[ANN][VRC] VeriCoin Proof of Stake-Time Currency | New Roadmap Released

[MAD945]

look guys what happens when the pumpers take a break.......mintpal VRC trading dies im observing that for 10min now.

Sure we still have half of the volume on MINT...and a lot of holders! Whats your point?

[1714037979]

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[1714037979]

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[tylerderden]

One question about VeriBit:

If the markets starts to crash, and ppl will liquidate vrc to btc through the veribit, will the btc buffer take market depth into account or can i get a better price of my VRC via veribit in a fast declining market? That would make the buffer bleed.

Edit:
Thinking of this some more. If we have a crashing market, veribit makes it even easier for users to dump VRC directly from wallet and you will probably get a better price than transferring to exchange, waiting for confirmation and trading.
This would accelerate the crash and bleed out the veribit buffer.

Anyone?

To add to this:
If i think price is falling, i can open up a veribit address for my mintpal btc deposit address and wait. If price drops, i can sell my vrc for the price 15 minutes ago and buy back lower. If it doesn't, i can just cancel the transaction.

Or have I misunderstood? Looks like bear market trading without risk. Of course it will consume the btc buffer in veribit

My friend just mentioned this to me, and yes you can do this over and over risk free. You could even create a bot to do this and grab money on every drop. Open multiple instances at a time to maximize profits.

The moment this happens, the buffer goes up from 2 VRC to make it unprofitable until a solution is found. You all really don't troll well.


As with everything new, its being done on a small scale to weed out shitheads like you who take advantage of a good thing.

Actually, actions of you and people like you help strengthen and motivate teams like VeriCoin to progress and make them more secure.



So troll away, an issue of today, is a solution of tomorrow.  

You are getting mad because the designers didn't think far enough ahead to prevent obvious problems, this isn't an issue of trolls its an issue of bad design. If the price is raised to 2 VRC you just modify the bot to look for larger margins. If the solution is to continue to raise the fee then to what end, the feature becomes pointless because its unsustainable?

This is hacking not trolling, looking at how systems work and seeing how they can break. If they can't stand up to scrutinity then the system isn't good. This is why most good code is written in the open, unlike much of vericoins features which are closed source rush jobs.

Okay, so. To make this work, you need to BUY the VeriCoin, to make it drop in price?

Your logic in this is awesome. I am sure more brilliant minds like you are jumping in to Buy VeriCoin, to sell it in hopes of making a few % when they get it to crash?

Am I missing something? How is this intelligent in your eyes?

The intention is not the make the price drop, the intention is to have risk free arbitrage.

For example:

You could constantly initiate say 5 1 BTC veribit trades. Save the prices of each trade and set a timer on them.

-- Initiates 5 trades where the value is 2200 per bitcoin

Over 14 minutes, check the prices on the markets using their API and compare the price differences.

IF -- Price drops significantly, so the new value is 3200 per bitcoin.

If the price fluctuates downward within the timeframe, we send the VRC we hold to veribit. Collect our 5 BTC, making a total of 5000 VRC.

ELSE IF -- Price doesn't drop

We let the trades lapse.



Doing this enough times could equate to a large amount of money with zero risk. If they raise the cost of the conversions, you just adjust the range which you would buy the bitcoins. You could even thread this process so you are doing it constantly. If it goes up you win, if it goes down you win. You are basically forcing the developers who didn't think enough about this feature to eat your losses.

I can write a simple golang script that does this about an hour, I could make a really refined one in a night.

 LOL!!!!!!! #Verifud

[criptix]

Does anyone know if the wallet encryption key can be backed up?  Is it backed up with the wallet backup?

I'm asking because I'd like to know if an encrypted wallet backup can be restored on another computer.  I just don't have time to dig in the code right now...

im not sure if i understand your question.

If you want to know if you can restore an encrypted wallet, then the answer is yes (if you have your passphrase of course).

If you want to know if you can restore the Passphrase of your encrypted wallet, then no.

Thanks, the first answer is what I was asking about.  I'm going to test this out in a few minutes with a small wallet on an old computer.

1. Install wallet.
2. Encrypt wallet.
3. Send 1 VRC to it.
4. Stake wallet.
5. Backup wallet.
6. Copy wallet backup to another computer and import the wallet.
7. Just for fun, I'm wondering what will happen if the wallet is open on two computers...

