance, learn about bitcoin hitting the ONE BILLION USD in a single transaction milestone, discover the true identity of Karim's CryptoBasicStalker, and find out why our co-host Adam Levy ditched this episode. Spoiler alert: he's got the heartache blues. 

Dive into the cryptoverse with us on this week's Flagship Friday.

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Flagship Friday (9/13/19)

  • What have we released?

    Interview with Marius

    Interview with CryptoCanary



  • (Someone moved $1 billion in a single bitcoin transaction)
    • Actually happened late last week, there was a 94,504 Bitcoin transaction
      • BTC was at $10,600 so almost exactly 1b at the time
    • Not the largest BTC transaction ever in terms of BTC
      • We had a 194,993 transaction in 2013 (Around $150m at the time)
      • 550,000 in 2011!, but $3 per btc, so like 1.5m
    • Appears to be the first ever billion dollar transaction, and the fee was 0.065btc ($690)
  • Bullish or Bullshit - Binance caught plagiarizing Bit Mex's Documentation on Futures?
    • Binance did have plagiarized documentation that appeared to be taken from Bitmex.
    • Couple things here:
    • CZ Used to work for OKCOIN, Bitmex used OKCoin documentation to create theirs. They didn't copy it, but CZ was the direct report for those that created it.
    • Binance acquired a company called JEX, and they are who they based their Futures documentation off of.
    • They didn't notice that JEX had literally copypasted from Bitmex.
    • CZ Immediately responded with "Shame on us. 😂 Sorry about that. Missed this in the DD process before the acquisition (didn't read the BitMex docs ourselves). Will fix/remove ASAP."
    • No sharpies.
  • (Trump demands Fed to cut interest rates to zero 'or less')

    • Trump has already been complaining that Powel (who he appointed as Chairman) isn't cutting rates quickly enough (last time they cut rates by 25basis)
    • He is even implying that we want negative rates (what are those)


Crypto Around the World

  • New Data Gives Insight Into How Iranians Use Bitcoin

    • Survey conducted by the analytics firm Gate Trade.
    • Out of 1,650 Iranian bitcoiners surveyed in Persian Telegram groups, 25 percent earned $500 to $3,000 a month from working with cryptocurrency
      • More than a third of respondents, 35 percent, earned that income by mining, while 58 percent earned income through trading
    • Iranian market shifting from global exchange platforms to local exchanges and miners

      • due mainly to most centralized exchanges with KYC excluding Iranians
      • Also high use of VPNs & even purchasing of foreign IDs in black market
    • Most respondents were long-term holders, investing in bitcoin with the intention to hold it for more than a year.


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Episode 203 - CryptoConvos: Marius Kramer of Emberfund.io

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We're starting the week off with another exciting interview, as we've got Marius Kramer, number #1 writer on Quora for cryptocurrencies and fund manager on Emberfund! We talk all kinds of bitcoin, and of course, all kinds of shitcoin. Marius shares his insights on today's crypto market and its future, goes over his process of evaluating a project and -get this- goes over ALL of the top 300 coins. All of them. If your favourite kinda-red-flaggy coin is on his shit list... then you're probably gonna have to rethink your investments.

Join Brent and Marius for a trip to the cryptoverse on this episode of the CryptoBasic Podcast!

 

Check out Marius' page on Quora: 

https://www.quora.com/profile/Marius-Kramer

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Quick diclaimer - we are not financial advisors. The CryptoBasic Podcast provides entertainment only. Every investment has inherent risk.

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Episode 202 - CryptoConvos: Kevin Ting of CryptoCanary.app

Episode 201.png

On today's show, Brent is joined by Kevin Ting, co-founder of CryptoCanary, a website focused on consolidating opinions and reviews of various projects in the cryptocurrency/blockchain world, providing users with a community-driven platform for researching before investing. Kevin talks to us about how the platform works, what shapes a crypto project's rating, how they deal with "review-bombing" issues and inaccurate reviews and what the project's near future looks like. If you wanna know how your preferred shitcoin that "will be the next ethereum, bro, I swear" fares against the rest of the space, go to cryptocanary.app. Before you do that though, make sure to tune in to today's CryptoConvos episode!

Links from the show:

CryptoCanary's telegram channel: https://t.me/cryptocanaryapp/

CryptoCanary's website: https://cryptocanary.app/?=cryptobasic

Kevin Ting on Linkedin: https://linkedin.com/in/kevinhting/

 

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Quick diclaimer - we are not financial advisors. The CryptoBasic Podcast provides entertainment only. Every investment has inherent risk.

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Episode 201 - World's first crypto bank, Chinese government crypto, and Craig Wright gets owned in court?!

Episode 201.png

Any Flagship Friday is a happy Flagship Friday when we've got shit to talk about Craig Wright, scamlord extraordinaire, Satoshi Suck-a-moto, the douchebag to end all douchebags. And guess what: this is a happy Flagship Friday. :)

So, JOIN US on this episode to listen to us talk shit about Craig Wright and discuss his defeat in court, something that we've been longing for for quite some time. 

Also, the wonderful People's Republic of China is making a big step towards transparency and democracy with launching its own cryptocurrency! Maybe...! Does something smell fishy...? 

Anyway - all joking aside, on the side of good news we're talking official crypto banks in Switzerland, crypto bird feeders and more!

Dive into the cryptoverse with us on this week's Flagship Friday.

