Ep 221: Global Unrest Spurs Gold/Crypto Spike, SEC May Suspend Token-related Stocks, Burger-backed Crypto Options Sizzle

Global unrest spurs gold/crypto spike. SEC may suspend token-related stock sales. Signs of trouble at STORJ. DASH partners with Arizona State University, temporarily halts InstantSend. Darren’s Bitcoin Cash update. WhopperCoin announced for Russian burger lovers. Coming soon to Thailand: the McWallet? Russian bank partners with Ethereum Foundation. Moscow Stock Exchange embraces crypto trading.

We’ve written out short overviews of the topics discussed on today’s show below! Be sure to listen in to the whole podcast to get more information, insights, and thoughts on each of them from Darren, Pedro and JJ!


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Traditional Financial Markets Cryptocurrency Markets
Gold $1,308 Bitcoin (BTC) $4,543
Silver $17.37 Ethereum (ETH) $376
Oil $45.96 DASH $365
Dow Jones 21,892 points Litecoin (LTC) $62.41
30Y UST Yield 2.74% Bitcoin Cash (BCH) $569

Gold, Bitcoin Prices Rise After North Korean Missile Flight Over Japan

The latest provocation from North Korea, a missile test flight over the islands of Japan, may have spurred an increase in the price of gold as well as crypto. The missile flew well over the island nation and landed in the ocean. North Korea state media claims the next missile will go to Guam. U.S. President Donald Trump warns the next missile launch will be met with ‘fire and fury’.

War and conflict typically drive up the price of gold, as the risk of an investment is outweighed by the relative safety of gold. This could also help explain the rise in the price of Bitcoin and other cryptocurrencies.


SEC May Suspend Trading Of Stocks For Companies That Engage In Token Offerings

The US Securities and Exchange Commission has released an alert concerning stock trading suspensions for businesses engaged in token offerings.

On August 28, the US Securities and Exchange Commission (SEC) issued an investor alert, warning about potential scams relating to token offerings, and discussing potential trading suspensions.

In the announcement, the SEC said it may suspend the trading in a stock in order to protect investors and the public interest. Specifically, the SEC stated that trading suspension may occur if there is insufficient information about a company, such as if a company fails to file extended or periodic reports, or if there are questions over the accuracy of publicly available information, including press releases and company reports. Also, if there are questions about the trading of stock, such as possible market manipulation, ambiguities about the stock, or the ability to settle and clear transactions in the stock, suspension may occur as well.

According to the alert, “The SEC recently issued several trading suspensions on the common stock of certain issuers who made claims regarding their investments in ICOs or touted coin/token related news. The companies affected by trading suspensions include First Bitcoin Capital Corp., CIAO Group, Strategic Global, and Sunshine Capital.”


Storj and the Development Well

Last week, there was a story published where someone was attempting to use the STORJ network. The author successfully uploaded a photo and then got stuck uploading a 5 GB file. He also attempted to run STORJ without the central server and that didn’t work at all.

This came after their main developer, Bookchin, left the team citing issues with the remaining leadership. Looking at GitHub activity logs, Bookchin seems to have done most of the coding.

Back in May of this year, STORJ ran an Ethereum token sale raising $30 Million, and since that time the Github activity has died down to almost nothing. With Bookchin gone, they are looking for more developers. Note that this isn’t a concrete judgement of STORJ, but rather a cautionary advisory that they may be in trouble.

This story is bigger than just STORJ and includes many newly funded projects. The gap between the ICO and the finished project is the development well. Getting the core software operational, getting the user interface functional, and bug fixing can require massive amounts of time. The more complex the project is, the longer it will take.

This development well can trap some projects, dooming them to failure or excruciating delays. Money alone isn’t going to magically solve problems. Having good and respected leadership is key. Having good developers is key. Having a good strategy is key. And there are more keys.

Think about it this way: a new blockchain or token project has to basically create a fully functional business. Leadership, accounting, public relations, marketing, legal, and human resources all need to be addressed and handled well.

It’s not just the people who gamble on the ICO or token sale that need to be cautious. Many projects are and have been in the development well for a while — and some still have nothing to show for it. If you do choose to gamble, be sure to do some research first.


DASH Partnering with Arizona State University

Building the future of money requires that more people learn how to build and maintain blockchain technology. DASH is partnering with the ASU engineering department to build the Blockchain Research Lab.

“Dash is the blockchain for the masses, and it’s impressive for several reasons. The instant transactions (InstantSend) is a very important feature that meets the most demanding need of practical business applications.” —Dragan Boscovic, technical director of the CASCADE research lab at ASU


Darren’s DASH Update: Instant Send Currently Disabled

We’d like to inform you that with help from the community, we have discovered a potential exploit in the current InstantSend implementation which provides the chance for an attacker with 6 or more Masternodes to dominate an InstantSend quorum by brute forcing collateral transaction hashes in a certain way as to increase their chance to be selected for an IS quorum, which could provide the possibility to perform a double spend or a potential network fork.

We have not yet seen this attack executed on our network and we believe the risks are low because the exploit requires ownership of at least US$ 2.1 million in Dash. However, for safety we have disabled InstandSend via [“SPORK_2_INSTANTSEND_ENABLED”: false] to ensure this attack cannot be performed until the fix, which is already completed, is released to the network.

As 12.2 release is imminent, our intention is to include the fix as part of the 12.2 release process, which is estimated within the next few weeks, instead of releasing a hotfix immediately, to minimize the disruption in the coming network upgrade.

As a result, any InstandSend transactions made before 12.2 deployment will fallback to normal confirmation times, therefore users are advised to refrain from selecting InstantSend on payments in wallets until 12.2 to prevent being charged the higher fee.

