CryptoBasic Podcast

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

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

198 big1.jpg
Ledger Nano S - The secure hardware wallet

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."

Please join the conversation in the Discord. We're in there all the time.

Rate us on iTunes.

Follow CryptoBasicBrent on Reddit.

We are not Financial advisers.

HELP SUPPORT THE PODCAST!

SUBSCRIBE TO THE SHOW

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.