Tag Archives: warning

Beware EOS and NEO

Both EOS and NEO have been billed as the ethereum-killer and both have had concerted hype machines behind them. They are both building smart contract blockchains that hope to offer the same level of service as the current Ethereum Public Blockchain but with more throughput. Scaling is the buzzword of the month and EOS and NEO aim to achieve higher transactions per second by using a delegated proof of stake or delegated Byzantine Fault Tolerance method.



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Delegated proof of stake is a system where a limited number of Block producers actually stake coin to validate and create blocks. In the case of EOS the Block Producers is set at 21 initially. Those 21 nodes stake EOS coin and are granted the privilege of creating blocks and capturing the block rewards.

EOS coin holders can vote for which nodes are staking through a 1 token = 1 vote method. Now these EOS coins should not be confused with the EOS ERC20 token. The EOS website is very clear “The EOS Tokens do not have any rights, uses, purpose, attributes, functionalities or features, express or implied, including, without limitation, any uses, purpose, attributes, functionalities or features on the EOS Platform.”

Those that have bought the EOS ERC20 may have very well been scammed out of their ethereum.

NEO is using a slightly different consensus method call delegated Byzantine Fault Tolerance. This refers to an agreement problem involving trusting third parties and dealing with bad actors. The byzantine generals problem has been a big issue for many years {clip}.

So if satoshi solved the generals problem though the Nakamoto consensus why are back at this problem? Scaling. In a race to be the one blockchain that rules them all many scaling methods are being attempted. The big issue with the dBFT that NEO is using is two parts.

The system only needs 66% agreement.
The system is starting out with a handpicked 7 validator nodes. Chosen by the NEO developers because they hold 51% of the coins.

This is a huge red flag. The developers effectively have a 51% attack on the NEO blockchain. They control enough coin to pick the nodes regardless of votes, and the nodes they pick can choose to accept or reject whichever transactions or smart contracts they wish. There is no recourse. Even if the public NEO holders voted for a different node they only have 49% of the votes at most.

This is not a blockchain I trust or recommend. Even if more validator nodes were allowed the token distribution effectively squelches any dissenting opinions.

Even if the tokens were distributed more widely and more publically there would still be huge issues. With both EOS and NEO the voting to select a block validator process is fatally flawed from the onset. First and most importantly, most people don’t vote. Even when incentivised the turnout is almost always less than 50%. Second, votes can be bought and sold for money, social capital, or promises of future favors. Finally voting typically and most assuredly in the case of these two blockchains results in a plutocracy where the whales make the decisions. None of these are better than what we have now with the current consensus methods employed by Ethereum or Dash or Bitcoin Cash.

Furthermore I am very interested to see how the EOS ethereum token transfers over to the EOS platform. If there is not a direct 1 to 1 transfer then the fundraiser regardless of disclaimers is fraudulent. Be careful out there. Anyone can buy hype, anyone can make claims, but not everyone delivers.

Music: “Out of the Skies Under the Earth” by Chris Zabriskie

Crypto Trading Warning Label Video

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Welcome to the wonderful world of cryptocurrency trading and HODLing! Before you amass your fortune which will then go to the moon there are a few things you should know:

First, don’t day trade crypto! You will probably lose money.

Second, don’t leave your crypto on the exchanges.

Third, do use 2 factor authentication if available.

Fourth, create a unique password for each exchange. And backup your wallets!

Fifth, You ought to be aware of the laws and regulations in your local jurisdiction even if you have no plans in adhering to them.

Sixth, diversify and hedge.

Seventh, buy low, sell high means buy when the coin is at a low or down, sell when it is up especially if it is a new all-time-high.

Eighth, Seriously, if you don’t know what you ought to buy, don’t buy crypto.

Ninth, there is a lot of volatility. HODLing is not always the best answer.

Tenth, You don’t know what is going to happen, no one does.

Now that we’ve covered those points you are ready to head out into the world of crypto trading. Best of luck navigating the chaotic, irrational, and nonsensical waters of cutting-edge fintech.


Intro music: Battle Boss by BoxCat Games
Outro music: Bacterial Love by Rolemusic


Bitcoin Ethereum Ripple Bitcoin Cash Litecoin Cardano Stellar NEO EOS IOTA Dash NEM Monero Ethereum Classic Lisk TRON Qtum VeChain Tether Bitcoin Gold ICON Zcash OmiseGO Nano Steem Binance Coin Bytecoin Populous Stratis Verge Siacoin Status RChain Dogecoin U.CASH BitShares Maker Waves Aeternity Revain Waltonchain Augur Veritaseum Hshare 0x ZClassic Decred KuCoin Shares Ardor DigixDAO Electroneum Komodo Ark Byteball Bytes Dragonchain Gas DigiByte BAT Loopring Bytom Kyber Network Zilliqa Dentacoin Golem PIVX Syscoin QASH Cryptonex Nebulas aelf Ethos Bitcore Pillar GXShares Power Ledger IOStoken Factom Dent MonaCoin Aion Cindicator Polymath FunFair ZCoin SALT Enigma ReddCoin Kin Nxt Bancor Particl TenX MaidSafeCoin ChainLink SmartCash
Request Network Quantstamp Ignis Emercoin

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Ep232: Tether Hack, Ethereum and Casper, Darren is back from Hong Kong

Tether was hacked losing some 30 Million USDTether and 5 Bitcoin to a wallet address connected to the 2015 hack of BitStamp. We discuss the future of money and what a Tether implosion could mean for the crypto market. Darren was in Hong Kong this past week for a work session with the DASH core team. He talks about the experience. Vlad Zamfir releases a first look at possible Casper Proof-of-Stake code.