Wallet installs take a while, even with the bootstrap.  Here's were I am, stuck at step 6.  Thinking I would save some time, I installed the wallet on computer#2, and declined the "import wallet" step during installation. Now that it is installed, I have no option to import a wallet.  I tried uninstalling vericoin and reinstalling, but I was not offered an import step.  How can you import a wallet after you have installed vericoin?

no problem, just install the vericoin wallet and then move your wallet.dat (the backup of your wallet) to C:\Users\Username\AppData\Roaming\VeriCoin
if your backup is not called wallet.dat, you need to rename it.

Thanks, that worked.  Perhaps this could be a user friendly feature for the next version of the wallet.

So the live wallet is stored in AppData even though I installed VeriCoin to an encrypted folder, which defeats the purpose of installing VeriCoin to an encrypted drive or folder.  I know the wallet is encrypted after I manually tell it to encrypt it, but some wallets are not (by default).  If you thought you were encrypting it by installing to an encrypted folder, you are wrong.  Food for thought...

EDIT: Step 7 was fun.

you can move that folder into a encrypted drive, thats no problem, just need to tell the exe where you moved the folder to:

 -datadir="location_of_vericoin_folder"

/edit

aslong as your wallet.dat is encrypted (just use the encrypt option of the wallet) everything is good.
its not feaseable to bruteforce :8

[virtualfaqs]

Will Vericoin pay taxes and will that be public record?

i think as long as bitcoin does it, vericoin is good to go  

My concern is whoever controls VeriFund has to pay taxes. Everytime someone uses VeriSend, Veribit, or in the future pay with credit card is a taxable event. I'm not 100% sure how Verisend works, but changing Vericoins to BTC is technically a taxable event. Buying VRC with credit cards in the future definitely will be.

Are you a tax professional?

Or are you assuming this? What is your background in this field?

I'll say it again, here are tax laws im assuming you feel are being violated.



State and local revenue (income) taxes

Again, there's no general rule that applies in every state and city. Sometimes all nonprofit income is exempt. Sometimes it matters how the income was earned, or what it's for. Sometimes the state or local rules parallel the federal tax statutes; sometimes they are completely different.


So where is the specific issue?

I'm not a tax expert, but it looks like Capital gains to me. Or VeriFund looks like a business and needs the proper licensing and records. VeriFund operates like Bittrex right now basically a US non-fiat exchange.

[pnosker]

One question about VeriBit:

If the markets starts to crash, and ppl will liquidate vrc to btc through the veribit, will the btc buffer take market depth into account or can i get a better price of my VRC via veribit in a fast declining market? That would make the buffer bleed.

Edit:
Thinking of this some more. If we have a crashing market, veribit makes it even easier for users to dump VRC directly from wallet and you will probably get a better price than transferring to exchange, waiting for confirmation and trading.
This would accelerate the crash and bleed out the veribit buffer.

Anyone?

To add to this:
If i think price is falling, i can open up a veribit address for my mintpal btc deposit address and wait. If price drops, i can sell my vrc for the price 15 minutes ago and buy back lower. If it doesn't, i can just cancel the transaction.

Or have I misunderstood? Looks like bear market trading without risk. Of course it will consume the btc buffer in veribit

My friend just mentioned this to me, and yes you can do this over and over risk free. You could even create a bot to do this and grab money on every drop. Open multiple instances at a time to maximize profits.

The moment this happens, the buffer goes up from 2 VRC to make it unprofitable until a solution is found. You all really don't troll well.


As with everything new, its being done on a small scale to weed out shitheads like you who take advantage of a good thing.

Actually, actions of you and people like you help strengthen and motivate teams like VeriCoin to progress and make them more secure.



So troll away, an issue of today, is a solution of tomorrow.  

You are getting mad because the designers didn't think far enough ahead to prevent obvious problems, this isn't an issue of trolls its an issue of bad design. If the price is raised to 2 VRC you just modify the bot to look for larger margins. If the solution is to continue to raise the fee then to what end, the feature becomes pointless because its unsustainable?

This is hacking not trolling, looking at how systems work and seeing how they can break. If they can't stand up to scrutinity then the system isn't good. This is why most good code is written in the open, unlike much of vericoins features which are closed source rush jobs.

