Bank of Italy Official: Central Banks Not Ready to Issue Digital Currencies

https://www.coindesk.com/bank-italy-official-central-banks-not-ready-issue-digital-currencies/

The Crypto Community Isn't Sad or Surprised By R3's Reported Woes

https://www.coindesk.com/crypto-community-isnt-sad-surprised-r3s-reported-woes/

Japanese Syndicate Wallet Hacked, $10 Million Reported Missing
https://bitcoinmagazine.com/articles/japanese-syndicate-wallet-hacked-10-million-reported-missing/

Shopin (https://tokensale.shopin.com/) — a universal shopper profile that delivers personal shopping experiences through retailers’ apps, websites and stores — says one of its token distributors has been hacked and roughly $10 million in a variety of cryptocurrencies has been stolen. Representatives of the platform have released the following statement: “On Wednesday, May 30, 2018, Shopin distributed tokens to one of its leading partners in Japan, who runs a large Japanese syndicate. A few day later, her wallet was hacked, as she was not storing it in cold storage or in a hardware wallet. This is a very sad moment; the Shopin team has a lot of empathy for the situation and the wonderful Japanese people who have participated. We are investigating what can be done to help with the situation.” Eran Eyal is the founder and CEO of Shopin. Speaking with Bitcoin Magazine, Eyal explained that the syndicate in question is a group of participants that pool their funds together to get access to better deals in TGEs and ICOs. Typically, the syndicate is represented by one or a few individuals that the group entrusts to handle funds, send them to varying projects and then distribute project tokens back to respective members. “Usually, this is done via prima-block, which enables the participants to pool their funds into a smart contract which handles all the parameters and distribution,” he explains. “This was a methodology that we urged the Japanese syndicate head to use, but it was unheeded. Instead, the syndicate lead decided to store the funds and tokens they received in a wallet like MyEtherWallet.” Eyal insists that executives spent weeks urging those involved to be cautious and to use only cold storage for housing tokens. “At one stage, we even recommended other wallets for receiving the tokens and sent instructional videos,” he assures. “The only things that could have brought this to bear, in our minds, is that someone had access to the syndicate lead’s passwords, devices or mnemonic key. The actual vulnerability is the negligence of keeping this all in a hot wallet.” The Shopin team is working extensively to get the funds back. Eyal says they’ve even tried pleading with the hacker and have offered a reward for returning the funds. “Our tokens were distributed by an airtight smart contract and was audited by three external top-of-class firms,” he claims. “176 hackers couldn’t find bugs or flaws in our bug bounty program, so we take this matter very seriously.” Shopin is now working with Blockseer (https://www.blockseer.com/) — which tracks cryptocurrency transactions — to see if the stolen funds hit an exchange that can be locked down. Eyal says the team has left comments on various wallets informing users not to interact with the tokens, though this isn’t a fool-proof plan. “We are investigating other technical solutions as well, such as a token swap, where all existing token holders send their tokens to a smart contract that converts the tokens into a new token, except for the stolen ones,” he says. “If our legal team and community approves this solution, we would thwart the thief, and the syndicate would get its tokens back.” Overall, Shopin claims to have put approximately 200 hours of time into trying to locate the stolen funds. “From a legal standpoint, Shopin’s responsibilities ended when we delivered the tokens to the syndicate and they acknowledged successful reception,” Eyal states. “However, the moral and ethical ramifications are the real issues. Shopin takes a very thoughtful and balanced approach to decisions we make as a company. We are sparing no effort in examining every solution possible.” Stationed in Brooklyn, New York (https://www.prnewswire.com/news-releases/japanese-syndicate-wallet-hacked-10-million-usd-reported-missing-300660484.html), Shopin was recently voted “Best ICO” at the North American Bitcoin Conference of 2018. It was also labeled “Best ICO and Startup” by CoinAgenda Global and given the number

five “Top ICO” spot at Davos d10e.



This article originally appeared on Bitcoin Magazine (https://bitcoinmagazine.com/).

Chinese Cryptomining Chip Giant Bitmain Is Considering an IPO
https://bitcoinmagazine.com/articles/chinese-cryptomining-chip-giant-bitmain-considering-ipo/

