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Bancor had a front-running problem, so it hired one of the manipulators to fix it

What's a decentralized exchange (DEX) to do when a pesky front-runner is ripping off your clientele? You hire him.  That's exactly what decentralized exchange Bancor did when users of its platform noticed that a trader was jumping in front of other users' market orders. Front-running is a type of market manipulation and a common practice on Wall Street, ranging from large banks trading ahead of their clients' orders to turn a profit to executing a trade based on non-public information.  And, naturally, front-running has found its way to crypto, causing especially big headaches for decentralized exchanges. Such platforms — which support peer-to-peer exchange of cryptocurrencies — have been prone to such manipulation, as a recent academic study out of Cornell Tech noted. The study named Bancor as one of the platforms plagued by the issue. Specifically, Bancor identified a front-runner who was using bots to scan its platform for pending transactions.  These bots essentially exploited the fact that there are usually more transactions waiting to be verified than miners can process at any given time. Therefore, by setting a very high gas price, the bots can attract miners to execute their transactions first and front run other trades.  "This would lead to the legitimate user receiving fewer tokens in return," Hindman said. "The bot would immediately sell the acquired tokens at a profit, effectively stealing from the legitimate user." By bringing on the Russian front-runner as a contractor, Bancor was able to devise a solution to the platform's front-running problem.  "We offered the front runner a bounty in exchange for information and consulting on specifically how he (and presumably numerous other front-runners) were outsmarting our protections," he said.  The solution Bancor found was to set a limit on the amount of gas — essentially fees paid to make a transaction — to keep front-runners from outbidding legitimate users. Still, some market observers claim that this isn't a perfect solution. "This doesn't solve the problem of miners themselves doing the front-running," a source said. "Miners get to decide which transactions go into the block so they can continue to monitor the transaction pool for Bancor transactions and then include their own trades that profit off the pending Bancor transactions."  DEX front-running woes Indeed, Bancor isn't alone in having to worry about front-runners, which is a common problem across DEXes highlighted by the Cornell Tech study.  In August 2017, the daily profit of a front-running bot could be as high as $2500, as reported by the paper. It is also estimated that these front-running bots have generated over $6 million in total profit across several DEXes to date.  Besides capping the gas price like Bancor proposed to do, another solution to the front-running issue is a batch auction, which is favored by Gnosis-produced DutchX, which settles all deals in a given time period simultaneously and hence eliminates the time lag that gives front-runners trading advantage. However, this strategy also slows down transaction speeds on DEXes. While it takes milliseconds to do a trade on a centralized exchange, DEXes offer a trading window which may take minutes to hours with a batch auction.  Meanwhile, centralized exchanges like Binance plagued by problems of their own. Last week, Binance announced a loss of $41 million from the 6th largest hack in history. In a statement, the company said that the hackers stole "a large number of user API keys, 2FA codes, and potentially other info," which are information that is not collected by DEXes and therefore less susceptible to exchange-wide hacker attacks. 
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FINX is Now Available in Bancor Exchange, Bringing Southeast Asia's Decentralized Banking to The Next Level

KUALA LUMPUR, Malaysia, May 2, 2019 /PRNewswire/ -- FINX, the pioneering decentralized digital banking platform in Malaysia, announced its addition to Bancor Exchange Network. This allows users to securely purchase, convert, and exchange the FINX token with hundreds of tokens within the network. FINX has performed a leading blockchain technology in Southeast Asia (SEA) by simplifying the exchange process, which eliminates the third parties to secure users' private information. With FINX inclusion at Bancor Exchange, this opens a new marketplace for buyer and seller, enabling transactions at anytime seamlessly. The Bancor Formula automatically calculates the rate, with conversions made directly through the token's smart contract. ...Full story available on
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PSA: Bitconnect ‘2.0’ Triggers Countdown to Resurrect Greatest Crypto Ponzi Ever

