Hey guys, so I wanted to quickly start by
just saying I apologize for the fact
that this video took so long. Some of you
know from my last stream, that I lost
electricity for I think it’s been four
days now and I finally got it back this morning.
We had a tornado touchdown and
pretty much just destroyed
a lot of the electricity, and trees
were down and stuff like that in the area.
So that’s all resolved now, and I wanted
to do the video as soon as possible.
Last week I did a poll on Twitter
and Hacken won by a landslide.
So today that’s what I’ll be covering.
I will say that I was excited
to do the research on this
project because I haven’t discussed
cybersecurity based platforms yet. And
it’s a nice change from the normal stuff
that I’ve been talking about. Before I
start I like to be fully transparent
about my holdings, and I don’t own any
Hacken. And unfortunately I wouldn’t have
been able to participate in the ICO
anyways because I’m in the United States.
My usual disclaimer, please be aware that
I am NOT a financial adviser and my
videos are not financial or investment
advice. They are for entertainment purposes only.
Please always do your own
research. Alright let’s get into it so
Hacken is a community powered
cybersecurity ecosystem for “white hat hacking”.
or ethical hacking. White hat
hackers are expert, ethical hackers that
specialize in testing and enhancing the
security of an entity’s IT system.
They do this through exposing certain flaws
or vulnerabilities that are inherent
within their system. The core component
of the Hacken ecosystem is called
Hacken Proof. It features a bug bounty
platform which connects ethical hackers
with developers that will require fixing
and enhancement of their system.
In their white paper, they start off by listing
some of the major hacks that we’ve seen
in crypto in this space since it started.
They’re doing this I think probably to
drive the point home as to why there’s a
need for their project. 32 million was
stolen from Parity, 7.4 million was
stolen from Coin Dash, 72 million was stolen
from Bitfinex, 5.1 million was stolen
from BitStamp and 65 million from Mt. Gox.
So it’s pretty stifling when you put
those numbers in a list like that.
Let’s talk about the team
and the project history.
The name Hacken is actually an acronym
for hackers and customers keep ethical
neighborhood. I thought that was pretty
cool because I really wasn’t expecting
the name to mean much more than you
would guess it to mean.
Dmytro Budorin is the CEO and a lead
manager of Hacken. He’s worked for eight
years in various accounting, audit, and
project management positions for Deloitte.
Nikita Knysh is the chief
security officer at Hacken and
he’s actually the CEO of protect master
and that’s one of Ukraine’s oldest and
most reputable cyber security firms.
Nikita is a cyber security adviser to
the administration of a president of Ukraine,
and a co-founder of the Hackit Conference.
There’s quite a few other
people on the team with extensive
backgrounds in cyber security, I don’t
want to list them all or else this video
will end up being extremely long. But if
you’re interested in finding out more I
will link the website down below and you
can find the full list of the team member.
On to their ICO. So their ICO ran from
October 12, 2017 to November 11, 2017.
One HKN or one Hacken was fixed at
1 USD during the token sale.
There were millions of tokens that were being
distributed during the presale and their
main token sale. Of that 5.6 million,
80% were for open sale, 11% went to
the team, 8% went to the advisors,
and 1 % went to the Community Managers.
They had KYC requirements, and the only country
that was not allowed to participate in the
ICO was the US. Which is just typical.
On to their technology!
So. Hacken is an ERC-20 compliant token, meaning
that it currently runs on the Ethereum blockchain.
It has a circulating supply at the
moment of 4.8 million, an eventual
total supply of 5.6 million. Their
project is not an open source project.
Their github is private. They do not have
a specific Hacken wallet, you can just
use any wallet that supports ERC 20
tokens. They do have an active roadmap
which can be found on the Hacken Proof
website. The project would be considered
a “insta-coin”, because the tokens were created
by the token generation event, being the ICO.
Because of the fact that all the
total supply has already been created,
the project cannot be mined. Onto
the features and the platform.
Hacken Proof. So, Hacken Proof is the
decentralized bug bounty program at the
center of the Hacken ecosystem. It
connects businesses with the community
of bug hunters from different
parts of the globe.
