Yet Another Bitcoin Bank Goes Bust

Yet Another Bitcoin Bank Goes Bust

Cloud News Round Up March 5th


Canadian Bitcoin Bank ‘Flexcoin’ Shuts Down After $600,000 Theft – The digital storage of things doesn’t just offer problems for data, as cloud-based cryto-currencies (a peer-to-peer digital currency that relies on cryptography) can also be built on shaky ground without the right security measures. As Bitcoin, a crypto-currency, is based in the ether and isn’t a physical form of money, it can be stolen or hacked away, just as it was recently with Canadian Bitcoin bank, Flexcoin, who have seen $600,000 worth of Bitcoins stolen. All of the coins in Flexcoin’s ‘hot wallet’ (funds that are connected to the Internet) were taken and as Flexcoin say that they do not “have the resources, assets, or otherwise to come back from this loss”, the bank will be closing down, raising further questions about Bitcoin’s future and the security it offers its users.

Security Firm Elastica Announces Funding – A key problem with embracing SaaS technology, particularly in this era of BYOD (Bring Your Own Device) is that there are an incredible amount of security risks posed by large amounts of employees having access to company data. This is a problem that Elastica would like to solve, with the SaaS security firm being in stealth mode for quite a while as they worked on their offering. However, they are now out in the public and have now announced funding, with the company securing $6.3 million in venture funding from Mayfield Fund. Rehan Jalil, the President and Chief Executive Officer of Elastica explains that “[They] are focused on enabling the elastic enterprise , where companies can achieve business agility, collaborative capability and cost efficiencies to effectively compete in today’s market,” which Elastica help with “by harnessing advanced data science and machine learning”.

Opower Files for $100 Million IPO – Utility SaaS provider Opower provides customer engagement solutions for the utility industry, working since its founding in 2007 to do so. Cloud technology is big business and big business means that there’s plenty of money to be both invested and raised and having made $89 million in sales for the fiscal year that ended December 31, 2013, it perhaps signals exactly why Opower have now made a filing with the SEC (Securities and Exchange Commission) to raise up to $100 million in an IPO (initial public offering). There’s no word on when shares will become available to buy but it has been revealed that Opower plans to list on the NYSE (New York Stock Exchange) under the symbol ‘OPWR’.

By Jennifer Livingstone

(Image Source: Shutterstock)

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One Response to Yet Another Bitcoin Bank Goes Bust

  1. It’s very important for anyone dealing with cryptocurrency to hold their own private keys. It is always a security risk to store large amounts in another person or business’s control.

    If you’re trading, only keep a fraction of your holdings in the exchange. Even better for security is to trade peer to peer. The whole underlying concept of crypto is the core principle of decentraliztion and the first effective, workinng, TRUSTLESS economy.

    The best ways to store your own private keys are paper wallets and/or cold (offline) storage. You can print out a private/public key and have it never touch the internet, therefore never accessible to anyone who does not have physical access to the paper. Or you can create a private/public key file using a computer that is offline and send the Bitcoin to that address. Put that file on a USB flash drive and nobody can ever touch it without physical access to the device.
    The most hardcore option is to create a brain wallet (same concept as a paper wallet). One that only exists in your memory.

    Your control, your keys = your money. Not your control, not your keys = not your money.

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