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Traditional Financial Markets Cryptocurrency Markets
Gold $1,292 SegWit (SW) $8,189
Silver $17.13 Ethereum (ETH) $369
Oil $58.01 DASH $584
Dow Jones 23,526 points Litecoin (LTC) $71.40
30Y UST Yield 2.743% Bitcoin Cash (BCC) $1314

Continue reading Ep232: Tether Hack, Ethereum and Casper, Darren is back from Hong Kong

Ep 219: Scam Warnings About Bitfinex, Tether, and Empire Card

Scam alerts! There’s a fishy smell emanating from BitFinex and USDTether. Spammers attack Bitcoin cash. Darren shares his Bitcoin cash analysis. JJ interviews founders of Santiment and Centra. Overstock is doing $50K/week in Bitcoin business. Plus, you heard it here first: Empire Card ICO may be a scam!

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 and JJ!


Stream this podcast episode:

or Direct Download this episode as an MP3 – Neocash Radio cryptocurrency podcast ep219


Tune in to Neocash Radio every Wednesday night and
RETWEET ALL THE THINGS @NeocashRadio!

Subscribe to the Neocash Radio podcast
on iTunes/ Soundcloud/ Stitcher/ YouTube/ Google Play & iHeartRadio!
We’re also on Tunein, Player.FM, Overcast.FM, Podcast Addict, Blubrry, LBRY and more!


Traditional Financial Markets Cryptocurrency Markets
Gold $1,282 Bitcoin (BTC) $4,331
Silver $17.07 Ethereum (ETH) $301
Oil $46.77 DASH $228
Dow Jones 22,024 points Litecoin (LTC) $44.75
30Y UST Yield 2.812% Bitcoin Cash (BCH) $298

Continue reading Ep 219: Scam Warnings About Bitfinex, Tether, and Empire Card

Ep212: Top Coin May go to DASH, Token Sale Triumph and Turbulence, Cars and Crypto-volatility

Token sales bring triumph and turbulence. Dash lays out roadmap for success with focus on fundamentals. Vitalik is alive and tweeting. TenX sale tops goal of 200K ETH in 7 minutes. The hosts discuss issues with Coinbase and other factors impacting recent price swings. Darren and Pedro enjoy PorcFest while JJ stays home and talks music, marijuana, and crypto. JJ compares the evolution of cryptocurrencies to cars. A teenager becomes a Bitcoin millionaire.

All this and more on the Neocash Radio podcast, episode 212 — Wednesday, Jun 28th, 2017!

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 JJ and Pedro!


Stream this podcast episode:

or Direct Download this episode as an MP3 – Neocash Radio cryptocurrency podcast ep212


Tune in to Neocash Radio every Wednesday night and
RETWEET ALL THE THINGS @NeocashRadio!

Subscribe to the Neocash Radio podcast
on iTunes/ Soundcloud/ Stitcher/ YouTube/ Google Play & iHeartRadio!
We’re also on Tunein, Player.FM, Overcast.FM, Podcast Addict, Blubrry, LBRY and more!


Traditional Financial Markets Cryptocurrency Markets
Gold $1,248 Bitcoin (BTC) $2,583
Silver $16.78 Ethereum (ETH) $330
Oil $44.88 DASH $184
Dow Jones 21,454 points Litecoin (LTC) $43.47
30Y UST Yield 2.78%

Continue reading Ep212: Top Coin May go to DASH, Token Sale Triumph and Turbulence, Cars and Crypto-volatility

Ep209: ICO Elevator Caps Because Moar, Crypto Trading Common Sense, Ethereum and China

In this episode we talk at length about cryptocurrency trading and the perils that it could involve. Our show should not be considered investment advice to buy or sell or hold anything. The coming sea change will include a lot of success and at least some failure. Using the term “Investing” is a misnomer. Contributing to blockchain start-ups and projects ought to be better described as “Gambling”. We also talk about: The Brave Browser’s BAT token sells out in the space of 3 Ethereum blocks raising $36 Million in 24 seconds. Elevator Caps seem to be the new trend with token sales. The difference between Initial Coin Offering and Token Generation Event. This website keeps track of the success of tokens and coins against ETH and BTC. The Status Network might just be the glue that bonds the ethereum users, dapps, and more. Two massive chinese Bitcoin exchanges Huobi and OKCoin add Ethereum trading. The Ethereum Network has three times as many nodes as the Bitcoin network.