We’d like to thank two community members, Matthew Robertson and Alexander Block, for helping to discover this exploit. Consequently, after a post-mortem, our conclusion is that the exploit was missed internally due to the fact that we did not provide enough review of early InstantSend code, with everyone in our (much larger) team today being focused on V12 features and our forthcoming V13 Evolution release.

As a result, we have been conducting an internal security audit of earlier code which hasn’t found any further explots and we are also seeing the Dash community becoming much more active in contribution and code review, from new contributors to the recent $240,000 BugBounty program funded by the network, which we believe together will ensure that enough ongoing review is being provided to find and secure any future exploits quickly and comprehensively to ensure the Dash Network remains secure.


Darren’s BCH Update: Bitcoin Cash Settles Down, Calm Before the Storm?

This week there was a Emergency Difficulty Adjustment that caused Bitcoin Cash to be more profitable to mine. The lower difficulty period was burned through as almost half the miners jumped on to mine Bitcoin Cash.  After this period there were more Emergency Difficulty Adjustments. A Chinese Miner, BTC.top, mined a few blocks to prevent the Bitcoin Cash difficulty from dropping low enough to be profitable. Currently, there are enough miners on the Bitcoin Cash Network to mine a two to four blocks an hour. Bitcoin difficulty is expected to go up in less than a week. Less than two weeks after that I would expect the Bitcoin Cash difficulty to drop so that it is more profitable to mine than Bitcoin. This looks like it could be the calm before the storm.

Interestingly enough there have been several blocks mined over 1MB today.  There seems to be something funny going on with someone producing large (> 1kB) transactions. However, the Bitcoin Cash chain keeps on humming despite many blocks over 1MB. One funny thing I’ve noticed is that the addresses in some of these transactions are used on both sides of the fork. That is, the same address is being used for Bitcoin and Bitcoin Cash.


WhopperCoin: Waves Platform Hosts World’s First Burger-Backed Crypto

The future has arrived! Burger King of Russia has partnered with the Waves Platform to issue WhopperCoins. Customers will receive 1 WhopperCoin for each ruble they spend at Burger King. Once they have collected 1700 WhopperCoins, they can redeem them for a Whopper at a participating restaurant!

With all the claims about currencies being backed by an asset I am always left asking, “where can I go to redeem this for that?” Well, with WhopperCoin it would seem that I can at least exchange it for a meal.


And OMG, a McWallet, Too?

OmiseGo (OMG) founder and CEO Jun Hasegawa announced on Twitter that their relationship with McDonalds of Thailand has been finalized. Fast food lovers in Southeast Asia won’t have to visit Russia if they want to buy fast food with crypto — it looks like they may soon be able to stay home and use their McWallets!


Russia’s Vnesheconombank To Develop Government Applications For Blockchain Tech With Ethereum Foundation

Ethereum co-founder Vitalik Buterin and Vnesheconombank Chairman Sergei Gorkov signed a partnership agreement between the bank and the Ethereum Foundation.

On August 29, 2017, at a ceremony that took place during the “Blockchain: New Oil of Russia” conference, Russian state-sponsored development bank Vnesheconombank and the Ethereum Foundation entered into an agreement to work together to develop a distributed registry and Ethereum platform, grow an expert Ethereum community, and implement training and educational programs at Vnesheconombank’s Competence Center, Which is set to open in September 2017 at the National University of Science and Technology in Moscow.

Speaking about the partnership, Vitalik Buterin, who signed the agreement on behalf of the Ethereum Foundation, said, “Cooperation between Ethereum and VEB gives a unique opportunity to engage in research and development on the use of blockchain technology for public administration and accelerate the adaptation of this technology to government organizations in the Russian Federation.”


Moscow Stock Exchange Welcomes Crypto-Currency Trade

You will soon be able to trade digital currencies against paper currency on the Moscow Stock Exchange — if you’re a qualified investor, that is. In doing so, Russia is the first stock exchange to make crypto-currency a new investable asset.

Russia’s Deputy Minister of Finance, Alexei Moiseyev, told Rossiya 24 on Tuesday that the RTS Micex was only allowing for qualified investors to trade in crypto-currency in order to avoid large money laundering operations. Qualified investors in Russia need to have at least six million rubles in personal assets or 200 million rubles for investment firms.

“Recognizing the extraordinary popularity of crypto-currencies among Russian users, some of the Russian regulators are lobbying for a permissive rather than a prohibitive approach to the new technology,” says Anar Babaev, co-founder of ICOBox in Moscow. “They are cautiously moving towards adopting new laws to embrace blockchain and make it a national priority,” he says. ICOBox helps companies standardize the ICO process, which is the IPO of the cryptocurrency and blockchain developers’ new virtual world.


An Important Disclaimer

We would like to remind you that any content on the Neocash Radio podcast and/or website should not be regarded as financial or legal advice. Please be mindful of any and all regulations regarding cryptocurrency in your particular jurisdiction. Never invest/gamble more than you are willing to lose and always safeguard any digital currencies you own by keeping them in a wallet whose private keys you control.

Contact Us
JJ – jj@neocashradio.com
Co-Founder, Producer, Managing Director

Darren – Darren@neocashradio.com
Co-Founder, Technical Writer

Pedro – pedro@neocashradio.com
Ethereum and Crypto-mining Expert

Randy – randy@neocashradio.com
Former Co-host and Cool Dude

Tips Appreciated!

BTC Address: 1MmFwDeZPgxJ4GyzbfmZVLJv3aZcpxSfR5
ETH Address: 0xe4689EF88F239C6eed1Ff262876e2499495c1617
DASH Address: XtLEPo6DKeu45e2czdHLEb5EzJRVDz2aLZ
NXT Address: NXT-TT49-WV65-HZJA-5EJF9
BCH Address: 173ADKUvvRcSmb9tnKiYAMQAoB6RhsgQQd

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