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Flagship Friday (8/30/19)



  • Craig Wright Loses Case again Ira Kleinman

    • A Reporter named Katie Ananina was in the courtroom for the case and was live Tweeting it on Monday.
    • Wright's lawyers continue to argue Wright can't provide proof YET (remember he was moving the goalposts - this time to Jan 21, 2020)
    • They just kept begging for more time in different ways.
    • Kleinman family lawyer gets to recap all CSW lies, including the phrash "Dr. Wright is dishonest. He is a Serial Forger"
    • He even kinda quotes Twain - "The problem with not telling the truth is to remember the lies you previously said"
    • Finally the judge says this "Dr. Wright did not impress me as someone telling the truth. All of his testimonies have been rejected on this matter". Why isn't that perjury?
    • 50% of all patents are given to Dave's estate. 50% of all the supposed BTC is ordered paid as well, which is about 480K BTC.

      https://twitter.com/PeterMcCormack/status/1166086602441068544?s=20

  • Alleged Capital One Hacker Accused of Secretly Mining Cryptocurrency
    • individual accused of perpetrating a massive-scale hack of credit card issuer Capital One
    • hacked cloud customers’ servers to mine cryptocurrency for herself.
    • Exploited the fact that some people misconfigured the webapp firewalls on the servers they rented
    • Online she posted that “if I had a partner I could have them take over my crypto-jacking enterprise and be a stay at home.”
    • Thompson allegedly gained access to 140,000 Social Security numbers, 1 million Canadian Social Insurance numbers and 80,000 bank account numbers, as well as data pertaining to customers’ credit scores, credit limits and balances.
  • World's First Licensed Crypto Bank Seen As Game-Changer

    • Reported from ZeroHedge the co-founders of Sygnum crypto bank have hailed the award of Swiss banking license as a game changer.
    • Could open the floodgates of integration of cryptocurrencies and other digital assets into established financial sector.
    • First time this type of license has been granted WORLDWIDE. Obviously Zug is a crypto hub so the fact that Switzerland is the first country in the world to do this is not a surprise.
    • The Swiss Financial Market Supervisory Authority was skeptical bc they wanted to safely and reliably integrate the worlds of crypto and mainstream finance.
    • Sygnum even created its own digital payment token backed by the Swiss franc.
    • Curious what you guys think about the implications of this
  • Telegram Pushes Ahead With Plans for ‘Gram’ Cryptocurrency

    • Telegram doing their own crypto like Libra
    • Called the Gram, and they told investors they are ready to send out first batches withing a few months
      • Leaked, investors had signed NDA lol, this is anonymous but NYT
    • 200m to 300m global users
    • They raise $1.7b in 2018 but unlike FB have mostly kept project secret
    • A spokesman for Telegram did not respond to multiple requests for comment.
    • "company was created by Pavel Durov, a self-described libertarian who fled Russia after clashing with the government and being forced to sell off his first successful social network, VKontakte.'
    • NYT say they saw a pitch for Gram that said it would be decentralized like BTC so it can skirt government regulations. That they will be governed by decentralized network once released (and telegram no control)
    • Telegram promised in legal documents that it would deliver Grams to investors by Oct. 31, 2019, or return the money!
      • Pre offering btw was 2.89b Gram for $1.7B

Crypto Around the World


  • Chinese Government Crypto? Yes! No. Maybe? Bullish or Bullshit?!?!
    • Forbes - Alibaba, Tencent, Five Others To Receive First Chinese Government Cryptocurrency
      • China's central bank will launch a state-backed cryptocurrency and issue it to seven institutions in the coming months
      • Source was Paul Schulte, independent researcher (head of financial strategy for China Construction Bank until 2012)
      • Industrial & Commercial bank of China, Bank of China, Agricultural Bank of China, alibaba, Tencent, and Union Pay
      • Forbes says it was confirmed by second anonymous source, said it may launch for their big shopping day (singles day, Nov 11)
      • “China is barreling forward on reforms and rolling out the cryptocurrency,” “It will be the first central bank to do so.”
    • Not Launching a Cryptocurrency in November: China’s Central Bank
      • The People’s Bank of China (PBoC) called the coverages “inaccurate speculation,”
      • Reuters attempted to reach all the seven institutions for confirmation. Alibaba declined to comment, while others did not respond.

THAT'S A SCAM

  • SUB Shuts doesn Telegram Group - Co-Founder Deletes Twitter
  • Trevon James Facing SEC Charges
    • This was kinda amazing. The title to HIS OWN VIDEO it this - "Trevon James Facing SEC Charges for Bitconnect | Jail Time?!"
    • The first link in his shownotes is something called Trontopia.
    • Spends a decent amount of the video talking about how he shouldn't have even been able to promote it because he didn't create it so its not his fault he didn't make it.
    • He's not getting a lawyer
    • Top comment on his youtube "Trevon now works for the feds. For life. Watch yo back round here" lolol
    • He has 176 Patrons on Patreon. KIDDING ME??
    • He literally has a video that says "CAN I REPEAT THE SUCCESS OF BITCONNECT ON MY CHANNEL NOW" as his latest release. "I'm gonna try to recreate the huge euphoria of Bitconnect with a Decentralized Application" which then cuts to "Hey its not on me dawg" with throwing his hands up.
  • LA man pleads guilty to $25 mill BTC money laundering scheme
  • 25 year old LA man operating an unlicensed biz. $25 mil exchanged over 2 years. Kunal Kalra, known as Kumar, skeclemayne, and coinman.

Los Angeles man pleads guilty to $25 million Bitcoin money laundering scheme | Micky


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Episode 200 - Hong Kong, Yang Gang, and Scams galore.

Episode 200.png

Today Karim is on a roll with all of his Crypto around the world talk. We go to Hong Kong, Ukraine, and even Russia today.

Learn about the connection with the Overstock.com CEO and a Russian operative, and whether or not Brent would sell state secrets for someone of her attractiveness level. There’s even more to this episode as we go over a long scam that was pretty elaborate, and some other nonsense.