Okay, so. To make this work, you need to BUY the VeriCoin, to make it drop in price?

Your logic in this is awesome. I am sure more brilliant minds like you are jumping in to Buy VeriCoin, to sell it in hopes of making a few % when they get it to crash?

Am I missing something? How is this intelligent in your eyes?

The intention is not the make the price drop, the intention is to have risk free arbitrage.

For example:

You could constantly initiate say 5 1 BTC veribit trades. Save the prices of each trade and set a timer on them.

-- Initiates 5 trades where the value is 2200 per bitcoin

Over 14 minutes, check the prices on the markets using their API and compare the price differences.

IF -- Price drops significantly, so the new value is 3200 per bitcoin.

If the price fluctuates downward within the timeframe, we send the VRC we hold to veribit. Collect our 5 BTC, making a total of 5000 VRC.

ELSE IF -- Price doesn't drop

We let the trades lapse.



Doing this enough times could equate to a large amount of money with zero risk. If they raise the cost of the conversions, you just adjust the range which you would buy the bitcoins. You could even thread this process so you are doing it constantly. If it goes up you win, if it goes down you win. You are basically forcing the developers who didn't think enough about this feature to eat your losses.

I can write a simple golang script that does this about an hour, I could make a really refined one in a night.

Thanks for pointing this out. Our algorithm that defines pricing takes this into consideration and considers market trend in the quoted value. It's attackable, but it won't be gainful as each VeriBit quote affects our realtime quote engine by "pretending" to trade and reducing the value of VRC while a pending trade is within the time window.

Will Vericoin pay taxes and will that be public record?

i think as long as bitcoin does it, vericoin is good to go 

My concern is whoever controls VeriFund has to pay taxes. Everytime someone uses VeriSend, Veribit, or in the future pay with credit card is a taxable event. I'm not 100% sure how Verisend works, but changing Vericoins to BTC is technically a taxable event. Buying VRC with credit cards in the future definitely will be.

Are you a tax professional?

Or are you assuming this? What is your background in this field?

I'll say it again, here are tax laws im assuming you feel are being violated.



State and local revenue (income) taxes

Again, there's no general rule that applies in every state and city. Sometimes all nonprofit income is exempt. Sometimes it matters how the income was earned, or what it's for. Sometimes the state or local rules parallel the federal tax statutes; sometimes they are completely different.


So where is the specific issue?

I'm not a tax expert, but it looks like Capital gains to me. Or VeriFund looks like a business and needs the proper licensing and records. VeriFund operates like Bittrex right now basically a US non-fiat exchange.

VeriFund is simply a fund that swings back and forth from VRC to BTC. It does not fall under US tax code as there is never any conversion to FIAT and thus is just one property trading for another.

[yourstruly]

One question about VeriBit:

If the markets starts to crash, and ppl will liquidate vrc to btc through the veribit, will the btc buffer take market depth into account or can i get a better price of my VRC via veribit in a fast declining market? That would make the buffer bleed.

Edit:
Thinking of this some more. If we have a crashing market, veribit makes it even easier for users to dump VRC directly from wallet and you will probably get a better price than transferring to exchange, waiting for confirmation and trading.
This would accelerate the crash and bleed out the veribit buffer.

Anyone?

To add to this:
If i think price is falling, i can open up a veribit address for my mintpal btc deposit address and wait. If price drops, i can sell my vrc for the price 15 minutes ago and buy back lower. If it doesn't, i can just cancel the transaction.

Or have I misunderstood? Looks like bear market trading without risk. Of course it will consume the btc buffer in veribit

My friend just mentioned this to me, and yes you can do this over and over risk free. You could even create a bot to do this and grab money on every drop. Open multiple instances at a time to maximize profits.

The moment this happens, the buffer goes up from 2 VRC to make it unprofitable until a solution is found. You all really don't troll well.


As with everything new, its being done on a small scale to weed out shitheads like you who take advantage of a good thing.

Actually, actions of you and people like you help strengthen and motivate teams like VeriCoin to progress and make them more secure.



So troll away, an issue of today, is a solution of tomorrow.  

You are getting mad because the designers didn't think far enough ahead to prevent obvious problems, this isn't an issue of trolls its an issue of bad design. If the price is raised to 2 VRC you just modify the bot to look for larger margins. If the solution is to continue to raise the fee then to what end, the feature becomes pointless because its unsustainable?

