22 FEATURE TUESDAY 18 SEPTEMBER 2018 CITYAM.COM CITYAM.COM TUESDAY 18 SEPTEMBER 2018 FEATURE 23

CRYPTO A.M. Our series on AI, , and Tokenisation E: [email protected] @CityAm_Crypto In association with PARTNER CONTENT

OR YEARS , cybercriminals tember 2017, and has even been used CITY A.M.’S have been experimenting on legitimate websites as an alterna - CRYPTO CHALLENGE FORUM 2018 with new ways to steal and ex - tive to serving up annoying sidebar CRYPTO INSIDER tort money from victims. ads. More recent trends CRYPTO AND This isn’t money out of thin air, Blockchain and the Future of Humanity: Finvolve the boom in cryptocurrency. though as users are still liable for JAMES BOWATER Here, Tyler Moffitt , Senior Threat Re - their computer’s power usage, the Economy. Environment. Ethics search Analyst at Webroot, explores cost of which shows up in their elec - EN YEARS ago on 15 September 2008 the relationship between cybercrime CYBERCRIME – tricity bill. While the spike in electric - Crypto Challenge Forum is the world's major A distinctive feature of Crypto Challenge Lehman Brothers filed for Chapter 11 and cryptocurrency. ity bills may not be especially industry event. It will take place on 28th – Forum is the Investors’ Hub – an exclusive Tbankruptcy protection to the tune of Basic ransomware attacks, where a noticeable on an individual level, the 30th October 2018 at the iconic Central Hall networking area where the brightest startups $600bn (£456bn) and remains to date the largest cybercriminal demands payment in cryptocurrency adds up fast for site Westminster, London, connecting global will have access to decision makers bankruptcy in US history. It’s an important exchange for something they’ve A MARRIAGE owners who have a lot of visitors. thought leaders, policy makers, investors representing participating investment funds, landmark because the 2008 global financial crisis was taken from your computer, have been While CoinHive’s website explained and startups from across the world for a VC firms and family offices, with a total of 70B the primary inspiration for ’s white around since the mid-noughties. that this was simply an ad-free way three-day top content event. It will be USD under management. paper, paving the way for the Blockchain and Crypto Early iterations would impersonate MADE IN HEAVEN? for website owners to generate attended by the industry leaders, think tanks, An ICO contest with 100k prize pool to be industries as they are today. the FBI and demand payment to avoid enough income to pay for the servers, institutional and private investors, family distributed in three prizes will be held The Crypto market has been going through its own pain this exposure of nefarious activities they it’s clear cybercriminals are abusing offices and VC firms. alongside the two day exhibition in the Hall's year but seems to be stabilising with a market cap of circa claimed victims had been doing. But the tactic. The forum is privileged to have some of the lobby. $200bn, Bitcoin settling at around $6,500 and Ethereum’s as technology, digital currency and All a criminal needs to do is inject a world’s most authoritative speakers, some of Last, but not least, the Forum abounds in a price slide halting around the $220 mark. Mike Novogratz of online payments have evolved, so few lines of code into a domain they whom are global transformers. rich networking programme ranging from Galaxy Digital suggested the market has hit a bottom in his have the tactics used by cybercrimi - don’t own then simply wait for vic - Split across three tracks, the Forum’s post-conference receptions to private VIP tweet on 13 September. The following day Tim Draper, nals to extort money. tims to visit that webpage and gener - agenda will address a range of global issues retreats. It will culminate in the black tie another major industry figure and venture capitalist, In the FBI scam days, the anony - ate clean profits in the form of including the Future of Digital Investment Halloween Gala & Awards Giving Ceremony predicted that the total market capitalisation should hit $80 mous online market was cryptocurrency. In the first half of this and Regulatory Framework of the Crypto. at the renowned 8 Northumberland Avenue. trillion in the next 15 years. For this to happen it is essential, in appearing and experimenting with year Webroot has blocked over 12m The Forum will see an unprecedented The Gala will feature award giving in a my view, that we see institutional and mass adoption. Bitcoin as its chosen currency. The un - webpages compromised with the