
We Got Spanked: What We Know So Far - wglb
https://medium.com/spankchain/we-got-spanked-what-we-know-so-far-d5ed3a0f38fe
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jpatokal
> _1271.88 BOOTY belongs to users (~$9,300 total), and the rest belonged to
> SpankChain._

Somehow my sympathy for anybody who invests in a cryptocurrency called BOOTY
that's stored on a SpankChain is somewhat limited. Particularly since, once
again, the money wasn't really "hacked" or "stolen", just taken by somebody
who exploited a contract. Code is law, right?

> _It was our decision to forego a security audit for the payment channel
> contract._

...and I don't have a lot of sympathy for SpankChain people either.

~~~
spanktosh1
What makes you think we want your sympathy?

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jboggan
I remember meeting one of the technical cofounders of SpankChain the weekend
of their ICO. He was very tired but excited to be done with the project and
onto his next ICO idea. He was adamant about not having his name attached to
it. It didn't strike me as a very serious project for that reason, among
others.

~~~
spanktosh1
I fired him.

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PhasmaFelis
Could someone explain what's happening in the update at the top? It sounds
like they got in touch with the guy who stole their money, convinced him to
give it back, and then...tipped him a total of $9000 as a reward
for...something? That can't be right, can it?

~~~
woah
It is right, they say it is cheaper than most audits.

~~~
spanktosh1
The hacker was also kind enough to audit two of our other contracts pro-bono
:)

~~~
PhasmaFelis
Does that mean he actually gave you a thorough audit, or that he tried to
crack them and failed and you assume that means they're solid?

If the former, do you have reason to believe that he's trustworthy?

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Moodles
Probably a pointless question but why is there a blockchain here?

~~~
spanktosh1
From the intro of the whitepaper:

[https://spankchain.com/static/SpankChain%20Whitepaper%20(EN)...](https://spankchain.com/static/SpankChain%20Whitepaper%20\(EN\).pdf)

The $100B adult entertainment industry has faced routine discrimination at the
hands of banks, payment processors, and financial institutions. These service
providers simply refuse to service those in the adult industry. In 2014,
JPMorgan Chase closed the bank accounts of several high profile porn stars and
their families without justification . In 2015, Visa and Mastercard stopped
processing payments for advertising on Backpage.com. Paypal is notorious for
closing the accounts of performers and seizing their funds. This
discrimination and censorship has persisted despite the FDIC declaring it
unconstitutional and in violation of the First Amendment.

Making matters worse, middlemen in the adult entertainment industry have
historically extracted exorbitant fees due to a lack of competition in the
space. The popular adult-friendly payment processor CCBill takes a 10.8-14.5%
cut of payments and charges a $1,000 'high-risk’ registration fee annually,
pricing out many potential entrepreneurs. Most adult camsites take between a
30-50% cut of performer earnings, and adult content marketplaces such as
ManyVids take a 40% cut or more.

Blockchains represent a viable alternative to the discrimination and
inefficiencies of legacy financial institutions. Public blockchains are
globally distributed systems of record that provide permissionless access to
anyone with an internet connection. Anyone, regardless of their profession,
can use a public blockchain to store their funds and transact without fear of
having their accounts shut down. Blockchain transactions also have strong
finality guarantees, so the fraudulent chargebacks used as justification for
classifying adult entertainment businesses as ‘high-risk’ are effectively
impossible. Further, blockchains such as Ethereum, which support smart
contracts, can be used to decentralize the business processes of expensive
middlemen and render them obsolete.

~~~
Moodles
Just words that make no sense.

