Crypto

Another Curious Case of Crypto-Jacking

Taylor has somehow become the latest victim of crypto-jacking, in a statement made on their medium post last week on May 22, the team responsible for its development stated that,

“Today we arrived at the office and found out that we’ve been hacked and all of our funds have been stolen. Not only the balance in ETH (2,578.98 ETH), but also the TAY tokens from the Team and Bounty pools.”

Taylor is a cryptocurrency startup currently developing a “smart cryptocurrency trading assistant” that watches major crypto exchanges and performs technical analysis in search of potential profit making opportunities.

The TAY team went on to state that,

We are still investigating, but, as far as we know, the hacker is same person/group that supposedly hacked CypheriumChain (more than 17,000 ETH were stolen). The hacker collected the amount from multiple sources in a single wallet, then transferred it to a bigger one (the same as @CypheriumChain).

After that we noticed an attempt to dump the stolen tokens on IDEX, then we asked the IDEX team to delist TAY until we have a clear vision on the situation. This is why the market is not available at the moment. We also tried to contact someone at EtherDelta but we’ve got no response from them yet at the time of this writing.

This is a huge blow for the founders and team members of Taylor as this might be the punch that knocks them out completely, as the hack has reportedly left them with $25,000 which they say may not be enough to cover running costs for another month.

Fabio Seixas, CEO and Co-founder of Taylor in a post he themed An open letter on Taylor’s current situation has put together a transparent look at the status quo, and despite a very realistic option to put an end to the project, he also hinted some possible ways forward,

1. Stop right now and open all the source code and resources

This option is the simplest but less wanted. We would be wasting all the effort and work developed over the past 12 months. I’m sure this is not what the community and token holders want. Besides that, we, founders and team, don’t want to give up.

2. Stop working full-time on Taylor

We would get another full-time job and work on Taylor in our spare time. It would considerably delay the roadmap, but we would still be working on it.

The bad thing is that we couldn’t guarantee a good level of service for support and maintenance since we would not be dedicated to it. We may also need to ask for donations to help us pay for the infrastructure costs and some freelance services.

3. Get funded by an Angel or VC

Although this is not what we wanted at the current stage, this may be a good option now. We have a good network of angels and VCs here in Brazil, and we may be able to reach some other funds out there — especially the ones focused on cryptocurrency startups. We are willing to pitch them our product, business, and plans; and we believe some of them may be interested in being part of our future.

But this is a long roadway. We may not get a deal for months. Meanwhile, we may not be able to keep building the product.

4. A survival fund token sale

As you know, there are about 2,000,000 unsold tokens from the token sale. Since we will have to issue a new token, we can try to sell, privately or publicly, at least part of these remaining tokens to create a survival fund. Of course, the terms of the sale must be discussed, but since it wouldn’t change the total supply, we don’t think it would negatively affect the token economics.

We already have all the systems and smart contracts done; Therefore it would be technically easy to do it. If we decide to go for a private sale, it would be even easier. This way we will be able to keep running with no interruption.

Taylor could somehow manage to survive this but does it truly have a future?, Who would trust an exchange with a shaky track record?

Re-branding would just mean teaching an old dog new tricks but its still the same dog and people who have been involved before would definitely not be on board for a second ride.