agenda «The World’s Ecosystems and Crypto variety of nominations including, inter alia Although there is a general feeling of hurry up and wait, one derground black market, hidden on CoinHive JavaScript to mine Monero Investment» where a whole track will be Crypto Challenge Forum 2018 Most area where there is movement is with stablecoins the Dark Web, was the ideal place to by hijacking site visitors’ CPU power. given to crypto friendly governments who Innovative Regulator of the Year, 2018 ( pegged in value to a stable asset such as The amount of labour and illegal will be showcasing their ecosystems and Blockchain/ Crypto Investor of the Year and gold or the US Dollar). , footprint is minimal compared with highlighting their Blockchain initiatives. ICO Advisor of the Year. having had its Bitcoin ETF application rejected, did get ransomware, making cryptojacking Global announcements are expected to be approval last week for the Gemini dollar. Clearly aimed as a today’s #1 threat. made. www.cc-forum.com competitor to Tether (‘USDT’), wrote: Cybercriminals are always looking “To date, there has been no trusted and regulated digital for new ways to get ahead. They representation of the US dollar that moves in an open, Cryptojacking is utilise a vast range of tools to extort decentralised manner like cryptocurrencies.” He went on to funds, and the evolution of cryptocur - say: “The Gemini dollar (‘GUSD’) combines the the newest way for rencies has provided them with a low creditworthiness and price stability of the US dollar with cybercriminals to risk new means of pocketing funds s Blockchain technology and the oversight of US regulators, from illegal activities. s namely, the New York State Department of Financial generate money To avoid falling foul of their Services.” Hot on the heels of the Gemini ‘good news’ story, a schemes, users should ensure that a regulated custody solution has finally arrived, as reported in Designed by sulted in eyewatering values. But fering a “discounted” ransom. adapt and find an alternative digital CPUs inside personal computers, and they take security seriously. Think Off the Chain with Anthony Pompliano. “BitGo, a Blockchain acquire goods and conduct illegal Phill Snelling, cybercrime has played its part. This became the start of cybercrimi - currency. Monero might not have en - phones, instead of requiring twice before opening that email or a security company, received a state trust company charter activities away from law enforcement Bowater Media Sophisticated encrypting ran - nals preferring cryptocurrency over tered the mainstream until 2016, but specialised hardware, sparking yet clicking that link, or you might find t from the South Dakota Division of Banking late last week. eyes. For years, the marketplace somware (where hackers obtain ac - preloaded cash cards. it is slowly becoming the most usable another trend for criminals: crypto - yourself an unwilling cryptocurrency This milestone cements BitGo as the only qualified custodian thrived and proved that Bitcoin cess to precious files or photos and As ransomware became the number cryptocurrency for criminals so far. jacking. investor. in the built exclusively for digital assets.” worked well for monetary transac - lock them down) entered the scene one online threat, Bitcoin also saw a Its private ledgers hide both the ori - In cryptojacking, cybercriminals s Closer to home, the Blockchain International Scientific tions and transfers. shortly after Silk Road’s demise. Ini - major increase in activity, in which gin and amount of the transaction, don’t have to deliver a single piece Author: a Conference (BISC) 2019, from the British Blockchain All of that ended when the FBI tial attacks proved hugely successful, the payment of ransoms will have making it completely untraceable. malware to profit. Instead, crypto - Tyler Moffitt, Senior Threat Research Association (BBA), is gearing up and seeking papers, panelists seized Silk Road and arrested its and new ransomware variants contin - played a contributing part. However, Criminals can freely send Monero to jacking targets websites to hijack vis - Analyst and speakers from the Blockchain world. Researchers, founder in 2013. The site was shut - ued to emerge to infect millions of in - the public system that Bitcoin any address and then cash it out itors’ computer power to mine IMPORTANT INFORMATION: THE VIEWS AND academics, technologists, Blockchain developers, policy down and the value of Bitcoin took a dividuals and businesses around the is built upon meant that addresses without the need