This is hacking not trolling, looking at how systems work and seeing how they can break. If they can't stand up to scrutinity then the system isn't good. This is why most good code is written in the open, unlike much of vericoins features which are closed source rush jobs.

Okay, so. To make this work, you need to BUY the VeriCoin, to make it drop in price?

Your logic in this is awesome. I am sure more brilliant minds like you are jumping in to Buy VeriCoin, to sell it in hopes of making a few % when they get it to crash?

Am I missing something? How is this intelligent in your eyes?

The intention is not the make the price drop, the intention is to have risk free arbitrage.

For example:

You could constantly initiate say 5 1 BTC veribit trades. Save the prices of each trade and set a timer on them.

-- Initiates 5 trades where the value is 2200 per bitcoin

Over 14 minutes, check the prices on the markets using their API and compare the price differences.

IF -- Price drops significantly, so the new value is 3200 per bitcoin.

If the price fluctuates downward within the timeframe, we send the VRC we hold to veribit. Collect our 5 BTC, making a total of 5000 VRC.

ELSE IF -- Price doesn't drop

We let the trades lapse.



Doing this enough times could equate to a large amount of money with zero risk. If they raise the cost of the conversions, you just adjust the range which you would buy the bitcoins. You could even thread this process so you are doing it constantly. If it goes up you win, if it goes down you win. You are basically forcing the developers who didn't think enough about this feature to eat your losses.

I can write a simple golang script that does this about an hour, I could make a really refined one in a night.

Darkcoin holders are D E S P E R A TE !!!!!   How is your insta-mine broken ass scamcoin going??? LOL!!!!!!! #Verifud

While, I'm giving real legit critique, you are acting like an immature moron.

[pnosker]

Thanks to the possible partial-exploit, web-based VeriBit now requires sends to be within 2 minutes of generating the address. We will be removing web-based VeriBit and VeriSend support in the near future due to wallet integration.

[jobnotfound]

and there you have it. Quick, simple and transparent reply.

Vericoin Dev team once again showing it's colors. I'm continually impressed by you guys.

[pnosker]

While, I'm giving real legit critique, you are acting like an immature moron.

I appreciate it. Thanks for bringing to our attention a possible exploit (though I don't think it would have profited much). Please PM me a VRC address for a bug bounty.

[onsightit]

Does anyone know if the wallet encryption key can be backed up?  Is it backed up with the wallet backup?

I'm asking because I'd like to know if an encrypted wallet backup can be restored on another computer.  I just don't have time to dig in the code right now...

im not sure if i understand your question.

If you want to know if you can restore an encrypted wallet, then the answer is yes (if you have your passphrase of course).

If you want to know if you can restore the Passphrase of your encrypted wallet, then no.

Thanks, the first answer is what I was asking about.  I'm going to test this out in a few minutes with a small wallet on an old computer.

1. Install wallet.
2. Encrypt wallet.
3. Send 1 VRC to it.
4. Stake wallet.
5. Backup wallet.
6. Copy wallet backup to another computer and import the wallet.
7. Just for fun, I'm wondering what will happen if the wallet is open on two computers...

Wallet installs take a while, even with the bootstrap.  Here's were I am, stuck at step 6.  Thinking I would save some time, I installed the wallet on computer#2, and declined the "import wallet" step during installation. Now that it is installed, I have no option to import a wallet.  I tried uninstalling vericoin and reinstalling, but I was not offered an import step.  How can you import a wallet after you have installed vericoin?

no problem, just install the vericoin wallet and then move your wallet.dat (the backup of your wallet) to C:\Users\Username\AppData\Roaming\VeriCoin
if your backup is not called wallet.dat, you need to rename it.

Thanks, that worked.  Perhaps this could be a user friendly feature for the next version of the wallet.

So the live wallet is stored in AppData even though I installed VeriCoin to an encrypted folder, which defeats the purpose of installing VeriCoin to an encrypted drive or folder.  I know the wallet is encrypted after I manually tell it to encrypt it, but some wallets are not (by default).  If you thought you were encrypting it by installing to an encrypted folder, you are wrong.  Food for thought...