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Flagship Friday (8/23/19)



  • (2020 Presidential candidate Andrew Yang is in favor of blockchain voting) - K

    • Running on Dem ticket, outsider type
    • On his site in his policies he has "modernize voting" section

      • With current tech we shouldn't have to wait in line at polling stations
      • Machines being used are just as vulnerable to tampering/hacking
      • "Americans should be able to vote via their mobile device, with verification done via blockchain. This would dramatically increase participation in all elections, whether local, state or federal."
      • "It is 100% technically possible to have fraud-proof voting on our mobile phones today using the blockchain."

      Modernize Voting - Andrew Yang for President


Crypto Around the World

  • Bitcoin & The Hong Kong Protests - K

    • Going into 11th weekend of protests, 1.7m people marching (about 25%)
    • One of the Crypto ATM providers, Genesis block, giving out water bottles and umbrellas

      • Funded by international BTC donations
      • Bottles themselves have QR code to donate more btc to fund more supplies (rant)

      • Overall ATM providers say they see a decrease in volume (about 10%) and premium price in HK dollars

  • Ukrainian Power Plant Officials Accused of Unauthorised Cryptocurrency Mining - K
    • There is definitely a demand for cheap power, operations setting up in
      • SBU discovered cryptocurrency mining operations at one of the country's nuclear plants
        • alleges that the internet connection installed to facilitate the mining operation posed a significant security risk
        • local court said confidential data about the plant’s operation has also been leaked online.
      • Iceland, thanks to its near-endless geothermal energy
      • Canada - Hydroelectricity
      • Iran - Subsidized energy
    • So the people working at the plant saw a chance to pay no power costs
    • Saw this in Venezuela as well since government subsidizes power
    • A miner in China serving 3.5yrs for stealing energy from a train network for a 50 rig set up (rental near train lines)
  • Moscow's blockchain voting system cracked a month before election - K

    • French security researcher, Pierrick Gaudry, has found a critical vulnerability in the blockchain-based voting system
    • Officials planned on using it for the elections...next month
    • Gaudry figured how to derive private keys from public keys

      • He basically said its because they used a method which uses encryption key sizes that were too small to be secure.
      • Dude's Quote

        It can be broken in about 20 minutes using a standard personal computer, and using only free software that is publicly available

      • We dont know exactly what he could do with the private keys, protocols not in English yet.

      • "In the worst case scenario, the votes of all the voters using this system would be revealed to anyone as soon as they cast their vote."
    • TBF - This was thanks to officials posting it on Github and asking researchers to attack
      • Moscow officials agree key is too small, that it was only for trial period. They said they would go from 256 bits to 1024
      • Gaudry thinks they need 2048
      • And Gaudry will get $15k (1m Ruble)

THAT'S A SCAM

  • Long Story of a Scam - Reddit - B
    • Guy under the username Montana02115 named Dean starts it.
    • User reporting is IdkWutImTalkingAbout
    • Asks him about some project called NKN.
    • Dude says he works with a team that handles private sales of equity for IEOs etc and invites the guy to his Team Speak.
    • Gets welcomed to the research team.
    • Sends a SAFT for a token called Perlin -
      • WTF is a SAFT? Well it stands for Simple Agreement for Future Tokens. This is basically a pinky promise to deliver tokens when something is operational. Since it's "later" it skirts the acredited investor rule.
    • They then ask people what they want to contribute. The people really do send ETH transactions, and are either also scammed or in on it. First one is for 1100 ETH.
    • That's the only transaction he saw, and they said they'd collected 11K ETH so far, so this guy sends 10 ETH, all of his money, and he gets sent a Perlin token. Well it looks like it's a fake token that's been created to LOOK like Perlin.
    • The token even was being held in a Binance wallet, but of course whoever made it could have sent it there.
    • Perlin hasn't had their token generation yet.
    • He brings that up and is instabanned from the group. Then he convinces them to let him back in, and they're doing another one for a token called Sovrin which also hasn't had a Token Gen. They scedule another sale, and he isn't there and gives some excuse.
    • Miraculously no one else is there either so they decide to have it the next day. That day when he said he was low on funds he got banned from the chat.
    • Reddit figured out who the guy was and he created his own subreddit called BinanceIEO
  • List of scams - A
  • Messari.io - B

    • I saw that Cardano joined the Messari Disclosures Registry so it piqued my interest.
    • They focus on transparency for these projects.
    • They also have their own market cap numbers
    • They have a methodolgy for prices and for supply numbers that is interesting.
    • They use - Maximum, Diluted to 2050, Outstanding, Liquid, Ciruculating


  • Shots Fired!

    Andreas -

    The IRS is using very advanced investigation techniques:They have information that leads them to believe I may have crypto-currency.Say it ain't so!Such sleuthing. WOW. PS. I reported and paid all my taxes properly. They're casting a very wide net blindly. Cheap and easy.

  • Patreon

    New Masternode - The Burrito Project

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Episode 199 - HUGE Chinese ponzi scheme, New Zealand’s CryptoSalaries, Moscow’s blockchain and more!

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Join us on another Flagship Friday for your weekly dose of crypto news, shenanigans and goings-on! This week we talk about New Zealand's new step towards adoption, as it legalized using crypto as payment for employees, Moscow's Ethereum-based blockchain designed for transparently functioning city services, and Binance's coins listed for its US platform. Also, Brent never fails to remind us that there are more douchebags in the crypto scene other than Craig Wright, Karim just CANNOT stop buying Cardano and Adam almost died. Twice. Honestly.