Bitmain — the largest and most established manufacturer of cryptocurrency mining chips — is considering an IPO, or initial public offering. This could potentially open the company’s books to the world and allow the stock market to assign the company real-time value.
Bitmain’s 32-year-old founder Jihan Wu says he’s chiefly examining the possibilities of a listing in Hong Kong or “an overseas market with U.S. dollar-denominated shares.” This, he says, would give early investors the chance to cash out.“Bitmain is trying very hard to maintain its advantage,” he explained, commenting that the company (http://www.businessinsider.com/bitmain-cryptocurrency-bitcoin-mining-jihan-wu-ipo-2018-6?r=UK&IR=T) has dominated the mining scene since it first came to fruition.Wu says a public share sale would be a “landmark” for both the company and the cryptocurrency space in general. He comments that miners, venture capitalists and developers alike are trying desperately to appease global regulators and are thus opting for less privacy and more transparency to prove digital assets are not fraudulent but rather legitimate forms of currency.He continued to say that an IPO would also help push Bitmain’s profile, as the company is eagerly looking for ways to branch out into alternate arenas of technology including artificial intelligence which, unlike cryptocurrencies, has garnered solid support from Chinese officials.One of Bitmain’s primary competitors, Canaan Inc., has already filed for a Hong Kong (https://cryptonewsmonitor.com/2018/05/16/asic-manufacturer-officially-files-1-billion-ipo-in-hong-kong/) IPO. The offering is slated to raise approximately $1 billion in initial funding, but this is relatively miniscule compared to what Bitmain has managed to accomplish.Wu explains that Bitmain’s revenue for 2017 alone was roughly $3 billion (http://fortune.com/2018/06/07/jihan-wu-cryptocurrency-mining/), and that he and co-founder Micree Zhan own more than 60 percent of the business, making them the primary shareholders. He values Bitmain at just under $12 billion, while he, himself, has a net worth of over $5 billion.A Bitmain spokesperson told Bitcoin Magazine that Canaan beating Bitmain to the punch is not something executives are overly concerned about.“There certainly isn’t a race to be the first crypto-mining company to go IPO. Should Bitmain continue on this path towards an IPO, it does so on its own terms and to support its own strategic goals, not as a competitive marketing exercise.”Per a February report by Sanford C. Bernstein & Co., Bitmain holds as much as 80 percent (https://www.bloomberg.com/news/articles/2018-05-16/bitcoin-mining-equipment-maker-canaan-files-for-1-billion-ipo) of today’s crypto-mining gear, and that units from its most popular mining series — the Antminer — typically sell for anywhere between a few hundred and a few thousand dollars each. Professional mining operators with access to low-cost electricity have been known to purchase these units in bulk.Despite the positive effects an IPO could have on the company’s reputation and status, Mizuho Securities Asia analyst Kevin Wang was critical of Bitmain’s plans, saying the only reason Hong Kong investors would be drawn to an IPO like this is because there are very few options to choose (https://www.bloomberg.com/news/articles/2018-06-07/crypto-s-32-year-old-billionaire-mining-king-is-mulling-an-ipo) from in the Chinese mining arena, which Bitmain already dictates.“They’ll have a premium for their valuation because there are very few stocks like Bitmain in Hong Kong,” he said. “It’s the sustainability of the business that’s the real question mark.”Bitmain’s spokesperson responded to this criticism by saying, “Many assume that Bitmain’s success must mean it possesses a level of power no company really has. This includes the false rumor, which was addressed in our blog (https://blog.bitmain.com/en/bitmain-sia-state-cryptocurrency-mining/), that we prevent suppliers in

China from working with other companies. On the contrary, there have lately been new competitors, both in China and abroad, who are making competing mining devices. Bitmain has also been more transparent about its operations, such as publishing QA and shipment information.”




This article originally appeared on Bitcoin Magazine (https://bitcoinmagazine.com/).

