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    Crypto Valley Journal
    You are at:Home»Markets»Market Review»Daily market commentary from 22.04.2020
    market commentary

    Daily market commentary from 22.04.2020

    By Patrick Heusser on 22. April 2020 Market Review

    Market Commentary von Patrick Heusser, Crypto Finance AG

    Good Morning!

    The Lendf.Me hacker returned the money.

    The CEO of Lendf.Me announced yesterday that almost all of the hacked tokens have been returned. Read more about it here: Lendf.Me Update and Action Plan.

    However, when you dig a bit deeper into various Twitter threads, it looks like the hacker was rather dumb in the execution of transferring the tokens. See here.

    Was the pressure too high for the hacker?

    Some people have been speculating that the community and Singaporean law enforcement pressured the hacker to transfer the tokens back. Again, I am not sure if this was a smart move since s/he is still liable for the crime, but now empty-handed.

    Also, in the past, hacks such as the one Lendf.Me experienced, were done "in good faith". This means that the hacker never had the intention of keeping the money, but wanted to get paid for showing the vulnerability of the system. Usually, this does not happen in public as the reputational damage is very high and could even outweigh the actual vulnerability of the system.

    Incident should help in the development of the existing system

    In the end, this incident should make the Lendf.Me platform more secure, and it is a good example for new and upcoming projects on how not to make the same mistakes and how to build better more secure systems.

    I also hope that the community is able to distinguish between a Ponzi scheme and a weakness in the system. When the news broke, many Twitter users exclaimed: "They ran with the money". This was obviously not the case.

    Here is a case of an actual Ponzi scheme, which just surfaced yesterday:
    A Chinese EOS-based wallet app reportedly shuts down, leaving $52M in user funds inaccessible

    As long as greed has such a powerful hold on so many people, Ponzi schemes will happen over and over again.

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    About the author

    Patrick Heusser

      Patrick Heusser is Head of Trading at Crypto Broker AG. Prior to joining the company, Patrick worked as an Interest Rate Trader at UBS and held various positions in the IRCC (interest rate, commodity and foreign exchange trading) in London, New York, Singapore and Zurich. Patrick is an expert in trading and risk management. He also gained experience in other areas, such as building start-up companies. Patrick has a degree in banking from a business school. He has also taken various courses in technical chart analysis.

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