Dive into the cryptoverse with us on this week's Flagship Friday. 

Flagship Friday (8/16/19)


  • Barclays ends partnership with Coinbase
    • Relationship began in March last year when Coinbase was expanding in Europe
    • Was mean t to make it easier for users to deposit and withdraw pounds to buy/sell crypto
    • Neither company was down to comment
      • Barclays declined to comment, while Coinbase did not respond to repeated requests for comment
    • Common problem for crypto, one survey showed 3/4ths of crypto businesses in Britain have to bank overseas
      • Even firms that don't handle digital coins, like web designers, just for being crypto associated

Crypto Around the World

  • New Zealand just became the first country to legalize salary payments in cryptocurrencies
    • legally allow companies to pay salaries in cryptocurrency starting September 1
    • The country's tax agency ruled salaries and wages may be paid in cryptocurrencies
      • so long as the preferred digital coin is pegged to at least one standard, or fiat, currency.
      • also requires that the crypto of choice be directly convertible into a standard form of payment.
    • Excludes self-employed workers from switching income into crypto
  • Moscow to Develop a Blockchain System for Transparent City Services

    Moscow officially looking for a contractor to build blockchain system to host city's administrative services

    Announced auction to build ethereum-based system, 57m Rubles ($850k)

    List of services & specs

    • Issuance of documents (property owners, residents, etc)
    • Allocation of slots at city's farmers markets
    • Will use proof-of-authority and max capacity of 1.5m simultaneous viewers (pop 12m)

      They expect it to take 60 days to build once contractor has been chosen & contract signed

      IT Department said it wants to increase confidence in Moscow's electronic services by boosting transparency using blockchain

      Also integrated with other experiments Moscow city gov is undertaking, like "Active Citizen" which lets residents express preferences on matters such as locations of new bike paths, street decor, city events, etc


THAT'S A SCAM

  • PLUS Token, the biggest Chinese Ponzi scheme has scammed 70k BTC and 800k ETH

    • Dovey Wan reported it. PlusToken started in mid 2018 and a "high yield return". Total scammed is about $3B!
    • Core team were tracked down by police 2 months ago and will likely be in jail for decades
    • Exchanges can't do too much bc Chinese exchanges are closed and Chinese police can't work with exchanges bc it's not legal in China.
    • Was reading an anecdote about this - apparently some lady was selling stuff in her shop and taking it or BTC, and tried to convince the user to join because she got 8% on her money every month.

      https://twitter.com/DoveyWan/status/1161693110214090752?s=20

  • CipherTrace Report says $4.26B was stolen in exit scams so far this year.

    • $124M was stolen from exchanges and infrastructure in Q2, bringing YTD total to $227M.
    • $851M was "lost" by Bitfinex before.
    • Those numbers are based on when the theft happens, and thus the values are even higher .
    • We can thank PLUS Token for 2.9B of that big number.
    • Also in the report that's interesting - XMR is only used for 4% of dark markets and even less for ransomware attacks. Oddly Doge is 5th most used in dark markets.
    • The report has a cool list of summary of big events relating to overall market in Q2.
    • Report mentions the big effect of a new Financial Action Task Force (FATF) rule which requires crypto transactions of more than 1k to have identifying information, and speculates there is a way to secure the data except when law enforcement wants it.

  • Mailbag

    intechnicolor (discord)

    just want to ask, as I'm not entirely sure where to ask this, but has anyone had any luck or experience with crypto cards? I'm looking for essentially the equivalent of a debit card. Does it exist yet? I've come across Ternio a few times in my search, as well as (for better or worse) Coinbase's Shift


  • Rants

    Just a reminder that Roger Ver is also a pos.

    Things getting so much better


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Episode 198 - Bitcoin just can't STOP hitting milestones, N. Korea's CryptoMissiles, new exit scams and more!

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What a week for the cryptocurrency space. We've got a brand new exit scam (like we didn't have enough of those already), we've got bitcoin being traded at high volumes in Venezuela, and we've got.. Craig Wright? Again? You bet!

Tune in to find out whether bitcoin is the world's eleventh largest money supply (hint: it is) and discover which four European countries are the most adoption-oriented out of all (you know you wanna invest in Europe).

Dive into the cryptoverse with us on today's Flagship Friday.

Flagship Friday (8/9/19)


  • $200B Market Cap puts it ahead of
    • South Korea, Australia, Canada, Brazil
  • Says Gold is most popular store of value with $8 trillion marketcap, silver $800B
  • This actually comes from Crypto Voices report on Global monetary base
* [Twitter Link Crypto Voices][5]


