[ANN] Bancor | Protocol for Smart-tokens, solving the liquidity problem

[ruletheworld]

It's a very simple question really - if a government asks the Bancor team to freeze an account, will they?

Hi! I would like to invite you to read this open letter from Bancor Co-Founder Guy Benartzi, The Road Ahead: https://ban.cr/road-ahead

That doesn't answer my question at all. I am willing to give the team the benefit of doubt here, as long as they have a roadmap to remove centralized control of BNT. With that in place, the token's utility will always be capped. There's a reason Bitcoin succeeded - there's no central point of attack/vulnerability. Unfortunately, the same cannot be said of BNT. There are all sorts of issues with this type of central control.

On a related note, I cannot imagine how their lawyers signed off on this, since the team is effectively running an exchange with custody (yes, the team takes custody of funds in the exchange - not user funds, but the reserve funds in place by other tokens), and there are all sorts of regulations to running that. Perhaps the laws are less strict in Israel?

[obsbtc]

It's a very simple question really - if a government asks the Bancor team to freeze an account, will they?

Hi! I would like to invite you to read this open letter from Bancor Co-Founder Guy Benartzi, The Road Ahead: https://ban.cr/road-ahead

That doesn't answer my question at all. I am willing to give the team the benefit of doubt here, as long as they have a roadmap to remove centralized control of BNT. With that in place, the token's utility will always be capped. There's a reason Bitcoin succeeded - there's no central point of attack/vulnerability. Unfortunately, the same cannot be said of BNT. There are all sorts of issues with this type of central control.

The Bancor Team cannot freeze an account, so this doesn't apply. Bancor was, is, and will always be a decentralized liquidity network. In a nutshell, and in practical terms, you won't stop being able to use your BNT tokens as you please out of the blue.

On a related note, I cannot imagine how their lawyers signed off on this, since the team is effectively running an exchange with custody (yes, the team takes custody of funds in the exchange - not user funds, but the reserve funds in place by other tokens), and there are all sorts of regulations to running that. Perhaps the laws are less strict in Israel?

I'm not a law maker or knowledgeable in these types of regulatory concerns, but wouldn't exchange legislation apply to exchanges only? Since Bancor isn't one, I take it existing laws for exchanges cannot apply. In addition to this, Bancor is a Swiss Foundation based and registered in Zug, not Israel.

[ruletheworld]

The Bancor Team cannot freeze an account, so this doesn't apply. Bancor was, is, and will always be a decentralized liquidity network. In a nutshell, and in practical terms, you won't stop being able to use your BNT tokens as you please out of the blue.

I never said that the Bancor Team can freeze an account. The Bancor Team can change the parameters of the BNT token and its ownership status. This implies central control, don't you agree? This has very different control characteristics for other ERC20 tokens or ETH for that matter.

I'm not a law maker or knowledgeable in these types of regulatory concerns, but wouldn't exchange legislation apply to exchanges only? Since Bancor isn't one, I take it existing laws for exchanges cannot apply. In addition to this, Bancor is a Swiss Foundation based and registered in Zug, not Israel.

Exchange laws apply when one entity has custody over funds. In this case, Bancor doesn't have custody over user funds, but via the BNT smart contract, the team has custody over the funds in the smart contract. These funds belong to individual projects/liquidity providers, i.e. these funds don't belong to the Bancor team. This means the team maintains control over funds of third parties, which is where the regulatory aspects come into play. I am not a lawyer, but the team should consult their lawyers on this matter.

As a precedence, there was a legal injunction against Ripple along similar lines i.e. one entity maintained central control over the token, and they were fined accordingly. The Ripple case is quite interesting in and of itself but also quite different from the Bancor situation, but there are parallels.

[The Cryptoclast]

Bancor Co-Founders Galia Benartzi and Eyal Hertzog speak on CNBC with Ran NeuNer about the recent security breach:

https://www.youtube.com/watch?v=kxf48BTRdPo&feature=youtu.be&t=789

I watched this interview they explained everything in details what happened and how they were able to make recover their tokens immediately. I hope in future they will be able to implement more secure features on this network and will provide a wonderful services. Waiting for to see this platform live again when they will start providing this service again.

