V. Buterin: "Minners can lost their business due to POS"

Vitalike Buterin shared his thoughts on the current state of cryptocurrencies world
11 September 2017   1761

Vitalik Buterin, creator of Ethereum, one of the most popular person in cryptocurrency world, recently gave an interview for a Russian issue "Commersant".

When we will migrate to the Proof-of-Stake protocol, even at the first stage the need for mining will drop dramatically. Proof-of-Stake uses an algorithm that doesn't require large number of computers constantly make calculations. This is an algorithm where a coin is used inside the platform itself. The consensus will become much cheaper and safer. And in fact, miners can lose their business.

Vitalik Buterin
Creator of Ethereum

Vitalik also reported about the risks for cryptocurrency owners.

The biggest risk is financial. Much is said about this and I am no exception. The market is very volatile now. This affects both large crypto-currencies and ICO-projects. A bubble can burst at any moment, and projects can lose a lot of money at once. 

He also believes that there are risks in the fact that interest to the blockchain is growing too fast, because the technology itself is not yet ready to accept all this interest. 

This situation has now developed with bitcoin. There are not enough room in the blockchain, it's becoming more and more difficult to use, the commissions are growing. In Ethereum, it [the commission] is still less than one cent. We do not intend to divide the ETH, as it was done with bitcoin, it is not necessary, but the risks still remain.

Vitalik Buterin
Creator of Ethereum

In addition, according to Buterin, the risk remains high for fraud.

Any technology can be used for bad purposes. And ours, unfortunately, too - no matter how much we wish this would not happen. We can not guarantee 100% security.

Vitalik Buterin
Creator of Ethereum

Looking into the foreseeable future, Buterin believes that the types of fraud associated with using other people's data will be relevant, when one person impersonates another. This kind of fraud, he says, is practically ineradicable and will live for a very long time.

There are also new types of fraud, for example, related to competencies.

So, companies that issue smart contracts can issue a contract with a deliberate code error that allows them to withdraw all the money. Such a case was recently recorded in our community. And it's good that this happened on a small scale - this allows us to learn and set ourselves the task of minimizing such risks.

Vitalik Buterin
Creator of Ethereum

Additionally, Vitalik notes the growth of fraud in the ICO market, when fraudsters give out a fake ICO for a real project with the help of fake sites, collecting several thousand dollars from investors and disappearing in an unknown direction. 

SEC to Accuse Veritaseum ICO of Fraud

SEC believes that project's tokensale, thru which it raised $14.8M back in 2017-2018 had a signs of scam and company misled the investors
14 August 2019   174

The U.S. Securities and Exchange Commission (SEC) has sued New Yorker  and Veritaseum-related companies that have been caught by the agency in conducting an unregistered ICO with signs of fraud. It is reported by Cointelegraph.

According to documents published on the network, the SEC intends to hold Reggie Middleton accountable and immediately freeze the assets of Veritaseum Inc. and Veritaseum LLC.

The Commission claims that the defendants raised about $ 14.8 million through an initial coin offering (ICO) in 2017 - early 2018. At the same time, many investors were misled, as the company distorted information about the conditions of the token sale and deliberately hid some significant details.

The American regulator claims that the project still has about $ 8 million of illegally raised funds. According to the SEC, these assets must be frozen immediately.

Amid this news, the Veritaseum (VERI) rate has fallen by 70%. Now the coin is trading near the $ 5 mark, although at the beginning of 2018 its rate was approaching $ 500.

Veritaseum was created as a financial p2p platform, involving the movement of capital without traditional intermediaries. Also, VERI was positioned as a utility token for use in consulting services and access to various research works.

In 2017, Veritaseum blockchain startup fell victim to hackers, having lost $ 8.4 million from ICO investors.