THAT'S A SCAM

  • VERGE! YESSSSS - Brent
    • It's been a while since Verge signed the biggest partnership in the history of partnerships.
    • Reddit user Flenst posted about this
    • Apparently one entity took over the mining algo MONTHS ago.
    • Basically this actor was able to mine the max allowance for any one address over 3 addresses over the course of a day.
    • Looks like they've gotten around $212k
    • The poster doesn't know HOW the chain is being exploited, only that it is because the exploiter is being smart and being predictable, but not overtly obvious. However he can predict with accuracy how much will be mined with this exploit each day.
    • Verge team member comments that a timeshift could be used to do this...buttttt that was fixed months ago AND that isn't how this attack is being performed apparently. All they did was say how it could be done, not that it was happening or that ANYTHING was.
    • Though apparently there is a different way to work time into the equation, and that could be part of it.
    • sunerok goes into the thread to argue with this guy, and given I can't understand coding language, but I do know when someone is being combative because its easier than proving a point, and that's what he's doing. He also used the word legit.
  • False KYC Leak at Binance DAMN I WANTED THIS Also there's more (Adam + Brent)
  • Apparently during the influx on new users in Feb 2018, Binance used a third party KYC company to help deal with all the new customers and apparently that company had a breach
  • tons of passport photos were posted to a Telegram group
  • hacker demanded 300 BTC (LOL)
  • Binance put an up to 25 BTC bounty out on said hacker
  • hacker has KYC info from multiple exchanges. There was an article on Decrypt about a January "hack" from Binance and Kraken where both exchanges said there was no data breach on their end.
  • Still, people's info appears to be out there so stay vigilant and always be on alert.
  • But wait there's more
  • The hacker was using the pseudonym "Bnatov Platon" and apparently he had been reaching out to coindesk purporting that he was able to hack the previous Binance hackers and that he was a white hat hacker trying to help, but he was asking for money .
  • Coindesk got the transcripts of their entire conversation with this dude and Binance.
  • Remember he thinks he's the good guy and says he hacked the hackers.
  • Hes saying he has 60k images of KYC but has been releasing them slowly on the telegram channel.
  • Platon says that the hack back in May was because of a Binance insider. This insider apparently leaked more than the customer KYC stuff if they exist, including info and passwords.
  • This guy gave over 600 files to coindesk, including metadata, hoping they could "force Binance to tell the truth about the hack"
  • Remember Binance has said these aren't their images because there's no watermark.
  • Hacker talked to the CTO of binance, Ted Lin, and Lin basically said fuck off you're not extorting us. He was all "bruh I don't need the money" but then he kept asking for money (300 BTC). Literally the last thing in the chat transcripts is "then pay me"
  • Binance did offer money for information leading to identifying the hacker, as they had publicly done.
  • So he's been posting these KYC images saying that he's being altrustic and if he needed money he'd sell them on the black market...but also is still demanding his 300 BTC.
  • Explanation I like the best -
  • This took place in England, and here was the court ruling
  • Court decided he couldn't prove that he had a global reputation, nor that it was damaged.
  • Apparently the judge even suggested that CSW was trying to game the system by filing in a jurisdiction that was more likely to award him libel claims. Roger is a Japanese citizen and it should have been filed there.
  • The fine is based on what Ver said, not in the court filing, but what is in there is that CSW lost and DOES need to pay those fees.

Crypto Around the World

  • North Korea funds weapons program with stolen cryptocurrency
    • Originally reported by Reuters which says it saw a confidential UN report
      • NK took estimated $2 billion for weapons of mass destruction program
      • Cyber-attacks focused on stealing from banks and crypto exchanges
      • Report also claims Pyongyang continued to enhance nuclear missile programmes
      • They also used cyberspace to launder the stolen money
      • Experts investigating 35 reported DPRK attacks on financial inst, exchanges, and mining operations
      • Security council has unanimously imposed sanctions on NK since 2006
        • Banned exports including coal, iron, lead, textiles, seafood. Capped oil
  • Top 4 European Countries Ranked by Cryptocurrency Adoption..and more...
    • Switzerland #1!
      • Regulation conductive to growth, Zurich super popular crypto city
      • Survey (online, meh) had 7% of internet users owing crypto, 14% of asset holders
    • Austria
      • Interesting that relative proximity, also 7% internet, 12% asset holders
    • Turkey - 6%
    • Romania - 6%, 14% asset
    • This story got me interested in the Bitpanda Report
      • Conducted by GlobalWebIndex, breaks down European holders
      • What kind of savings/investments do you have with 7 options
      • 120k internet users in 2018
    • Interesting Key findings
      • "archetypical cryptocurrency holder will be a young, highly educated, high-income man working full-time or as a freelancer in a major European financial center, in IT, engineering or finance."
      • 1 in 5 are women, 40% over 35.
      • Crypto holders are more likely to have a degree, but still 54% dont
      • Main factors working together to make people invest in crypto
        • Interest in business and tech, disposable income, inclination to run risks and gamble
        • Openess to risk, pursuit of novelty, and strong sense of economic empowerment characteristics of many holders. (seen in affluent internet users, pronounced with crypto
      • Holders are Concerned about privacy but not particularly so, but more proactive (like using VPNs)
      • Crypto rarely first investment, holders twice as likely to have invested in gold or stocks
      • Last but important
        • "Marketing to cryptocurrency holders should target general purpose social and business channels, but also look to niche sites. Characteristically, opinion leaders and video content are important."

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Episode 197 - Bitcoin milestones, the NBA dabbles in blockchain tech, and more

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Today's show is very very crypto. Not that it isn't generally, but most of the time we tend to touch on other issues too - politics, economics, business - but not today. Today's episode is all about cryptocurrency: we talk about Nano's lightning fast confirmation times, Bitcoin's new milestone of 85% of its total supply mined, as well as Litecoin's imminent halving, with the reward going down to 12.5 LTC per block.

Additionally, a sort of motif is present throughout this entire episode. One not very pleasant, one could say. I mean we've got senator Crapo talking about Bitcoin's resilience one one hand, and a "Shitcoin Futures Index" on the other... everything's a bit poopy. This is not a shitty episode however - and that's for sure.

Dive into the cryptoverse with us on today's Flagship Friday.

Description

Flagship Friday 84 (8/2/19)

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Episode 196 - Flagship Friday #83 - A (Justin) Sunny Day in San Francisco

196 big.png

Another Friday, another Flagship, another excuse to dive into all the crypto shenanigans and goings-on of this past week. What has Justin Sun been up to again and how is it related to the word "chicken"? What do recent stats show about the future use cases of Bitcoin? Could it become the global reserve currency of the 21st century, replacing the gold standard and becoming the basis for a worldwide system of Cyber-Keynesianism or is the person writing this just a closeted bitcoin maximalist? What more could Karim possibly have to say about macroeconomics and politics and what's his new segment all about?