Hacken Proof guarantees that various
approaches are applied to identify
possible vulnerabilities and prevent
the threat of attacks ahead of time.
The core of the Hacken Proof platform, is
an ethical cooperation between
cybersecurity professionals and IT
companies who care about security.
They ensure responsible and coordinated
vulnerability disclosures, in order to
encourage white hat hackers to protect
modern businesses.
The tokenized platform means it’s
decentralized and shared among the community.
Having compensation paid in Hackens,
means that the bug hunters are
the main stakeholders of the platform.
Hacken’s price depends directly
on a quality of the provided service,
number of secured clients, and the
overall size of the white hat community.
Members of the hacking community involve
the best hackers, as well as attract new
clients to the platform. Hacken’s services,
so Hacken provides a wide range of
cybersecurity services and solutions
based on each customer’s needs.
Those security services could include
anti-phishing protection, penetration testing,
and smart contract auditing.
Their Hacken conference, so hacking
holds an annual conference called
Hackit. Which brings together about a
hundred experts from different countries.
The conference includes speaking panels
from local international experts, along
with specialized cyber security
competitions where anyone’s free to
participate. Hackit is the largest cyber
security conference in CIS. CIS is the
Commonwealth of Independent States,
also known as the Russian Commonwealth.
Hacken crypto exchange ranks, or CER.
CER provides all-inclusive, 24/7, objective
analysis of crypto exchanges based on a
thorough analysis. Such as broad risk
areas like liquidity, compliance,
reliability, and public opinion. This
product is expected to be released in June.
In their white paper, they state the
rationale for creating the Hacken token
as the interest in value independence
and being the store of value.
So for value independence, Hacken tokens
represent the currency mode within the
Hacken ecosystem. Anyone who requires a
cyber security service within the
ecosystem needs to have the Hacken
tokens. And for store value Hacken,
represents a deflationary currency.
Meaning that supply is decreasing due to
their burning mechanism. This means that
its value would theoretically appreciate
here by increasing the project utility
as a store of value. I just mentioned
they’re burning models so let me go over
that a little bit. They’ll be applying a
burning principle to manage the
volatility and a liquidity of the token.
by reducing the tokens supply,
instead of emitting more.
They believe that burning will
expedite the growth of liquidity and
lessen the volatility risks for Hacken.
The burning process only affects the
platform fees. And reducing the amount of
Hackens that the founders’ of the
platform will own, not the
customers or the clients own.
Every product transaction has a defined recipient
through the Hacken service smart contracts.
When the Ethereum blockchain
confirms a transaction, it’s divided into
three different parts. The first part takes up
70% of the value of the token transferred.
It is immediately delivered to the
wallet of the final recipient.
For instance, researchers that detect
vulnerabilities receive Hackens as a
form of Hacken Proof bounties.
Alternatively, when a company chooses to
purchase Hacken services, whether it be
anti-phishing, or smart contracts,
Hackens from this transaction become the
revenue of the company.
The second part, is a 15% team fee on the
total amount of Hackens. And the last 15% reserved
for the token burn event. These tokens from that transaction will go into the Hacken reserve.
And once the amount of Hackens
in the reserve is equal to 1%
of the supply, or 56,000 Hackens for the
first burn, the team will then announce a
token burn and will alert the community
of when it’s going to happen.
Currently Hacken sits at 410 on Coin Market Cap,
with a market cap value of 17 million.
The current price of the coin is
$3.58 in US dollars. You can purchase
Hacken on KuCoin or on YoBit. As of
right now their Hacken Proof platform
is up and running. This means that
companies can get bug
bounty programs there while white hat
hackers hunt for bounties.
They also have their cyber security services
for block chains, and for companies available.
They have a countdown for their Hackit
conference that is up and running as well.
It is worth mentioning that John
McAfee is an advisor for the project.