to launder their Monero for the site’s owner. OPINIONS PROVIDED BY CITY A.M.'S CRYPTO makers and other stakeholders are welcome to submit their sharp dip. However, it didn’t take long world. While early editions accepted were linked to criminal campaigns ill-gotten gains. This new trend has been gaining INSIDER ARE OF THOSE NAMED IN THE ARTICLE original research papers, pilot projects and case studies to for Bitcoin to bounce back, and since a range of payments, they actively resulting in a number of arrests. Monero is also unique in that it can momentum since CoinHive first de - AND SHOULD NOT BE TAKEN AS INVESTMENT ICO NEWS ADVICE. THIS COMMUNICATION IS MARKETING BISC 2019. then it has seen several booms that re - encouraged the use of Bitcoin by of - Thereafter, criminals looked to be mined profitably using regular buted the mining JavaScript in Sep - MATERIAL. Crowdfunding 3.0 & 300 Crypto A.M. Shines its THE BEST OF BOTH WORLDS: Time Bombs a’Ticking As we enter this new season, looking aboard a train they can see is out of their back over the last seven years it’s not dif - control, they no longer monopolise and Spotlight on SatoshiPay GOLD AND CRYPTO ficult to see how Crowdfunding has dominate the agenda. Jai Bifulco, Chief Marketing Officer of Kinesis transformed both innovation and entre - So it is that, even were all this to change HE ADOPTION of crypto blockchain models. With SatoshiPay, the payment ICO, Blockchain and Cryptocurrency Expert preneurship, providing an open door, tomorrow, there are around 300 disrup - payment solutions is occurring across amounts start from as little as a fraction of open access to the open market, for start - tors, primed and funded, seeking to dis - Tmultiple sectors. However, to date a pence, enabling the company to strategi - RYPTOCURRENCY and blockchain individuals to react similarly as they hold like the Kinesis Monetary System can ups and ventures of any size. intermediate. there has been no accessible and cost-effec - cally position itself to take advantage of an technology have presented a unique cryptocurrencies in hope for positive revolutionise the money as we know it. Meanwhile Fintech has begun to prise My most recent interview with one was tive way to transact in micro amounts, estimated $10bn fee market. Copportunity to change the manner in growth. Cryptocurrencies, such as Bitcoin and open payments and, to a limited extent, with Zwoop, which calls itself a ‘Find En - something that is particularly important in Benn continued: “In essence, SatoshiPay which the world transacts. What makes Gold has been valued by civilizations all Ethereum are systems whose value is the financial system, by starting to bring gine’ seeking to end the ripoff of biased high volume low margin transactions. This is a digital “pocket change” wallet for the money successful and sustainable is the around the world for thousands of years, based on the digital supply of these some of the gains of technology to cus - ecommerce, and claims to be able to get has now changed. web, where internet users can pay small degree to which it is an efficient medium of maintaining its status over time as the currencies; Attempt to replace the current tomers rather than ignoring them or you there - including past the hype and SatoshiPay, a UK registered company run amounts, starting from as little as 1p, for exchange between two parties as well as a most effective store of value the world has fiat-based system with a digital currency, pocketing them as cost-savings for in - highest bidder to the best deals - in a frac - by a team of international technology and web content like articles, blog posts, music, stable store of value. ever seen. however both lack intrinsic value. cumbents. tion of the time... from minutes search - payment specialists, has developed a solu - podcasts and videos. People spend billions This definition is supported through the Gold and crypto are both stores of value, Precious metals ensure a stable store of Over the last seven months ICOs and ing for the best deal to seconds. tion providing a frictionless global micro - on micropayments in video games. We’ve economic principal of Gresham’s law however unlike major cryptocurrencies value, whilst maintaining the security, other Token Offerings have raised more Meanwhile sharing the fruits of your payment infrastructure based on created a similar user experience for the which defines the concept “bad money gold is a stable, where crypto is not. Crypto transparency and integrity of the money than Crowdfunding over those data (allowing you