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Blu: As of now I agree with you. I just speculate on a rosy future.
Thanks AE đ
A lot of work there, thanks for the info.
In mid-April, a number of PEN tokens experienced a breach perpetrated by an attacker, resulting in temporary deposit pauses on the crypto exchange MEXC. Acting swiftly and in close collaboration with MEXC, the Pendulum team effectively averted any significant consequences. The Pendulum team are pleased to report that the stolen PEN tokens have been successfully brought under the control of their rightful owner, and deposits have resumed on MEXC. In this article, we aim to provide transparent insights into the incident, offering a comprehensive breakdown of the events that transpired.
What Happened
A strategic community supporter inadvertently disclosed a wallet seed phrase to a third party, resulting in the breach of their PEN accounts. The attacker, posing as an admin on Telegram, exploited the victimâs trust, ultimately leading to the compromise of their wallet.
The attacker took control of the wallet and began sending unlocked PEN tokens to MEXC for selling purposes. Once the victim realized their wallet had been compromised, they promptly reached out to the Pendulum team for advice and help on mitigation. The team acted swiftly by contacting MEXC who halted deposits, preventing the attacker from further selling PEN tokens and ensuring the protection of the community.
In response to the incident, the Pendulum team advised the victim to stake their entire balance, effectively locking the tokens for a period of at least seven days. The victim was also encouraged to inform local authorities about the breach. This proactive measure was in accordance with Pendulumâs staking pallet, which requires a seven-day unbonding period. It allowed for the necessary time to inform local authorities, work collaboratively towards a solution, and minimize the impact of the incident.
Social Engineering Attack Attempt
The victim was seeking help on the official Telegram channel of a wallet provider. They were then contacted per private message by the attacker, disguising themselves as admin of that channel.
The victim was under the impression they were communicating with an official representative of the wallet project and requested help in staking their PEN. The attacker then directed the victim to a website extracting their private keysâââwhich rendered the walletâs control in the hands of the attacker. PEN tokens were then unstaked from these addresses:
6gDQi9wtrATW28fXMkJodRKLCBW8YipJbKdUhiu8xSnBapJr
6gcrqpLP5nyyWHPbV8jmeEfhhGxADZgRwWkB6pMPAedryYqP
And after the 7-day unbonding period ended, some of the PEN on these addresses was sent to MEXC to be sold, causing a spike in sell volume. The victim, with the help of the Pendulum team, staked their tokens immediately after learning of the breach. The attacker unstaked them again, in an attempt to gain sole access to the assets.
Solution: Deploying Pendulumâs Built-in Governance
To address the security breach effectively, the governance council decided that all essential transactions were to be conducted as public referendums, requiring root privilege. As some of these solutions involved blocking specific blockchain activities, such as token transfers, our priority was to minimize the required execution time. To expedite the process, the referendums were fast-tracked with the invaluable support of the Pendulum technical committee.
The key transaction, which served as the core solution, involved transferring all remaining funds from the compromised accounts to newly created accounts under the sole control of the victim. This transaction ensured the seamless transfer of the original vesting schedules from the old accounts to the new ones. Notably, this pivotal transaction was successfully executed in block 524,496, marking a significant milestone in the resolution process.
This main transaction was more complex as it first needed to ensure that there were no remaining locks on the two compromised accountsâââotherwise the tokens on these accounts could not be moved to new accounts. There are three possible locks that the transaction had to take care of:
vesting lock: the transaction calls a root extrinsic function in our vesting-manager pallet in order to remove the existing vesting schedules
staking locks: the transaction unlocks all remaining locks with our staking pallet
voting locks: the transaction unlocks all locks that are subject to previous votes with the democracy pallet
These unlocks could fail if there are no such locks in place while the transaction was executed. For that reason the transaction was carefully crafted to deal with this situation. The complete transaction is visible and has been submitted as a preimage in block 524,341.
To facilitate instant unlocks and prevent the attacker from manipulating funds before the main transaction, a series of runtime upgrades were proposed by the council via a referendum and fast-tracked by the technical committee. These upgrades involved adjusting configuration parameters and blocking certain actions. Preceding the main transaction, two upgrades were performed, followed by another upgrade to restore the original configuration settings. The code changes for these runtime upgrades together with their execution time are:
runtime ugprade 1, executed in block 523,537
runtime upgrade 2, executed in block 523,989
runtime upgrade 3, executed in block 525,317
Conclusion
It is important to note that this breach was a result of a carefully orchestrated social engineering attack, taking advantage of human vulnerabilities rather than any inherent security flaw in the Pendulum system itself. Pendulum is working properly and without security flaws since inception, benefiting from Polkadot Relay Chainâs shared security. This incident demonstrates how important it is to be aware of the tactics scammers deploy and to properly manage keys.