While I’m not a huge fan of him in a
social media capacity, I’m sure he’s a
wealth of knowledge as far as
cybersecurity goes, and probably has
awesome business connections for the
Hacken team. Another notable advisor is,
I’m probably gonna mess up this guy’s
name, Olesky Matsevych. And you may not
have heard of him but, he is known for
preventing a major theft of coins during
the the Parity issue with the Propy ICO.
The company had its pre-sale going on
while the Parity attack occurred and
they were worried about that the fact
that they might be at risk. But the company
chose to use Ambisafe multi-sig
wallets instead of a Parity wallets.
Olesky is among the members of a white
hat group, and he also developed the Ambisafe multisig wallets that were used
by the Propy team during the token sale.
Olesky helped the group rescue millions
of dollars worth of funds during the
Parity attack after he found a bug
within four minutes. So what’s coming up
in the future that you can look forward to?
Their Hacken exchange is slated to
be out in Q3 of this year, and their Hacken
marketplace is scheduled for either
Q4 of this year, or Q1 of 2019.
Their crypto exchange ranks, or the
CER website. In which they rank the security of
larger crypto exchanges, is planned to be
up and running by or around July 1st.
On to the pros, they have a very strong team
with a ton of experience in cyber security.
They also have strong incentives
for investors, the combination
of a relatively low capped supply, and
the mechanism of the token burning,
will increase the value of the Hacken for
investors. Additionally this also creates
an incentive for long-term holding. Since
the burning mechanism would kick in
per their burning schedule.
They’re also searching for talent.
Their annual Hackit conference serves
as a great platform for Hacken to identify,
and develop young talent into ethical
hackers. This is also killing two birds
with one stone, because it reinforces
Hacken’s community, and it also
simultaneously strengthens the Hacken ecosystem. Another pro is simply that it’s needed.
This is a huge pro for me because
there’s an actual use case for the project.
Cyber security is a massive issue,
especially in the crypto space and
they can certainly capitalize on that.
Cons, so competition from an ICO
perspective there’s not much competition,
but Quantstamp is definitely the most
similar blockchain based project. However
they’re specifically looking at smart
contract auditing. Quantstamp’s solution
also aims to be fully automated.
Which, unlike Hacken would be crowdsource
auditing services. However Hacken is
really going to compete against non
blockchain vulnerability research companies.
The biggest hurdle I see going
forward is going up against projects
that have a working and established
project and already have a footing in the space.
If Hacken achieves all it’s
set out to do, I believe that will be a
strong competitor. But they still have some
time yet before they are 100% developed.
Final thoughts! So the first major
thing that stuck out to me,
was the ease of finding
information on this project.
Right on their website they have
a PDF section with their white paper,
their two pager, an explanation of how
to add Hacken to My Ethereum Wallet,
and a bunch of other stuff and also still
their token sale FAQ’s.
I cannot begin to tell you how difficult it
can be for me to find information about the ICO,
after the ICO has ended. I end up
spending a ton of time on that part and
it’s actually kind of frustrating
because a lot of time teams will ask,
“well the ICO happened in the past, why
are you talking about that now? Why don’t
you talk about what we’re doing in the
moment?” I’m like well but that’s a huge
portion of what I talk about is the inception
of the project to where it is now.
The ICO is definitely part of that.
But Hacken had that all right there and
it was exceptionally easy to access.
Which I was very grateful for.
Their team was also extremely receptive, very fast
to respond, answered all my questions
without sidestepping any direct
responses. They gave me the impression
that they were very serious about the
project, and I got a very professional
sense from everyone that I spoke to. The
community is active, and very strong as
confirmed by my Twitter poll. Their white
paper was easy to read, and to the point
and left me with very few questions that
I needed answered to begin with.
The white paper is also being updated and
after the ICO some things have changed
to suit their needs a little bit better,
and because of that they want the white
paper to reflect the changes. All in all,
I think the team is very solid, I think
that the community is very friendly, and
I enjoyed researching the project and I
wish them the best of luck in their
future developments. Well that about
wraps it up for me everyone, so I want to
thank you guys for watching as usual
please subscribe if you haven’t done so
and I’ll see you all soon!