Additionally, today we talk once again about our favorite subject of the month, the Ministry of Truth's cryptocurrency, Libra. Did I say Ministry of Truth? I meant Facebook. Did I quote George Orwell? In the times we live in, can you even blame me?

Dive into the cryptoverse with us on today's Flagship Friday. 

  • Rapid Fire

  • (Story 1) (Adam) Justin Sun is definitely in the news and this is getting murky.

    • A Yahoo article reported that at 3:30PM UTC Justin Sun was not facing formal charges but was not allowed to leave the country. Three hours later Justin was doing a live periscope in SF.
    • He also postponed his Warren Buffett lunch over "health issues"
    • Allegations of illegal fundraising for Tron's ICO back in 2017 but Sun claims he complied with all financial regulators and refunded investors on Sept 20. 2017

      Tron Founder Justin Sun Posts Video Showing Him in San Francisco

      Tron Crypto Founder Accused of Money Laundering & There's Much More To It

      Update (K) -

      Lol So he says kidney stones, then Chinese media outlet Caixin - nha gov is looking at him for money laundering, illegal fundraising, and pai wo shadiness.

      He posts on Weibo

    • It originated because I admire Buffet and his love of charity, and wanting to promote blockchain

    • now says his own “selfishness” and “immature words and deeds” detracted from the effort.
    • his “mouth” got in the way of his good intentions
    • He refers to his own efforts as “failed over-marketing, which has generated a lot of consequences that I completely did not expect.”
    • To be clear he did pay the money
    • He's scared tho from what he wrote, apparently Caixin is aligned with gov and taken very seriously, and this type of thing can be a "call out"
      • In the past few weeks, I had my darkest moment with sickness and tiredness. I suffered the biggest drama ever in my life from people’s doubting and questioning.
      • I bought the Warren Buffett lunch because I admire him a lot and I have a huge passion for charity. The original reasons are good and simple. I cannot deny that I want to promote blockchain related business at the same time. However, because of my immature words, behavior, youth, and vigor, I spoke without thinking twice.
      • He praises Caixin for being a great journal, helping reform, being media teachers
      • "For the elders, leaders and regulators who care about me, I would like to express my sincere apologies to my premature marketing and words and deeds! I am deeply afraid of the adverse effects caused! I am young, not deeply involved in the world, and the blockchain belongs to the emerging industry. I am immature. It is the big pattern of the elders of the regulatory agencies and their great vigilance makes me understand the importance of social responsibility and social influence!
      • he praises Chinese socialism and the reform and just tries to appeal to the party
  • (Story 2) Discussion: Attorney General Barr speaking out against encryption

    https://apnews.com/7423e1ef65a144e6a47e4da63683b3c1

    • There have been some articles here and there about this and it keeps popping up. AG Barr spoke at a cybersecurity conference to push tech companies to provide law enforcement with access to encrypted devices. What are your takes on this
    • (Story 3) Bitfinex & Tether Respond to NYAG Allegation
  • Bitfinex’s general counsel Stuart Hoegner disputed the NYAG’s accusation that New York residents were using the platform for longer than previously stated by saying it “contains a number of inaccurate and misleading assertions”.
  • It also ceased trading in 2017 and that no NY customer has been identified.
  • Bitfinex & Tether claimed these allegations were misleading.
  • They do not transact with any NY ECPs (eligible contract participants) and are claiming any reference to NY-based trading or virtual currency firms refer to foreign entities.
  • They are also claiming they have not been proven to be a commodity.
  • (Story 4) -
  • (Bitcoin Not Moved for at Least Five Years is at an All-Time High)

    • Summary of Findings from Coin Metrics' State of the Network: Issue 9
    • The amount of Bitcoin (BTC) supply that has been untouched (i.e. not transferred) for at least five years recently reached an all-time high.
    • Store of value > medium of exchange?
    • Chart

    • Even tho supply keeps growing, percentage also ATH at 21.6%

    • Untouched supply tends to mirror Price movements

      And Bitcoin really is special compared to the rest, price change stable while others getting slaughtered.

    • "Several narratives explain the strong relative outperformance in bitcoin over this period"

      • US Regulators
        • This year Poloniex, Bittrex, and Binance all started restricting US traders in certain markets
        • June SEC filed a suit against Kin, CFTC investigating Bitmex, Libra panic
        • Theory is this drives traffic to btc since it gets most "regulatory charity" (we did see this with people praising btc)
      • Geopolitical
        • heightened geopolitical tensions and a growing acceptance that Bitcoin serves as a digital store of value and hedge in uncertain times
        • US-China trade disputes, increased threat of disruption of oil supplies in Middle East, Euro-zone fragmentation risk, tensions in Hong Kong, etc
      • Macroeconomics
        • Environment has shifted towards monetary easing
          • real interest rates down in most major developed countries, on all terms
          • Pockets of weakness in forward looking macro indicators (probably talking about the yield curve for for example) has people expecting recession
          • "It now seems nearly certain that the four major central banks of the world (the Federal Reserve, the European Central Bank, the Bank of Japan, and the People’s Bank of China) are on the cusp of another monetary easing cycle"
          • As interest rates go down, opportunity cost of holding non-yield asset declines
          • And since rates are so close to zero, theyll probably have to do some "unconventional" monetary tool like QE
  • Shots Fired!