It's great that CNBC would be interested in interviewing then on that - not many project out there would get such a good mainstream attention. Bancor is going to be mainstream sooner than most of other crypto projects.

[ivaf]

"In the future, token creator's will be able to focus on their networks, products and users, when liquidity is fair and free for all." Bancor Co-Founder Galia Benartzi talks tokenization with Arjun Kharpal on CNBC.

https://ban.cr/tokenize

[Dvd1989]

Since the $ 12 million hack, Bancor seems to have dropped by nearly 50%, and I wonder when Bancor returns to $ 4. Do I have a question why a distributed transaction platform can be hacked? I acknowledge that using a single wallet for my tokens on the ETH platform along with low transaction costs is a great thing. But the hacking of my trust in the centralized and dispersed exchanges is the same.

It’s even below ICO price at the moment. Nearly a year since ICO. I had high hopes and expectations but so far it has been a dissapointment.

[obsbtc]

The Bancor Team cannot freeze an account, so this doesn't apply. Bancor was, is, and will always be a decentralized liquidity network. In a nutshell, and in practical terms, you won't stop being able to use your BNT tokens as you please out of the blue.

I never said that the Bancor Team can freeze an account. The Bancor Team can change the parameters of the BNT token and its ownership status. This implies central control, don't you agree? This has very different control characteristics for other ERC20 tokens or ETH for that matter.

I understand. However I am not of the opinion that this constitutes central control. As Omri Cohen stated, "Decentralized does not mean lawless.". Bancor's emergency safety mechanism allowed the theft to have a lesser extent. But I'm pretty sure discussion on this matter should flourish in the upcoming times, and I take it this won't be the last regarding this, neither from users or the Team.

I'm not a law maker or knowledgeable in these types of regulatory concerns, but wouldn't exchange legislation apply to exchanges only? Since Bancor isn't one, I take it existing laws for exchanges cannot apply. In addition to this, Bancor is a Swiss Foundation based and registered in Zug, not Israel.

Exchange laws apply when one entity has custody over funds. In this case, Bancor doesn't have custody over user funds, but via the BNT smart contract, the team has custody over the funds in the smart contract. These funds belong to individual projects/liquidity providers, i.e. these funds don't belong to the Bancor team. This means the team maintains control over funds of third parties, which is where the regulatory aspects come into play. I am not a lawyer, but the team should consult their lawyers on this matter.

As a precedence, there was a legal injunction against Ripple along similar lines i.e. one entity maintained central control over the token, and they were fined accordingly. The Ripple case is quite interesting in and of itself but also quite different from the Bancor situation, but there are parallels.

Quite interesting, as I was unaware of the Ripple situation. There may be parallels, but cases are indeed a situation of "to which their own". Thanks for sharing your thoughts!

[JanuaryN]

Bancor Co-Founders Galia Benartzi and Eyal Hertzog speak on CNBC with Ran NeuNer about the recent security breach:

https://www.youtube.com/watch?v=kxf48BTRdPo&feature=youtu.be&t=789

I watched this interview they explained everything in details what happened and how they were able to make recover their tokens immediately. I hope in future they will be able to implement more secure features on this network and will provide a wonderful services. Waiting for to see this platform live again when they will start providing this service again.

It's great that CNBC would be interested in interviewing then on that - not many project out there would get such a good mainstream attention. Bancor is going to be mainstream sooner than most of other crypto projects.

Agreed, CryptoClast. Before joining forces with and getting attention from bigger names in the space, Bancor built their foundation by helping the long tail; low volume, community generated tokens. Happy to see this good organization continue its rise.

[shewasfourteen]

In the future, token creators will be able to focus on their networks, products and users, when liquidity is fair and free for all.

https://ban.cr/tokenize

[alvena]

By token bancor, nothing has disappeared, the very fact of hacking is of course very unpleasant, but I think the team will draw conclusions and will do everything possible so that such situations no longer repeat. Meanwhile, the price for Bancor is gradually beginning to recover.

