Messari's Weekend Reads 😎

reading, sleep, and self-care

Your daily snapshot from our OnChainFX markets dashboard.

Missing out on our hot takes and summaries on things like SEC-KIN, FATFA, and dxDAO. Learn more about the alphabet soup everyone is talking about on a weekly basis and sign up to our premium research briefs if you aren’t already:

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Some weeks are more of a grind than others. So I’ve got nothing else to say this week (for a welcome change). Let’s just get right into the weekend reads….

📚 Messari’s weekend reads:

  • Why ICOs Are Broken - Jimmy Song

  • On abstraction and risk - Rocco

  • Defeating Augur’s largest attack - Ben Davidow

  • Plot to steal cryptocurrency foiled by the npm security team - npm

  • Money is ripe for a paradigm shift - Hasu

  • Joe Rogan Experience #1309 - Naval Ravikant - Joe Rogan

  • New, More Usable Nukes for Trump? No. - Rep. Ted W. Lieu

  • Did James make the right Final Jeopardy bet? - Tim Urban

Earlier this week we hosted an AMA with Jeremy Kauffman, founder of LBRY Credits on our community telegram. Check out the full transcript to learn more about LBRY and how they facilitate decentralized content distribution. Our next AMA will be with AirSwap on Thursday June 13th. Don’t miss out. Join us on Telegram today.

And now for some other news from members of the Messari Disclosures Registry.

✅ Updates from the Messari Registry Members:

Have a good weekend y’all.

- The Messari Team

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Messari Compression Algorithm

Content and thoughts from around the web as summarized by the Messari team.

🐟 [Analysis] A closer look into 2018-2019 Electrum phishing attacks - Clain

The widely used Electrum cryptocurrency wallet has been under severe phishing attacks that are still ongoing since December 2018. The on-chain analysis firm Clain has been monitoring the situation and tracing the flow of stolen coins, concluding that the attacks can be grouped into roughly 2 rounds, "presumably orchestrated by at least 2 independently acting hackers," Clain asserts. The first group slowly aggregated funds on one address and then systematically converted the bitcoins to Monero ($XMR) in a series of transactions that never exceeded 1 BTC. The second round of phishing attacks is still running, according to Clain. These bitcoins were sent to the peer-to-peer exchange Bisq, again in amounts that didn't exceed 1 BTC. The below image is a sample of the pattern that the second hacker(s) followed to launder at least 372 BTC at the time Clain published this research. (share or read more)

🔎 [Analysis] FSB warns tokenised liquidity could be illusory - Izabella Kaminska

The Financial Stability Board recently issued a report pointing out the real limitations of tokenization, according to the Financial Times. Tokenization artificially liquefies illiquid assets like real estate, creating a gap between how assets are valued and how that value can be captured. "In particular, risks could arise where there is a liquidity mismatch between the token and the underlying asset," the FSB writes, "or where investors have limited understanding of products packaged into a token." Governance and accountability issues are added to the aforementioned problems. Holding keys and software bugs create a whole new world of accountability problems regular assets do not possess. (share or read more)

Quick Bits (Don't read that, I read it for you)

Choke Points (Exchange News)

  • 📉 A flash crash in Poloniex's Clam ($CLAM) market caused Bitcoin ($BTC) lenders to lose a collective 1,800 Bitcoin or $13.5 million. A 77% drop in Clam's value in just 45 minutes could not be handled by Poloniex's automatic liquidity machine, resulting in a socialized loss of 0.4% to all users. Poloniex is looking for defaulting borrowers to repay lender's holdings. (share or read more)

  • 📈 CME Group says May was its best month yet for Bitcoin ($BTC) futures contracts in both volume and open interest. Average daily volume hovered around $515 million, an increase of 36% since April and 250% year-over-year. Open interest was up 80% from May 2018 and 223 new trading accounts were opened, the most since Jan. 2018. (share or read more)

Startup Signals (ICOs, Cryptos, and Startups)

  • 🔮 The Ethereum ($ETH) based betting market Augur ($REP) has introduced a new filter on their Augur App to identify scams. Beforehand, scammers could create 'invalid' bets that would split the total sum of Ether-bet evenly between users, earning them a profit. Although not perfect, the filter sifts out likely 'invalid' bets by highlighting more trustworthy markets. (share or read more)

  • 📱 Crypto and digital wallet provider Komodo ($KMD) has hacked itself in an effort to protect funds disclosed by research to be at risk. Komodo successfully hacked 8 million KMD and 96 Bitcoin ($BTC), an estimated $13 million that would have been easy pickings for a nefarious hacker. The coins have been deposited in two wallets with Komodo asking owners to reclaim their assets. (share or read more)

The Powers That Be (Legal/Reg/Policy)

  • 🦘The Australia Taxation Office (ATO) is investigating 12 tax avoidance schemes as a part of an international investigation led by the J5 group which includes Australia, the U.S., the U.K., the Netherlands, and Canada. One of the 12 schemes targeted by the ATO is said to be a global financial institution and its intermediaries, and the agency is exploring other firms that have used cryptocurrencies to assist entities evade taxes. (share or read more)

  • 🇮🇳 A draft bill entitled 'Banning Cryptocurrencies and Regulation of Official Digital Currency Bill 2019' circulating India's legislature would ban direct or indirect uses of cryptocurrencies with penalties of up to ten years in prison and fines three times the profits or 'losses to the system," according to The Block. The draft gives current users 90 days to dispose of any crypto holdings. Creating a digital rupee is also included in the legislation. (share or read more)

Did I miss something?

Send me the link, your twitter handle and your best imitation compression algorithm write up. If I like it, I’ll include your bit next issue (with attribution).

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