10 percent raised money via cryptocurrency is lost by hacks'
Pic source: Reuters Illustration Photo
10 percent to hackers
10 percent of the money that is invested through Initial Coin Offerings (ICOs) ends up in the hands of hackers.
That is what EY (=Ernst&Young) accountancy firm concluded on the basis of its own research, in which 372 ICOs were examined.
For example, via an ICO, startups can collect money by selling digital 'tokens' in exchange for money. These tokens can be used by buyers to use the software or services that the startup develops, and can also be traded.
According to EY, nearly 4 billion dollars have been raised since mid-2015 through this financing methode. But 10 percent of the issued tokens would now end up in the hands of hackers, causing up to 1.5 million dollars per month.
Phishing
In particular, the tokens would be captured through phishing, in which victims inadvertently send their purchased cryptocurrency to the wrong address, or the secret key that gives access to their so-called 'wallet'.
Several websites of financial providers were also copied via cryptocurrency, after which the hackers shared a link to these fake websites via social media and internet forums. Also via hacks at Crypto exchanges, part of the invested money would be lost.
According to EY, in August of last year, cryptocurrencies were stolen for almost 1.4 million dollars through these methods.
On Monday both bitcoin and several other crypto coins declined considerably in value, partly due to rumors that South Korea is preparing a high tax bill for cryptocurrences.
By: NU.nl
correct me if i'm wrong but they can only tax you once you pull out your investment in fiat?
as long as the crypto is in cyberspace its not traceable / taxable?
good question, but that's a misconception (one of the reasons I started looking at crypto seriously haha). Depending on what kind of asset crypto is defined as in your country, you might actually have to be able to prove not only the amount you put in and took out, but also every trade you've done. I don't have my references at hand and would love to give you more info, but the main thing I got from my research is that you can still get taxed. But if you're bringing less than 10k eur/usd into your account at a time you'll be fine (doesn't ring any alarms at the bank).
Other misconception, crypto is actually traceable. Because every transaction is immutably recorded on the blockchain it makes it even more transparent. That said, it is some work to retrieve that data, but easier than with conventional funds. Obviously cryptos like XMR and DASH work differently for that very reason.
Here's a good post by @nanzo-scoop with some good thoughts and cautions about taxes and crypto.
https://steemit.com/cryptocurrency/@nanzo-scoop/vlog-lets-talk-about-the-elephant-in-the-cryptocurrency-room-taxes
Good luck!
Good question. I don't know for sure. Every transaction is secured on the blockchain. And if it's on the blockchain is it than accessible for tax authorities to check?
As long as you don't change it to fiat (I suppose) it isn't a problem. And with the recent developments of crypto credit cards you don't have to change your crypto to Fiat anymore.. But doe it mean it can't be checked by authorities?
South Korea is only the start, greedy, controlling governments cannot allow anything to exist that they don't control or tax.
I'm afraid that the governments and banks will try to do everything to get a grip on the crypto. But it's up to us (the normal people) to make it work
Sneaky Ninja Attack! You have been defended with a 0.70% vote... I was summoned by @futuredigicoin! I have done their bidding and now I will vanish...Whoosh
nice post bro
What can we do to prevent hackers will grab 10%. @andrimahzar
@originalworks