bter hacked and lost 50m nxt

[luckybit]

If we own NXT on Bitshares then it's worth a certain amount in XTS which then gets accepted in exchange for NXT via some sort of API level connection to Counterparty or Vennd. Someone redeems the IOU and then the BTSX are represented on Counterparty as an IOU which gets sold for NXT and transferred to the owner on the Bitshares chain. On the Bitshares X chain you would lock it to your NXT address and the market asset NXT would allow us to trade on the Bitshares X exchange.

This is important because we need the ability to hedge on the success of Bitshares X by buying NXT when people panic sell it.

What's the end game here? Trade NXT without a centralized exchange?

We should be able to trade NXT from within Bitshares and then we could have an arbitrage opportunity or judge hedge ourselves in case Bitshares has problems. If you own Bitshares even if you think it will be #1 it still makes sense to reserve a few percent of your portfolio for NXT.

[mint chocolate chip]

Am I understanding this right, bter and the hacker made a deal, bter sent them 100 bitcoins and the hacker was supposed to then be honest and give back all the nxt?

[Riverhead]

https://nxtblocks.info/#section/blockexplorer_messages

street justice

I can't read the Kanji messages but I do see one threat in English. I can't imagine there's any way to find this person though.

[CLains]

https://nxtblocks.info/#section/blockexplorer_messages

street justice

[Riverhead]

The one thing I'd like to know is why did BTER keep 50m NxT in a hot wallet? surely NxT can be kept in a cold wallet? is this something special about NxT? or is BTER keeping everything they have in a hot wallet?

ok, I found this:
https://bter.com/article/968

so looks like NxT was not on the list of coins that are being kept in a cold wallet, the only thing I don't understand is ... why?

Maybe something to do with forging? I don't know.

[kokojie]

The one thing I'd like to know is why did BTER keep 50m NxT in a hot wallet? surely NxT can be kept in a cold wallet? is this something special about NxT? or is BTER keeping everything they have in a hot wallet?

ok, I found this:
https://bter.com/article/968

so looks like NxT was not on the list of coins that are being kept in a cold wallet, the only thing I don't understand is ... why?

[kokojie]

The one thing I'd like to know is why did BTER keep 50m NxT in a hot wallet? surely NxT can be kept in a cold wallet? is this something special about NxT? or is BTER keeping everything they have in a hot wallet?

[Riverhead]

If we own NXT on Bitshares then it's worth a certain amount in XTS which then gets accepted in exchange for NXT via some sort of API level connection to Counterparty or Vennd. Someone redeems the IOU and then the BTSX are represented on Counterparty as an IOU which gets sold for NXT and transferred to the owner on the Bitshares chain. On the Bitshares X chain you would lock it to your NXT address and the market asset NXT would allow us to trade on the Bitshares X exchange.

This is important because we need the ability to hedge on the success of Bitshares X by buying NXT when people panic sell it.

What's the end game here? Trade NXT without a centralized exchange?

[Riverhead]

Perhaps. I personally would have been dumping NXT for more BTSX and I would have expected others holding NXT to do the same. But yes perhaps the implications are bigger.

Agreed but you're not exactly the uninitiated fence sitter :).

[Empirical1]

Very good for BTSX obv.

Cannot disagree more!

Ya, large thefts are bad PR. The people sitting on the fence or the sidelines don't distinguish the details of which product or how it was taken. They just read, "$1.7M USD worth of BTC like money stolen".

Perhaps. I personally would have been dumping NXT for more BTSX and I would have expected others holding NXT to do the same. But yes perhaps the implications are bigger.

[luckybit]

This is worth a read and maybe following. It's the NXT thread on to rollback or not to rollback. Not for the feint of heart. I also agree with CLains: this is no way to win. Really it could have just as easily been BTSX.

https://nxtforum.org/news-and-announcements/roll-back-bter-hack-of-50m-nxt/?all

Why turn NXT into an IOU on Bitshares X? Not disagreeing just not sure what it means.

I'd like to purchase NXT through Bitshares X and potentially hold them through Bitshares X.
I don't think it would be too hard to implement if we can find the source code to Vennd.io or if Bytemaster or someone can come up with an algorithm to show us how to do it.

I don't know how to do it in a way which isn't centralized but perhaps one way would be to connect to Counterparty and do it through Counterparty. I really would prefer if it could be done through Bitshares X though so that Bitshares X can actually make use of it's ability to issue assets.

If we own NXT on Bitshares then it's worth a certain amount in XTS which then gets accepted in exchange for NXT via some sort of API level connection to Counterparty or Vennd. Someone redeems the IOU and then the BTSX are represented on Counterparty as an IOU which gets sold for NXT and transferred to the owner on the Bitshares chain. On the Bitshares X chain you would lock it to your NXT address and the market asset NXT would allow us to trade on the Bitshares X exchange.

This is important because we need the ability to hedge on the success of Bitshares X by buying NXT when people panic sell it.

[Riverhead]

This is worth a read and maybe following. It's the NXT thread on to rollback or not to rollback. Not for the feint of heart. I also agree with CLains: this is no way to win. Really it could have just as easily been BTSX.

https://nxtforum.org/news-and-announcements/roll-back-bter-hack-of-50m-nxt/?all

Why turn NXT into an IOU on Bitshares X? Not disagreeing just not sure what it means.

[luckybit]

This is a huge amount. I feel sorry for them.
https://bitcointalk.org/index.php?topic=740147.0

Fortunately I didn't list anything but goddamnit.
This is not good for the industry as a whole even if we can benefit from it.

Is there a way to turn Nxt into an IOU on Bitshares X utilizing something similar to Vennd.io?
I think we should duplication the functionality of Vennd.io ASAP.

http://www.vennd.io/

Can anyone find the source code?

I feel really bad for Bter, it is my favorite exchange atm.

Terrible news for NXT as well. No fun winning like this :(

This isn't winning. We aren't in a competition with NXT the community. We are in a competition only with NXT the technology. All communities lose when this happens as evidenced by MtGox spoiling the whole ecosystem.

[CLains]

I feel really bad for Bter, it is my favorite exchange atm.

Terrible news for NXT as well. No fun winning like this :(

[lucky331]

the question is, can you even withdraw BTSX from BTER?  i have been waiting for like an hour now.