    Ramesh Gopinath on LinkedIn: ""What's important is that Food Trust is a community approach. Farmers, breeders, logistics providers, supply chain participators, retailers - they are all putting their best efforts together." https://lnkd.in/egWA-wk #supplychain #foodtrust #foodsafety #blockchain"

  • NEW SEGMENT - DOES IT MATTER? (k)

    Survey finds adults couldn’t care less about Facebook’s Libra ‘cryptocurrency’

    1799 US adults

    Interest

    Do you trust FB?

    Compare trust for Libra vs Btc

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Episode 195 - CryptoConvos - Colin Fausnaught of ZuckBucks

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On today’s show, Brent is joined by a fellow Facebook-hating, privacy-loving comrade, namely Colin Fausnaught, creator of ZuckBucks, a memecoin designed as a joke and a protest to Facebook’s ever-growing need to have its greedy tentacles probing into more and more aspects of people’s lives - this time the financial one, with Libra. 

Colin created ZuckBucks on a whim, but never expected that it would actually blow up, gathering a dedicated community around it and even making it onto exchanges. Listen in as we talk about privacy, altcoin specifics, meme economies and the all-seeing eye of The Zucc. 

Get you some ZuckBucks - https://docs.google.com/forms/d/e/1FAIpQLSeFBYZIoCtyNQnfzegzLnJTOk6FD37FwbrCQjo2sEKOhXFrJg/viewform

ZuckBucks Website: https://zuckbucks.cash/
ZuckBucks on Twitter: https://twitter.com/ZuckbucksToken
Zuckbucks on Telegram: https://t.me/zuckbucks
The official ZuckBucks Discord channel: https://discord.gg/U5y8qDV

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Episode 194 - Politicians Weigh in on Libra

Today we’re getting super political, so Karim is all excited. Don’t worry, we’re talking about it being related to Crypto. The House had a hearing and we break down some opinions of some people in Congress. We also go on to talk about a couple of scams from across the globe. It’s Flagship Friday-ish on the CryptoBasic Podcast.

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Episode 194 - Flagship 82

  • Rapid Fire
  • All Kinds of US Policiking about Libra.

    This was 7 hours long.

    • Donald Trump - (R) Does not like BTC (no obvious opinion on Libra)
    • Tom Emmer - (R) Anti Libra, seems to be pro BTC "Individuals insistent on the exclusion of middlemen and the freedom of the individual will continue to create open networks separate from central control. Unfortunately Libra is not designed to minimize middlemen. It in fact relies on them."
    • Kevin McCarthy - (R) Anti Libra, pro BTC "I like bitcoin "Likes decentrlaized nature of BTC "I want to see decentralization because Libra concerns me that they're going to control the market"
    • Ron Paul - (R/I) Pro Crypto, No stance on libra.
    • Treasury Secretary Munchin - Pro Crypto/ BTC, and says Treasury is OK with it with full AML. He was not comfortable with Libra, but was not anti-Libra.
    • Denver Riggleman - (R) He knows his shit. Started right away asking questions about open source, whitepapers, he actually looked at the code and knew that it was written in Rust. Dude checked Github, mentioned who was building the Libra core, asks about scalability issues and why Rust was chosen as the language. Specifically grilling him about the "nightly build" of Rust and why it was being used. David Marcus couldn't actually answer that.
    • House Democrats released a bill called "Keep Big Tech Out of Finance Act" which was anti - Libra, but not pro BTC/ Crypto.
    • Patrick McHenry - R - Skeptical of Libra - Clearly Pro Crypto - Did not take a clear anti Libra stance. Said it could be a plot to increase Twitter presence lol.
    • Warren Davidson said - There's bitcoin and there's shitcoin. (R) Unclear stances

      Colloquially, Shitcoin

      • Wednesday, July 17th 2019 a Congressman asked Meltem Demirors about shitcoins. How is this real life????
    • Brad Sherman - D - Anti Libra, calls it Zuck Buck. Very Anti-Crypto. Anti Crypto, compares it to “We’re told by some that innovation is always good. The most innovative thing that happened this century is when Osama bin Laden got the innovative idea of flying two airplanes into towers,” Says Libra is more dangerous than Al Queda.
  • (Market Cycles)500

    • Lets talk about the psychology of a market cycle.
    • Disbelief, hope, optimism, belief, thrill, euphoria, complacency, anxiety, denial, panic, capitulation, anger, depression, disbelief
    • Simplified market cycle - peak,trough, contraction, expansion

  • (Tether’s $5 Billion Error Exposes Crypto Market’s Fragility)