By CCN: In 2016 a cryptocurrency project named BitConnect came along offering 1% daily compounded interest for those who purchased and staked its token. When the BitConnect (BCC) bubble inevitably burst, the owners, as expected, made off everyone’s money. The BCC token price sunk by 99.9%, and a previously $2.5 billion valued project became worthless. Now, the greatest scam ever sold is back. Enter BitConnect 2.0. Hey, Hey, Hey: BitConnect 2.0 Arrives for a Second Bite at the Cherry A website and Twitter profile advertising the arrival of BitConnect 2.0 appeared in the last few days. The website shows a The post PSA: Bitconnect ‘2.0’ Triggers Countdown to Resurrect Greatest Crypto Ponzi Ever appeared first on CCN

Scam Alert: Bitconnect ‘2.0’ Claims Binance Listing for July Launch

The return of notorious cryptocurrency ponzi scheme Bitconnect is closer than ever, its mysterious organizers claim after revealing a July launch date. Bitconnect: Unapologetically Fraudulent A fresh tweet from the Twitter account of the so-called ‘Bitconnect 2.0’ May 18 confirms the scheme is set to debut – again – on July 1. Not only that, but true to the style of deception for which the original Bitconnect became known, a fake exchange partnership has already surfaced. The owner of the Twitter account added prospective investors can purchase tokens on major cryptocurrency exchange Binance – when in fact this is simply a lie. “Welcome everyone back to Bitconnect 2.0[.] We will launch Bitconnect2.0 on July 1st,” the post reads. Welcome everyone back to Bitconnect 2.0We will launch Bitconnect2.0 on July 1stvisit our website for more Infos — Bitconnect2.0 (@Bitconnect2_0) May 18, 2019 Despite claiming further information is available on its ‘official’ website, the social media activity remains the only hint of the impending plans. The site consists only of a sign-up form for updates, a countdown timer and a duplicate of the Twitter feed. Beyond the assumed launch date, however, the operations of the latest incarnation of Bitconnect remain a mystery. As Bitcoinist reported, the original Bitconnect – ostensibly an exchange and lending platform – crashed in January 2018 after it became sufficiently known the company was fraudulent. Formerly something of celebrity meme in the crypto space, thanks mostly to events speaker Carlos Matos, the mood turned sour as Bitcoin came off its all-time highs of $20,000. Investors saw the value of their Bitconnect tokens drop to virtually nothing in minutes, with cryptocurrency industry figures lamenting that those without experience were still easy targets for scammers. Criminal proceedings followed, yet it remains unclear whether Bitconnect 2.0 has any relation to its predecessor beyond sharing a name. A Scam To Rival OneCoin On social media, reactions overwhelmingly focused on issuing warnings not to interact with the scheme, even if it should succeed in offering new tokens. Others noted the domain name will expire before the alleged launch date. Binance and CEO Changpeng Zhao (known as CZ) have yet to comment on the Twitter account’s claims of a partnership. Another entity meanwhile is attempting to gather members for a Bitconnect community on messaging platform Discord, participants already numbering close to 500. Bitconnect’s resurgence comes in line with the renaissance seen throughout Bitcoin and altcoin markets. Equally poetic is the timing following on from the ‘death’ of fellow ponzi scheme OneCoin, the founders of which spent years accruing around $4 billion. Now subject to legal action, OneCoin nevertheless succeeded in fooling the public to hand over huge amounts of money, despite warnings from various governments and associated watchdogs. What do you think about Bitconnect 2.0? Let us know in the comments below! Images via Shutterstock The post Scam Alert: Bitconnect ‘2.0’ Claims Binance Listing for July Launch appeared first on

BITCONNECT 2.0 is Here! - MY RESPONSE! - Please share this video, save kittens!

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Twitter Spoof: BitConnect 2.0 to Return in July; BCC Token to Rise from the Crypto Graveyard?

Bitcoinnect is known for its high yield investment platform The company had a cryptocurrency Bitconnect Coin (BCC) which investors bought with Bitcoin to gain a 0,25% daily interest. The company also has a lending platform and exchange which closed due to warnings from Texas and North Carolina authorities. Some unknown person is however working […]
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