EDIT: Step 7 was fun.

you can move that folder into a encrypted drive, thats no problem, just need to tell the exe where you moved the folder to:

 -datadir="location_of_vericoin_folder"

/edit

aslong as your wallet.dat is encrypted (just use the encrypt option of the wallet) everything is good.
its not feaseable to bruteforce :8

Another friendly feature for the next wallet - "where do you want your wallet stored".  I should know all this stuff, but turning from programmer to trader has caused me to lose my mind. ;-)

Thanks

[virtualfaqs]

VeriFund is simply a fund that swings back and forth from VRC to BTC. It does not fall under US tax code as there is never any conversion to FIAT and thus is just one property trading for another.

If that's true, then Bittrex wouldn't have to pay any taxes under the US tax code either. Until they convert to fiat you mean. But something still seems to be missing as that would mean you could operate a non-fiat exchange and never report a profit until you exchange to fiat.

[leckey]

VeriFund is simply a fund that swings back and forth from VRC to BTC. It does not fall under US tax code as there is never any conversion to FIAT and thus is just one property trading for another.

If that's true, then Bittrex wouldn't have to pay any taxes under the US tax code either. Until they convert to fiat you mean. But something still seems to be missing as that would mean you could operate a non-fiat exchange and never report a profit until you exchange to fiat.

That's exactly how it works to my understanding

[pnosker]

VeriFund is simply a fund that swings back and forth from VRC to BTC. It does not fall under US tax code as there is never any conversion to FIAT and thus is just one property trading for another.

If that's true, then Bittrex wouldn't have to pay any taxes under the US tax code either. Until they convert to fiat you mean. But something still seems to be missing as that would mean you could operate a non-fiat exchange and never report a profit until you exchange to fiat.

VeriFund doesn't sell to fiat, it just pays bounties. Bittrex takes fees and pays people.

[yourstruly]

VSRU4HRgtqHifQaXN3QkQrdTRHdWLwUGZj

Here is the untested simple example code I threw together. Obviously I could write this to be much more sophisticated but I wanted to get my point across. I think lowering the time to two minutes will help but I think there is still a fair amount of exposure, since I can stagger the trades. Also would I not be able to extract the API calls from your client? How does removing the web-interface resolve the problem besides adding a bit more work?

We can talk in private about how you can better secure this system if you are interested.

require 'net/http'
require 'json'

# Would need to write code to manage number of threads
# and stagger their start times to maximize attack surface
#Thread.new do
  while true
    @time_up = Time.now + (60*2)

    uri = URI('http://verisend.vericoin.info/Default/SendBtc?sendto=1NsqLEmk7bckyxocJToBYmgkte2j5KMGZp&amount=1')
    arbitrage = Net::HTTP.get(uri)
    @vrc_amount = arbitrage.split(' ')[1]
    @vrc_address = arbitrage.split(' ')[4]
    p @vrc_amount
    p @vrc_address

    while @time_up > Time.now
      p "Time remaining: #{@time_up - Time.now}"

      uri = URI('https://api.mintpal.com/v1/market/stats/VRC/BTC')
      market_data = JSON.parse(Net::HTTP.get(uri)).first
      last_price = market_data['last_price']
      # You would need to add in trading fees
      price_per_bitcoin = 1 / last_price.to_f
      p price_per_bitcoin
      if @vrc_amount.to_f < price_per_bitcoin
        difference = price_per_bitcoin - @vrc_amount.to_f
        p "Difference of #{difference}"
        if difference > 500
          p "Good time to send money!"
          system("./vericoind sendmoneyto #{vrc_address} #{@vrc_amount}")
        end
      end
    end
    p "Times up! Time to try again!"
  end
#end

[HoodRich]

VeriFund is simply a fund that swings back and forth from VRC to BTC. It does not fall under US tax code as there is never any conversion to FIAT and thus is just one property trading for another.

If that's true, then Bittrex wouldn't have to pay any taxes under the US tax code either. Until they convert to fiat you mean. But something still seems to be missing as that would mean you could operate a non-fiat exchange and never report a profit until you exchange to fiat.

Hence the word "unregulated". That is one of the main reasons crypto currencies were created. You guys are talking about the IRS and FED like they are U.S. Governmental Entities. You do realize that the IRS, like the FED is not a part of the US Government? Right?

Are you paying taxes on all of your crypto trades? Is anyone?

Americans were 100% against the Central Banks and Income taxes. Now, after a century of brainwashing, you do not know how to live without them. You think being taxed is normal.