    • A little reminder that this is still a young market with an infastructure in construction
    • Saturday (7/13) Tether mistakenly created more than $5b in an instant, (marketcap rn $3.9b)
    • Article claims sudden flood spooked the market & btc dropped by 12%
      • About 60% of BTC trading is done with Tether
    • And we've already had the NY AG saying Tether used reserves to cover up $850m in missing funds
    • Basically Poloniex needed to move $50m Tether from Omni network to Tron
      • LOL - The Tether EMPLOYEE who processed the order accidentaly created and sent Poloniex $5b Tether instead of $50m
      • CTO Tweeted it was "an issue with the token decimals, fat finger error"
  • Crypto Around the World
    • U.S. foes are weaponizing cryptocurrency says new report
      • New Study by the Foundation for Defense of Democracies (FDD)
        • Says US adversaries are using crypto to "circumvent the nation's geopolitical supremacy"
        • Focused on Venezuela, China, Iran, and Russia
        • All of these have been aggressively working on blockchain currencies or networks
        • Venezuela backed with oil, Iran is launching one backed with Gold
        • FDD warns that digital currencies, especially those backed by commodities, will make sanctions much harder to enforce
        • Most worried about China, with massive tech its digital currency could compete with dollar based financial system
        • Also fears that nations will just invest in current systems, like Russia is believed to be investing in btc
      • Found the Report itself, Overview of findings
        • Venezuela, Maduro, & the Petro - Total debacle, they did not build the economic or technical infrastructure to make the petro useful to citizens and international trading partners. But it will serve as case study for other nations
        • Basically how the US financial dominance is at risk if any crypto becomes popularly used and an alternate financial infrastructure is created
      • But who is the FDD
        • That name already sketches me out big time
        • Washington THinktank focused on "national security and foreign police" (not exactly what you would think of but maybe)
        • Their own about
          • Founded shortly after the attacks of September 11, 2001, FDD conducts actionable research, prepared by experts and scholars from a variety of backgrounds
        • Started looking at their headlines
          • Undeterred Cyber Adversaries Require a More Aggressive American Response
            • As tensions escalate, U.S. must intensify pressure on Iran and the IAEA
            • Australia should place unilateral sanctions on Iran
            • Oman’s Growing Ties with Iran Threatens its Neutrality: FDD Report
      • Long story short - they're just a neocon think tank, hawkish and super pro war. And their funding explains their bias, from their 2011 tax filings
        • "Most of the major donors are active philanthropists to 'pro-Israel' causes both in the U.S. and internationally. With the disclosure of its donor rolls, it becomes increasingly apparent that FDD’s advocacy of U.S. military intervention in the Middle East, its hawkish stance against Iran, and its defense of right-wing Israeli policy is consistent with its donors’ interests in 'pro-Israel' advocacy"
  • Thats a scam!

    • For $15k You Can Fake Trading Volume

      A 20 year old at Moscow State University, Andrey Andryunin, (Let's go MSU!!)

      talks about his company that he co-founded called Gotbit. It inflates trading volume on obscure crypto exchanges for a fee to ultimately get listed on Coin Market Cap. Programs a bot to trade tokens back and forth with each other (what do we call that Karim??) wash trading.

      Exchanges know about it but don't care too much to stop it.

      Hotbit based in Shanghai and BitForex out of Hong Kong are two exchanges that Gotbit uses. Gotbit was found to be one of 14 exchanges that basically had zero genuine trading outside of wash trading in a report by Alameda Research, a crypto trading firm.

      A lot of the coins are top 300-500 market cap trying to appease their investors, maybe make an exit eventually, but ultimately only 2 or 3 of the 30 or so Gotbit clients have a working business model and have reached the point of building an actual product.

      Adryunin does go on to say that this isn't exactly an ethical business and that if this was on NASDAQ he knows it would be a financial crime. Both him and his cofounder understand there is incoming regulation from the Financial Action Task Force which will regulate crypto related services and exchanges so they are pivoting to other more legitimate things like offering IEOs

    • NovaChain

      • Had no idea what it was.
      • It was yet another Lending platform that was based off of "High frequency trading bot passive income"
      • Deleted its website and email list and all social networks.
      • Loss was in the millions.
      • Twitter users were tweeting tons of numbers.

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Episode 193 - Was Tron Raided? Is McAfee making crypto for Cuba?

Flagship Friday! We're talking about John McAfee and what he wants to do for Cuba. We cover whether or not Tron headquarters was raided by the police, and this particular episoe without Adam we talk about a lot of different tangents, and more.

Ledger Nano S - The secure hardware wallet

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Episode 193 - Flagship 81

Crypto Around the World

  • (World's Top 10 Companies are American)

    • Interesting article from May in Investopedia (source bump)
    • Reminder that these are really global companies now days
    • List

      Apple, Alphabet, Microsoft, Amazon, BRKA, FB, JPM, BoA, JnJ, Exxon

    • So why are these companies dominating market-cap?

      • US Equities have been crushing (outperforming), the Dollars strength (trade-off profile), and Mega-caps usually trade at a premium
    • Lessons from History
      • Late 1980s, Japanese companies dominated ranks of global firms. Yen was strong and Nikkei index blew way up
        • Still hasnt recovered btw, (21.5k vs 37.8k ATH)
      • Late 1990s, .com tech boom had US dominating largest companies. The 2000-2002 bear market had SP500 down 45%, NASDAQ almost 80% at worst
      • In 2007 with a strong Euro many EU was challenging US for most megacaps (didnt surpass), but then Great Recession happened
      • China lost some spots on the list due to tariffs
  • Turkey's New Economic Roadmap & Cryptocurrency
    • "11th Development Plan" submitted to the Turkish Parliament July 8th
      • This Covers 2019-2023
    • Here are some interesting parts -
      • a “Mcblockchain-based digital central bank money will be implemented,”
      • That they will create a legal and technological infrastructure in an effort to use blockchain for "transport and customs"
      • Tbf apparently blockchain gets thrown around a lot, like in the AI section and IoT for public services (prob just want to techno-babel by legislators)

THAT'S A SCAM

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Episode 192 - Loser.com and more.

Episode 192.png

Craig Wright cryies in court, thus proving he is Satoshi Butthurtamoto. . We go over tons of stories from across the globe, including what’s happening with Facebook’s Libra in China. Our friends Waltonchain make another cameo appearance in our “That’s a scam” Section, and we learn how Adam almost lost $10k by being cocky.

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Episode 192 - Flagship 80

"Local Forecast - Elevator Kevin MacLeod (incompetech.com)

Licensed under Creative Commons: By Attribution 3.0 License

http://creativecommons.org/licenses/by/3.0/"

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The members of the CryptoBasic podcast are not financial advisors, and this information is provided for entertainment purposes. Please do your own research, and don't listen to these idiots.

The CryptoBasic Podcast is owned and operated by Cipher Consulting Group LLC.