All this and more on the Neocash Radio podcast, episode 209 — Wednesday, May 31th, 2017!

Be sure to listen in to the whole podcast to get more information, insights, and thoughts on each of them from JJ, Darren, and Pedro!


Stream this podcast episode:

or Direct Download this episode as an MP3 – Neocash Radio cryptocurrency podcast ep209


Tune in to Neocash Radio every Wednesday night and
RETWEET ALL THE THINGS @NeocashRadio!

Subscribe to the Neocash Radio podcast
on iTunes/ Soundcloud/ Stitcher/ YouTube/ Google Play & iHeartRadio!
We’re also on Tunein, Player.FM, Overcast.FM, Podcast Addict, Blubrry, LBRY and more!


ICO Madness as BAT Sells out in 24 Seconds

We talked about Brave Browser’s recent switch from BTC to ETH on Ep200, and we first discussed Brave Browser on Ep167 way back in August!

Most notably was the incredibly small number of participants. The Token Generation Event raised $36 Million in 3 Ethereum blocks and blocks were found fast: just 24 seconds! The entire 1 Billion tokens are consolidated among just 190 addresses.

Leading up to the TGE there were some on reddit upset at the numerous last minute changes. Over a month ago the BAT team announced the fundraising goal of $15 Million with a cap of 1 Billion tokens. The goal was changed to $24 Million 9 days out with the reason being, ‘why not moar?’. Two days prior to the sale date the contract was deployed with an exchange rate based off 1 ETH = $153 of 1 ETH for 6400 BAT. In the end they raised $36 Million worth of ETH and presumably rising, more than 2 times their original goal.

This trend of token sales with elevator caps has seen Mystereum raise their cap from 10 to 14 million and sell out in 40 minutes. Storj raise their cap just prior to the token sale, Status had initially planned a cap of $10 million but that has changed to a $12 Million soft cap with hidden hard caps?

One thing is for certain, as overall market cap of cryptocurrencies crests $80 Billion there is a lot of funding available for a myriad of blockchain-based ventures. Especially if you can hype and have friends in high places.


I just want to take a moment and point out that an ICO is the term used for the launch of a new blockchain. The launch of a new token is actually termed a Token Generation Event. These are distinctly different events. Initial Coin Offerings refer to new blockchains spawning – these sort of events often require more resources and commitment. Token Generation Events often the creation of a mass of tokens that will be used on top of an existing and often well-established blockchain. The case of the tokens we talked about earlier in the show, Ethereum is the blockchain they are on.


ICO vs ETH

Some of the ICO/TGE are looked at as get rich quick schemes. In fact, a chunk of investors buy big into the initial offering only to sell it for double or more as soon as it is on the market. This site looks at the historic data and compares Bitcoin and Ether to dozens of other blockchains and tokens.


The Status Network

A ‘socio-economic network’ based off of a private messaging platform. The network runs on a Mobile OS built for Ethereum and the coming Token Sale will sell off the Status Network Token starting June 17th.

SNT will be used to power the Status Client, including:

  • Governance of the Status Client
  • A Decentralized Push Notification Market
  • Community Curation of Content, powered by UserFeeds.io
  • Fiat-to-crypto ‘Teller Network’
  • DApp Directory
  • Sticker Market
  • Access to new features such as Tribute to Talk
  • Powering the Status User Acquisition Engine

The Status network aims to connect users, apps, market functions and more all through a discrete messaging service.


Chinese Digital Currency Exchanges Huobi And OKCoin To List Ether

ethnews.com

Starting May 31, Ether will be offered on both the Huobi and OKCoin exchanges in China.

The Huobi digital currency exchange has announced that Ether will be available for trading on its platform starting May 31, 2017, at 12:00 (GMT+8). The first of China’s “Big 3” digital currency exchanges to offer Ether, Huobi’s announcement on May 27 could potentially have already contributed to the recent spike in the price of Ether, which saw a same day recovery of 40 percent. Per Huobi’s official twitter account, “There are many aspects of Ethereum that could outperform bitcoin, such as scalability, cost, [and] speed.”

OKCoin, Huobi’s main rival, will begin offering Ether at 22:00 (GMT+8) on May 31 as well; while Ether trading will officially commence on June 1. Last year’s decision by China’s Big 3 (BTCC being the third) to forgo listing Ether prompted many Chinese investors to use workaround trading strategies, such as buying bitcoin and using ShapeShift or other exchanges to convert it into Ether. If true, this type of buying might have created an artificial relationship between bitcoin and Ether which could potentially dissolve now that Chinese consumers can purchase Ether directly.

GDAX is a US based exchange that has recently added EUR/ETH and EUR/LTC pairs


Ethereum now has three times more nodes than Bitcoin

Trustnodes.com

The ethereum network has nearly 25,000 reachable nodes, spread across the globe, less than two years after its launch, while bitcoin currently has only around 7,000 nodes that verify the network.