Nutts...

[pnosker]

VSRU4HRgtqHifQaXN3QkQrdTRHdWLwUGZj

Here is the untested simple example code I threw together. Obviously I could write this to be much more sophisticated but I wanted to get my point across. I think lowering the time to two minutes will help but I think there is still a fair amount of exposure, since I can stagger the trades. Also would I not be able to extract the API calls from your client? How does removing the web-interface resolve the problem besides adding a bit more work?

We can talk in private about how you can better secure this system if you are interested.

require 'net/http'
require 'json'

# Would need to write code to manage number of threads
# and stagger their start times to maximize attack surface
#Thread.new do
  while true
    @time_up = Time.now + (60*2)

    uri = URI('http://verisend.vericoin.info/Default/SendBtc?sendto=1NsqLEmk7bckyxocJToBYmgkte2j5KMGZp&amount=1')
    arbitrage = Net::HTTP.get(uri)
    @vrc_amount = arbitrage.split(' ')[1]
    @vrc_address = arbitrage.split(' ')[4]
    p @vrc_amount
    p @vrc_address

    while @time_up > Time.now
      p "Time remaining: #{@time_up - Time.now}"

      uri = URI('https://api.mintpal.com/v1/market/stats/VRC/BTC')
      market_data = JSON.parse(Net::HTTP.get(uri)).first
      last_price = market_data['last_price']
      # You would need to add in trading fees
      price_per_bitcoin = 1 / last_price.to_f
      p price_per_bitcoin
      if @vrc_amount.to_f < price_per_bitcoin
        difference = price_per_bitcoin - @vrc_amount.to_f
        p "Difference of #{difference}"
        if difference > 500
          p "Good time to send money!"
          system("./vericoind sendmoneyto #{vrc_address} #{@vrc_amount}")
        end
      end
    end
    p "Times up! Time to try again!"
  end
#end

I've sent you a bug bounty of 250 VRC (or around $75+). Thanks again for your help. 2 minutes is just for now. We will reduce it to be less than 10 seconds as the wallet client is instanteous at sending commands (no copy and pasting, etc.). Removing the web interface just because it's unnecessary now that the client is working well. So staggering 10 second trade windows wouldn't be super effective. Anyway, thanks for bringing this to our attention.

[yourstruly]

VSRU4HRgtqHifQaXN3QkQrdTRHdWLwUGZj

Here is the untested simple example code I threw together. Obviously I could write this to be much more sophisticated but I wanted to get my point across. I think lowering the time to two minutes will help but I think there is still a fair amount of exposure, since I can stagger the trades. Also would I not be able to extract the API calls from your client? How does removing the web-interface resolve the problem besides adding a bit more work?

We can talk in private about how you can better secure this system if you are interested.

require 'net/http'
require 'json'

# Would need to write code to manage number of threads
# and stagger their start times to maximize attack surface
#Thread.new do
  while true
    @time_up = Time.now + (60*2)

    uri = URI('http://verisend.vericoin.info/Default/SendBtc?sendto=1NsqLEmk7bckyxocJToBYmgkte2j5KMGZp&amount=1')
    arbitrage = Net::HTTP.get(uri)
    @vrc_amount = arbitrage.split(' ')[1]
    @vrc_address = arbitrage.split(' ')[4]
    p @vrc_amount
    p @vrc_address

    while @time_up > Time.now
      p "Time remaining: #{@time_up - Time.now}"

      uri = URI('https://api.mintpal.com/v1/market/stats/VRC/BTC')
      market_data = JSON.parse(Net::HTTP.get(uri)).first
      last_price = market_data['last_price']
      # You would need to add in trading fees
      price_per_bitcoin = 1 / last_price.to_f
      p price_per_bitcoin
      if @vrc_amount.to_f < price_per_bitcoin
        difference = price_per_bitcoin - @vrc_amount.to_f
        p "Difference of #{difference}"
        if difference > 500
          p "Good time to send money!"
          system("./vericoind sendmoneyto #{vrc_address} #{@vrc_amount}")
        end
      end
    end
    p "Times up! Time to try again!"
  end
#end

I've sent you a bug bounty of 250 VRC (or around $75+). Thanks again for your help. 2 minutes is just for now. We will reduce it to be less than 10 seconds as the wallet client is instanteous at sending commands (no copy and pasting, etc.). Removing the web interface just because it's unnecessary now that the client is working well. So staggering 10 second trade windows wouldn't be super effective. Anyway, thanks for bringing this to our attention.