Thanks to extraordinary efforts by the entire Pendulum team, the remaining PEN are now in the hands of the owner again. The Pendulum team deeply appreciate the patience and support of the Pendulum community throughout this process. We are committed to producing educational content on security and safeguarding PEN tokens in the future.
About Amplitude
Pioneering the internet of fiat. Amplitude is the sister network of Pendulum on Kusama. It will act as a testing ground for Pendulum applications and network parameters and be powered by the AMPE token.
About Pendulum
Building the missing link between fiat and DeFi through a fiat-optimized smart contract blockchain based on Polkadotâs Substrate. Allowing traditional finance fiat services to integrate with DeFi applications such as specialized forex AMMs, lending protocols, or yield farming opportunities. Developed by SatoshiPay.
Keep your eyes on the Pendulum!
@bobsson
do elaborate with your calculations.
i am looking at a maximum of 0.3- 0.5p per share as of NOW, the US would be fascilnating and a NASDAQ listing spectacular, as i have said previously, US would offer a much better rating (PE ratio) and a keener tech following.
thanks in advance
blu
Yes. I make it 1.37p to BLU per share NAV in 18 months time if Dynasty continues its current rate of stellar growth. It is targeting the USA soon. USA can be a graveyard, but if you make it, you make it big.
@bobson
do you mean it will add 1.4p to the NAV of 24p, if so approx 6% .
you can not mean 1.4p to the BLU stock price?
1.4p would mean Dynasty being valued at ÂŁ545m = ÂŁ70m or 1.4p to blu
nothing would please me more , believe me , but seems a little OTT to my mind.
same as you, i'm in BLU for Dtransfer, Dynasty and disruption of FX market.......
i dud not invest in BLU ( ALL those Years ago) for missing timelines, missing target, project delays, poor communication to stakeholders (Dynasty)
i feel sure TF is on top of it and matters progress as we approach valuations / stake sale.
atb
blu
Fair play ragnarr, let's agree to disagree and time will tell when vesting ends. ATB
Agree 100% ragnarr & dukee
PEN now looks on the cusp of a break to the upside, i am sure with the release of xAmber that BLU stock will follow suit, ridiculous to be trading at this discount to NAV?
to my mind, even now, BLU should be at 0.3 , given markets are forward looking and any further annoncements should add to that.
The most likely way for Satoshipay to monetise is via wholly owned Dtransfer. Look at this from the March RNS of the final results:
â Outside of Pendulum and its linked business opportunities, SatoshiPay owns 100% of Dtransfer which was established in 2019 as a cross-border payment solution on blockchain. The directors of SatoshiPay believe the money transfer market is primed for disruption and the launch of Pendulum is an important step in SatoshiPay entering this market. SatoshiPay plan on reinvigorating their efforts with Dtransfer once the Pendulum launch is successfully completed.
The successful incubation of Pendulum followed by 0xAmber.com (formerly: Amber.com) provides the board of SatoshiPay with confidence that they are well positioned to incubate other DeFi applications with a stablecoin, foreign exchange or business focus.â
Dtransfer is perfectly placed for first mover advantage in DeFi.
Hi NtD, I think in 18 months time Dynasty NAV to BLU will be around 1.4p so as you say good value there alone.
Pablo - looking back over the debate I think I probably initiated the âsour tasteâ of the thread which wasn't meant and for which I apologise.
Rather than us just argue over phraseology etc - i think we do agree on the basic facts.
Total PEN tokens 200m
PEN tokens Allocated 160m of which 15.2m are currently available for purchase/trading etc and the rest are currently vested for between 18-36 months (although treasury is 60 months).
After the vesting periods the owners of the tokens are at liberty to sell. And simply put this is where our opinions differ - your view is they will flood the market thereby diluting price while my view is that a majority will remain staked for collators/liquidity/gas fees etc
ATB
Thanks Bobsson,
My original investment thesis and itâs still true today - is in relation the the esports exposure. I am a crypto investor, but I agree with Pablo - satoshi hasnât managed to complete a commercially positive project yet. However there were some changes a while back and stellar influence meant that PEN did happen and it may come good - best chance yet - but itâs still the wildcard to my decision. Esports - now all chips in the dynasty basket more or less but I still think there is good value there and it will reward our patience.
