CryptoBasic Podcast

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

Episode 163: EOS, Coinomi, and Japan Over/Under

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Episode 163

Date of Release: 3/1/19

  • What have we released?

    Substratum Delisting Round Table

    Interview #2 with Luke Mulks from Brave

  • Rapid Fire

    NASDAQ BTC and ETH indices went Live.

    Elon Musk says whoever owns the early BTC deserves a Nobel prize in delayed gratification. But he still only owns .25 BTC so don't get too excited.

    Cryptopia releases its final hack estimates at 9.4% of its total assets. Maybe there's hope?

    There was a sweet bull market as BTC rose above 4k. ANNNNND It's gone.

    BAT Announces partnership with TAP Network

  • Coinomi Wallet situation

    Coinomi Response

    • A reddit named Warith Al Maawali came forward with claims that his entire life savings was lost on Coinomi. He isn't the only reddit user, there's 3 others that all had the same thing happen.
    • Coinomi is a wallet for anyone not familiar. Their tagline is "Your Trusted Blockchain Interface"
    • He actually made a website that has all of his proof, screenshots, research, and findings.
    • The end result is that they were sharing your passphrase with a third party on Google's servers, for spell checking purposes. In plain text. Coinomi claims that it wasn't plain text, and that it was encapsulated inside a HTTPS request.
    • The user claims that this can only be exploited by whoever created the exploit or anyone else that uses the backend at Google. Coinomi only says Google.
    • They also say that it was only if you restored a desktop wallet. Also it totally wasn't a bug in their code (what?!) it was a plugin issue.
    • Based on the screenshot of their e-mail, they did in fact admit that this was a problem. They even told the user he was eligible for a bounty, but they haven't taken any responsibility (at this time) to give him his crypto yet.
    • This guy says he did everything right - he had it only running on a virtual machine behind a firewall with Anti-Malware and Anti-Virus protection. It was still compromised by a bug.
    • They even went as far as to say "Don't worry we've blacklisted the funds they'll never get to exchanges".
    • Guess what? The code wasn't open source.
    • Coinomi also suggests he saw the problem and stole his own funds, and say that he was holding them ransom by threatening to go public. They also mention Luke Childs, Jonathan Sterling going public with their findings as irresponsible. (again what?!) They call him a blackmailer. They also admit there's an issue.
    • Coinomi released the entire chat log of their support ticket. Warith was a dick, but they were asking him for a bunch of dumb shit and stalling too.
  • Over-Under? Money Laundering Cases in Japan Involving Crypto

    • December last year Report suggested Japan had over 6,000 money laundering cases involving cryptocurrency in first 9 months of the year (+1000 from regualtors). 7096
    • Between Apr-Dec 2017 only 669 cases so 10 fold increase
    • What % of Japans money laundering cases in 2018 do you think that 7096 represents?
    • SPOILER

      • DONT PEEK =)

        1.6%, 417,465 Cases

  • Bullish or Bullshit - Epic Games (Fortnite) CEO Shows Support for EOS on Twitter.

  • Well, since we're on the topic of EOS - Two Stories

    • Their Github commits have gone wayyyy down.
      • Longhash reports that less than 3% of their total commits have happened in the last 3 months.
      • 4000 commits in a year - but 114 in the last 3 months.
      • This isn't unique to EOS, it's just way worse there.
      • ETH is at a 20%ish ratio, and Tron is at around 15%.
      • One argument - they don't need to update as frequently because the blockchain has matured.
    • EOS has failed to build a Byzantine fault tolerant blacklist, so someone stole $7M
      • So basically, in order to blacklist bad actors there's a centralized authority called the ECAF. The ECAF wasn't democratically elected, they were just assigned at inception.
      • I assume that's the "power vested in me" people.
      • Basically the 21 block producers were getting annoyed at all the blacklisted addresses that were being submitted and decided it wasn't salable, so they were looking for an alternate solution.
      • Apparently, this was a vulnerable solution if even ONE of the 21BPs incorrectly setup their blacklist. Games.eos did set it up wrong. So one of the blacklisted accounts with around $7M US was able to spread that money around indiscriminately.
      • ONE
      • So much for that.
      • So what's their solution? They don't have one yet, but they're considering nulling out the keys on blacklisted accounts.
      • Apparently they've discarded the ECAF - and are getting a new one.
  • Well, since we're on the topic of EOS - "Another Story Ft. TRON & Sun"

    • Chinese Government body ranks TRON 2nd Best Cryptocurrency...behind EOS.

      • Story starts with a tweet from Sun braging about the rating from The Center for information and Industry Development (CCID)
      • Apparently some of this rating is because of TRONs large transactions per day & tps
      • Appropriate Vitalik Quote

        "When a blockchain project claims ‘We can do 3,500 TPS because we have a different algorithm,’ what we really mean is ‘We are a centralized pile of trash because we only have 7 nodes running the entire thing.’”

      • Upside should be getting lots of Dapps and apparently TRON going aggro on it spending $100 million on TronArcade and launched a "$2 billion initiative called Project Genesis" to grow its Dapp market.

  • One more before Mailbag.

  • Mailbag

    What are your top useful use cases and top useful projects as of February 2019? in the sense that they're providing value to the crypto space just by developing and/or don't look like they'll collapse in a strong breeze. thebiggerboat

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.