It’s strange how quickly a project can take a 180 degree turn. Crowd Machine was just recently developing a replacement for Amazon Web Services. Today, it’s existence is questionable. Last Saturday, the company’s crypto wallet was hacked. The hacker managed to acquire a large number of the app’s Crowd Machine Compute Tokens (CMCT). To make matters worse, according to Etherscan, the stolen tokens are over 1 billion.
The worst part is, most tokens were instantly transferred to different exchanges. This didn’t go unnoticed and the price quickly fell by a staggering 87% according to CoinMarketCap. The Crowd Machine team quickly responded stating:
“We are doing the best we can to resolve this unfortunate issue as quickly as possible”
Crowd Machine investors lost almost everything
The year in general hasn’t really been good for Crowd Machine. Two very respected Blockstream developers left one of the most prominent startups to join the team. The first one, Ben Gorlick, became a CTO and according to his LinkedIn, he no longer works with Crowd Machine. The other developer, Johnny Diley, who was appointed as chief of the system architecture is as well no longer linked with the company. According to Saeed Al Darmaki, who is a former advisor to the project, he left last month due to not being paid what he was promised.
The company’s goal is to create a globally distributed cloud, kind of like Amazon Web Services. The cloud however, will not be subject to the control of one company or suffer from a single point of failure. The company’s website states that the project is set to be released in the fourth quarter of 2018. Another event that further dragged the company’s reputation down is the pre-sale of CMCT tokens earlier this year. There were a total of 390 planned daily sales, but they have been discontinued with no additional information released. This has of course opened up speculation as it’s always implied by the lack of new information. Many believe that the hacks were supported by an inside man.
Two exchanges were used to dump the tokens: Bittrex and Idex. Idex quickly released a statement on twiiter saying it’s delisting CMCT because of “suspisious activity” The project has indeed had a terrible year and by most accounts, seems to be finished. Unfortunately, this development will be a ripple in the water. Attacks and ICO schemes are on the rise and some heavy measures need to be taken.
- Security Token Offering (STO) Guide: Everything you need to know about STOs - Feb 28, 2019
- Coinbase Pro is adding Ripple (XRP) support for trading - Feb 27, 2019
- Top ICOs of 2018: Initial Coin Offerings that beat the Crypto Bear’s market - Feb 26, 2019
- Ethereum hard forks Constantinople and St. Petersburg scheduled by the end of the week - Feb 25, 2019
- Ethereum founder and CEO, Vitalik Buterin revealed his non-Ether holdings and revenue sources - Feb 22, 2019
Know more than others on any Blockchain Party!
Join more than 5000 others to receive the breaking news and weekly summaries! No ICO spam, we promise.