[2012]

By token bancor, nothing has disappeared, the very fact of hacking is of course very unpleasant, but I think the team will draw conclusions and will do everything possible so that such situations no longer repeat. Meanwhile, the price for Bancor is gradually beginning to recover.

Even this was mentioned before about some security holes and it could lead to a big lose if someone made hack attempting on this network. But they ignored this warning in past and didn't took this seriously and now after this incident they have their focus to make secure this network and fixing all bugs there. That is the reason price is start recovering I hope in future this will become secure network.

[shewasfourteen]

Interesting use-case of Bancor Protocol by 8baseinc who built a set of smart contracts for creating decentralized derivatives on Ethereum.
https://ban.cr/8base500T T

[DashingCrypto]

By token bancor, nothing has disappeared, the very fact of hacking is of course very unpleasant, but I think the team will draw conclusions and will do everything possible so that such situations no longer repeat. Meanwhile, the price for Bancor is gradually beginning to recover.

Even this was mentioned before about some security holes and it could lead to a big lose if someone made hack attempting on this network. But they ignored this warning in past and didn't took this seriously and now after this incident they have their focus to make secure this network and fixing all bugs there. That is the reason price is start recovering I hope in future this will become secure network.

The Bancor team had implemented safety precautions to mitigate any losses from a theft like the one that occurred earlier this month.

Here's what Co-Founder Guy Benartzi had to say about this:

We encourage all responsible token issuers to follow Bancor’s example in transparently implementing emergency capabilities to protect their communities — and the industry at large — from thieves and criminals. Equally important is the ability of projects to develop upgradeable code which enables them to learn, iterate and more rapidly progress towards mass-market adoption of these important technologies.

Please see "The Road Ahead" for the rest of the article!

If you have any questions, please feel free to join the Official Telegram Group

[EyeofthebeHODLer]

Recently I Saw that your exchange was hacked , at moment everything is safe? What are you doing to improve your security cuz it's really nervous to trade in your platform

It was not hacked, there was a theft. While this might seem like semantics, it's actually a pretty important distinction. No user funds or information was compromised. Only the affected wallet and what that wallet had access to. I would recommend giving this article a full read to learn more about what exactly happened, as well as the steps that were and continue to be taken against further incidents.

[nickamazix]

Got a question that you need answered right away? Or perhaps you would just love to share your excitement for Bancor?

Come and join us in our telegram!

https://t.me/bancor

[Cam_amazix]

Be sure to join Bancor on Telegram! https://t.me/bancor

[jezus]

But it is working exchange fake hack.

[mexi.db]

But it is working exchange fake hack.

The security breach was a theft and not a hack. You might be interested in this: Bancor's VP Growth, Omri Cohen, speaks with TheCryptoZombie about security, decentralization and more. https://ban.cr/CryptoZombie

[jtalk]

I will expect more security measure's from Bancor's team they had left opened emergency feature to freeze the asset. But this helped them alone wouldn't be better to be taken some extra measure for the tokens which are in their hot wallet. That theft have damaged those effected tokens which were having nice growth and lost the momentum. On decentralized exchanges smart contracts play role of trusted party if there is issue then what can you do. Smart contracts exploitation has caused in past such incidents as well.

[Tarasov1992]

I will expect more security measure's from Bancor's team they had left opened emergency feature to freeze the asset. But this helped them alone wouldn't be better to be taken some extra measure for the tokens which are in their hot wallet. That theft have damaged those effected tokens which were having nice growth and lost the momentum. On decentralized exchanges smart contracts play role of trusted party if there is issue then what can you do. Smart contracts exploitation has caused in past such incidents as well.

Hello, Jtalk. As per the latest update from the team, they have managed to recover half of the funds already. Did you watch the latest discussion of the breach here:
https://www.youtube.com/watch?v=kxf48BTRdPo&feature=youtu.be&t=789 ?