to opt out if you pre - blockchain technology. drives out good”, which suggests when is a fairly efficient means of exchange, blockchain. Before we find out whether or seven years. fer) with you. CEO Meinhard Benn said: “On the internet Meinhard Benn, CEO of SatoshiPay dealing with two currencies, individuals are unfortunately it can be slow, expensive and not that is the case, we remain spectators But in terms of innovation, and its im - In this case not a mere idea but a ven - it was impossible to make payments of 1c likely to spend the currency they deem less of course with the wild volatility, people of a race to find the winner who is able to pact, Crowdfunding 3.0 goes far deeper ture already funded and with a track or less. By using peer-to-peer blockchain web, and this will unlock a whole new set of core infrastructure and service providers infrastructure platform for micropay - valuable adopting a pattern of ‘hoarding’ choose to hold more often than spend. best utilise blockchain technology to solve as the Token Crowdfund takes its place record, MVP and, indeed, beta platform. technology, we have solved one of the long - revenue streams starting with publishers.” including blockchain provider Stellar De - ments. To achieve this goal, SatoshiPay is for that which is deemed more valuable. A system which is able to bring together the problems of today. We do encourage beside equity, donations, ‘rewards’ and Zwoop are typical of the disruptors, in - standing problems of the commercial web: Blockchain helps Initially targeting digital content creators, velopment Foundation and card payments developing complementary solutions to This can be observed within the crypto the pros of both gold and crypto, whilst those interested to investigate how Kinesis Crowdlending - dwarfing them all. novators and pioneers I have interviewed processing high volumes of low value trans - SatoshiPay allows individuals to pay for company TransactWorld. Notably, as part support different sectors. sphere as volatile markets cause minimising the negative consequences just Money is achieving this monumental task. By our count at TokenIntelligence.io over the last 33 episodes and seven actions.” us to remove one web content that they want to consume of the partnership with Stellar, SatoshiPay Benn summarised: “Payments for digital there are now well over 2,500 tokens and months on ICOrad.io. Other notables in - These transactions have previously been and allows publishers to monetise their has been granted to distribute 50,000,000 content are just the start. We've built a coins. Even allowing for a high attrition clude DESICO, Kinesis, CosmeCoin, and commercially unfeasible primarily due to of the biggest digital assets in tiny increments and with - Stellar Lumens, currently worth more than general-purpose micropayment infra - rate, to be expected among startups and inventor if the ICO J.R.Willett. the level of fees that are paid to third par - obstacles for out friction. Thousands of online publish - £7m in total, as part of a series of giveaway structure that will allow payments in many especially those attempting high innova - Initial excitement may be abating ties, bad usability and high transaction ers have already signed up for the service, programmes to encourage uptake of Sato - different industries, like the Internet of tion, that means there are now more somewhat as we head out of summer but costs. With existing bank infrastructure micropayments – including UK’s most-read tech blog The shiPay by end users. things, retail or public transport. In than 300 well funded, independent ven - around 300 innovation time-bombs are service providers charging base fees of 10- Register. One of the backers for the com - Notwithstanding SatoshiPay’s initial suc - the future third-party developers tures seeking to disrupt and decentralise. ticking - at an ever increasing pace . 30p per transaction plus a percentage, it mental pany is Axel Springer, one of Europe’s cess in media, the company has a clear vi - and businesses will be able to build their While the trend is now to work with More on this via ICOrad.io. Please made it difficult for digital vendors to main - biggest media houses. sion aimed at increasing its reach and own micropayment products on top of the VCs, who’d previously have been call - Tweet/Telegram your questions to @BarryEJames tain viable micropayment business transaction costs SatoshiPay is supported by several major becoming the industry standard payment our platform.” ing the shots but have been scrambling or listen at ICOrad.io.