I appreciate the calm well reasoned response, I'm not here to champion any specific coin - that is what day traders do. I'm a developer is very interested in the overall health of the ecosystem as a whole. Which is why I think you should release all the code open source that runs on the server so it can be properly audited by the community.

[pnosker]

VSRU4HRgtqHifQaXN3QkQrdTRHdWLwUGZj

Here is the untested simple example code I threw together. Obviously I could write this to be much more sophisticated but I wanted to get my point across. I think lowering the time to two minutes will help but I think there is still a fair amount of exposure, since I can stagger the trades. Also would I not be able to extract the API calls from your client? How does removing the web-interface resolve the problem besides adding a bit more work?

We can talk in private about how you can better secure this system if you are interested.

require 'net/http'
require 'json'

# Would need to write code to manage number of threads
# and stagger their start times to maximize attack surface
#Thread.new do
  while true
    @time_up = Time.now + (60*2)

    uri = URI('http://verisend.vericoin.info/Default/SendBtc?sendto=1NsqLEmk7bckyxocJToBYmgkte2j5KMGZp&amount=1')
    arbitrage = Net::HTTP.get(uri)
    @vrc_amount = arbitrage.split(' ')[1]
    @vrc_address = arbitrage.split(' ')[4]
    p @vrc_amount
    p @vrc_address

    while @time_up > Time.now
      p "Time remaining: #{@time_up - Time.now}"

      uri = URI('https://api.mintpal.com/v1/market/stats/VRC/BTC')
      market_data = JSON.parse(Net::HTTP.get(uri)).first
      last_price = market_data['last_price']
      # You would need to add in trading fees
      price_per_bitcoin = 1 / last_price.to_f
      p price_per_bitcoin
      if @vrc_amount.to_f < price_per_bitcoin
        difference = price_per_bitcoin - @vrc_amount.to_f
        p "Difference of #{difference}"
        if difference > 500
          p "Good time to send money!"
          system("./vericoind sendmoneyto #{vrc_address} #{@vrc_amount}")
        end
      end
    end
    p "Times up! Time to try again!"
  end
#end

I've sent you a bug bounty of 250 VRC (or around $75+). Thanks again for your help. 2 minutes is just for now. We will reduce it to be less than 10 seconds as the wallet client is instanteous at sending commands (no copy and pasting, etc.). Removing the web interface just because it's unnecessary now that the client is working well. So staggering 10 second trade windows wouldn't be super effective. Anyway, thanks for bringing this to our attention.

I appreciate the calm well reasoned response, I'm not here to champion any specific coin - that is what day traders do. I'm a developer is very interested in the overall health of the ecosystem as a whole. Which is why I think you should release all the code open source that runs on the server so it can be properly audited by the community.

Thanks. We are not going to open source it immediately. It's not really useful to audit our code as it's really a service more than coin related. As long as people aren't complaining about it swallowing up their VRC, I don't see a problem with a closed-source app written for the coin. Thanks again, and let me know if you see any other potential exploits and we will send more bug bounties your way.

[virtualfaqs]

VeriFund is simply a fund that swings back and forth from VRC to BTC. It does not fall under US tax code as there is never any conversion to FIAT and thus is just one property trading for another.

If that's true, then Bittrex wouldn't have to pay any taxes under the US tax code either. Until they convert to fiat you mean. But something still seems to be missing as that would mean you could operate a non-fiat exchange and never report a profit until you exchange to fiat.

VeriFund doesn't sell to fiat, it just pays bounties. Bittrex takes fees and pays people.

The IRS has not given any guidance whether trading BTC for altcoin is considered "same kind" or "different kind" property. But some people are paying the capital gains on their altcoin trades to be on the safe side. The problem here is if the IRS says, "Altcoin is considered different properties." Now all of a sudden every single BTC purchased by VeriFund is a taxable event. That's what I'm worried about.

I'm curious how Bittrex deals with this. I'll ask them and see how they answer.

[yourstruly]

Pretty sure I was able to crash veribit with a few lines of code. I'll stop once I prove it works.