The Yes Votes Are In: EOS Blockchain to Launch Imminently

https://www.coindesk.com/yes-votes-eos-blockchain-launch-imminently/

Four Projects Seek to Solve Ethereum's Privacy Paradox

https://www.coindesk.com/four-projects-seek-solve-ethereums-privacy-paradox/

How Blockchain Can Finally Fulfill Its Promise in Global Payments

https://www.coindesk.com/blockchain-can-finally-fulfill-promise-global-payments/

South Korea just ruled that bitcoin is a legally recognizable asset, which is good news for investors, but not such good news for convicted criminals that had managed to hold onto their cryptocurrency in the past. While 5,300 miles away in Slovenia, we see BTC City adopting full cryptocurrency support via blockchain by all vendors in the shopping center. Meanwhile, The Woz continues to have a sunny outlook on Bitcoin and predicts that, within 10 years, bitcoin will become a unifying currency around the world.
Looking back in the history of blockchain, we explore the evolution of blockchain education, from chatrooms to classrooms in this month’s cover story and the history of Bitcoin’s proof-of-work protocol.Featured stories by Colin Harper, Nick Marinoff and Aaron van WirdumStay on top of the best stories in the bitcoin, blockchain and cryptocurrency industry. Subscribe to our newsletter here (https://bitcoinmagazine.com/subscribe/).From Chatroom to Classroom: The Evolution of Blockchain Education (https://bitcoinmagazine.com/articles/chatroom-classroom-evolution-blockchain-education/)With the creation of Bitcoin and its blockchain, Satoshi Nakamoto introduced an entirely new practical application for cryptography, unearthing an unexplored area for computer science and technological development. Demand for instructional information and educational materials has risen dramatically since that time, with the first universities beginning to offer formal courses in 2013.In this month’s cover story, we take a look at the different ways that people have been able to learn about the bitcoin and blockchain space, from the earliest days of message boards and meet-ups to the latest in university curricula and online resources.The Genesis Files: Hashcash or How Adam Back Designed Bitcoin’s Motor Block (https://bitcoinmagazine.com/articles/genesis-files-hashcash-or-how-adam-back-designed-bitcoins-motor-block/)Hashcash killed two birds with one stone. It solved the double-spending problem in a decentralized way, while providing a trick to get new coins into circulation with no centralized issuer.In his latest installment of The Genesis Files series, Aaron van Wirdum looks back at the roots of proof of work. He examines not only the important role that Dr. Adam Back played in the development of Hashcash, which would eventually help to lay the groundwork for Bitcoin’s proof of work protocol, but also the seminal work of IBM researchers Dr. Cynthia Dwork and Dr. Moni Naor.South Korean Supreme Court Rules Bitcoin Is an Asset (https://bitcoinmagazine.com/articles/south-korean-supreme-court-rules-bitcoin-asset/)South Korea’s Supreme Court just ruled that bitcoin is a legally recognizable asset. The landmark ruling occurred on May 30, 2018, and it overturns a decision made by one of the country’s lower courts in a case dating back to last year. In September 2017, the Suwon District Court charged (http://news.khan.co.kr/kh_news/khan_art_view.html?artid=201709082148015&code=940301) 33-year-old Ahn with the sale and distribution of child pornography. Even though the court handed Ahn a guilty verdict and 18 months in prison for his actions, it did not confiscate the 216 bitcoins Ahn accumulated in exchange for the porn. According to the court, the government could not seize Ahn’s bitcoins because, unlike other assets tied to illicit dealings, they aren’t tangible. Now, the country’s Supreme Court thinks otherwise. The Suwon District Court’s decision was appealed, and, upon being challenged in South Korea’s highest court, it didn’t hold up.Slovenia Plays Host to the World’s First “Bitcoin City” (https://bitcoinmagazine.com/articles/slovenia-plays-host-worlds-first-bitcoin-city/)Slovenia has announced that its largest shopping center, known as BTC City, will transform into a complete bitcoin city (https://news.bitcoin.com/slovenias-shopping-center-btc-city-genuine-bitcoin-city/), in which every store and venture will accept cryptocurrency and operate

via blockchain technology. BTC City presently plays host to several travel and tourism ventures including a luxury hotel and casino, a multiplex cinema, a waterpark and the Crystal Palace office park — home to Slovenia’s tallest building. Executives of BTC City say they’re hoping Bitcoin City will give rise to new businesses that push the cryptocurrency space toward mainstream territory and lead to further blockchain developments.Steve Wozniak Wants Bitcoin to Become the World’s Single Currency (https://bitcoinmagazine.com/articles/steve-wozniak-wants-bitcoin-become-worlds-single-currency/)In a recent interview with CNBC (https://www.cnbc.com/2018/06/04/apple-co-founder-steve-wozniak-hopes-bitcoin-will-become-global-currency.html), the computer mogul admitted that he hopes bitcoin will become a single global currency and that he shares the sentiment of Twitter and Square CEO Jack Dorsey, who expressed his belief last March that bitcoin will become a unifying cryptocurrency (https://bitcoinmagazine.com/articles/twitter-and-squares-jack-dorsey-bitcoin-will-be-worlds-single-currency/) for every nation within the next 10 years. This is not the first time Wozniak (https://www.independent.co.uk/life-style/gadgets-and-tech/news/bitcoin-global-currency-apple-steve-wozniak-cryptocurrency-a8383036.html) has been vocally positive about bitcoin. At a Money 20/20 event in Las Vegas last October, he lauded the cryptocurrency and its blockchain technology as stronger and more financially sound than both gold and USD. He stated that traditional currencies are “kind of phony,” as they are widely vulnerable to inflation, and that the problem with gold is that there is no fixed supply.




This article originally appeared on Bitcoin Magazine (https://bitcoinmagazine.com/).

Sex Workers Are Using Crypto to Save for Retirement

https://www.coindesk.com/sex-worker-retirement/

The Top 5 Ethereum Dapps By Daily Active Users

https://www.coindesk.com/top-5-ethereum-dapps-daily-active-users/

Bitcoin Price Dips to Two-Month Low Below $7K

https://www.coindesk.com/bitcoin-price-dips-two-month-low-7k/

This Russian County's Website Was Hacked to Mine Cryptocurrency

https://www.coindesk.com/russian-countys-website-hacked-mine-cryptocurrency/

Just Diversify? With Crypto Portfolios, It's Not So Simple

https://www.coindesk.com/just-diversify-crypto-portfolios-not-simple/

The Fed Should 'Get Serious' About Crypto, Says Former FDIC Chair

https://www.coindesk.com/fed-get-serious-crypto-says-former-fdic-chair/

Coinrail Exchange Hacked, Loses Possibly $40 Million in Cryptos

https://www.coindesk.com/coinrail-exchange-hacked-loses-possibly-40-million-in-cryptos/

Crypto Startup Wala Is Reaching Real Africans with Ethereum Micropayments

https://www.coindesk.com/african-startup-ethereums-scaling-issues/