I do have the luxury of quite a low original price but look forward to Dynasty firing this up soon.
Great board in the meantime and thanks to regular knowledge sharing posters - your posts are very much appreciated by me whilst we wait and wait.
AtB
NtD
I am not in BLU for Pen tokens. I am in BLU for decentralised finance fiat/crypto currency transactions commission/turn.
Nelson - I 100% agree, use cases could drive price to a point that could dwarf dilution
But with a track records of developing tech with no demand (micropayments, B2B, Solar Wallet) , there's a risk this is yet another notch on the bedpost of failure, and we'll be relying on speculative market action to move the token price.. which is exactly what we're seeing now.
Dozens of bridges already exist between crypto chains, the USP of pendulum will be DOT to XML chains. Does anyone here have a particular need for that bridge, or know of a specific demand for it?
hobsy1 - please help me be less of a fool and enlighten me with you wisdom , what is the need for such a niche bridge, what are your expectations for usage? what type of daily volume do you expected, and what will be the associated revenue for PEN? Any ideas? or is it just "different this time" because someone told you so?
Thanks Pablo.
Your guidance of blue star shareholder here is welcomed by everyone.
Thanks again for your hard graft and research.
A final throw of the dice to help people navigate the misleading info here. Binance do a handy Glossary which debunks some of the 'alternative' explanations on here...
Total Supply
"Total supply refers to the number of coins or tokens that currently exists and are either in circulation or locked somehow"
Circulating Supply
"The circulating supply refers to the coins that are accessible to the public and should not be confused with the total supply "
For someone to have their personal definition of Circulating Supply, that doesn't include coins released from vesting, is just horribly misleading.
Maybe Raagnar is more knowledgeable with his personal definitions of terminology, but when it comes to actual facts, I'm not the one making a fool of myself lol.
https://academy.binance.com/en/glossary/circulating-supply
Hi Pablo
But we are invested here in Blue star who have an agreed share of the overall tokens - hence we wonât be diluted over long term. What you are describing seems to be launch or growing pains of getting fully the PEN into circulation. Much more key than PEN valuation than the dilution imho is the use cases and adoption of pen - if this hits the right areas dilution will be like worrying about which savings account to put your lottery jackpot winnings in.
So need more use cases Satoshi and Pendulum - come on!
I posted a fact based assesment, evidenced by Pendulums own tokenomics page, which clearly shows tokens will be diluted to 1/7th of the current circulating supply over a very short period.
Ragnaar posted unsubstantiated, misleading and inaccurate cheerleading.
The "soaring" price is susceptible to huge dilution, so tread carefully was my warning. But as always on this board, cheerleading is welcomed over uncomfortable facts .
He's honestly best ignored, most do these days.
Pen certainly looking stronger this week.
Share price here is weak right now which is great for buyers :)
Thanks
Pablo - There is nothing misleading in my comments. i didnt state that that vested tokens are part of the current circulating supply. You are proposing that as soon as vesting periods are completed all tokens will be dumped onto the open market immediately increasing the circulating supply. That is misleading and simply not the case. I have tried to explain why but you clearly have no wish to listen. So lets just agree to disagree. over and out on the subject.
That explanation is horribly misleading. Like I said, do your own research guys. There is absolute nonsense spouted on here.
Tokens due to be released based on a vesting schedule, are absolutely not part of the circulating supply. That is nonsense.
As for the token release not being sudden? The vesting schedule (link below) shows that over 42% of total supply being released between 22-24 months from launch.
Initial supply is 7%. Releasing another 42% from vesting in a 2 month period is absolutely sudden. Holder's tokens will be diluted to 1/7 of the supply.
Please guys, tokenomics are full of irritating buzzwords but the maths is simple. Read for yourselves
https://medium.com/pendulum-chain/pendulum-pen-tokenomics-afa5e5873d9a
Just thought I would add that the last scenario i painted is not on my radar. With the recent announcements re Link, nTokens, Mykobo, Get Paid Africa, Equilibrium at this early stage, as well as the launch of Amber and Spacewalk bridge I believe the future is very bright.
All IMO.