DADI ICO Could be Leaking Investors’ Data

Cryptocurrencies, ICOs, Investors, Law and Regulation, News, Opinion

When I initially checked out the whitepaper for DADI, I was impressed by the list of companies that were already using the platform. The list included:

  • BT – privatized telecom giant in the UK
  • Virgin Limited Edition – part of Sir Richard Branson’s Virgin Group
  • Grazia – Women’s weekly magazine that goes back to 1938
  • Kerrang! – Rock music magazine first published in the early 1980’s

DADI had been developing the platform for four years, unlike many ICOs that seem to have little or no history and appear from nowhere.

What is DADI?

DADI stands for Decentralised Architecture for a Democratic Internet, and they are looking to make significant changes in the world of cloud computing. Their whitepaper claims they will be 90% cheaper than traditional cloud services offered by the likes of Microsoft Azure, Amazon (AWS), and Google Cloud. They feel that the internet is currently controlled by a small number of global businesses, and it’s time for a change. This change, they believe, will be achieved with fog computing via a DAO (Decentralized autonomous organization).

DADI Crowdsale

The public crowdsale followed a successful presale and began 22 Jan. 2018. It was initially scheduled to run for a month but was fully funded well ahead of schedule, and they started issuing their tokens on the 16 February 2018. Exchange listing was expected to begin in Q2 2018, but they beat their target again and were listed by Kucoin and OKEx in early March 2018.

DADI Phishing Emails

ICOs are a favorite haunt of hackers as they know there will be some investors that are just starting out in crypto. This makes them an easy target on Telegram channels promoting the ICO. During the sale, DADI was receiving over a thousand messages per second on Telegram. DADI quickly upgraded their Telegram bot, DADIHelperBot, to counter the spam and cloned admin accounts.

So has everything gone according to plan for DADI?

Their recent security update on the Medium network illustrates an area where they have had problems. It confirms the posts on Reddit of investors receiving unsolicited emails that can have only originated through their participation in the ICO. DADI was originally using a third-party email server, and this was compromised 1 February, 2018. The phishing emails will be much more successful than many that we receive because they include the names investors used to register for the ICO and, at first glance, appear to have been sent by DADI.

For an organization in the crypto sector, this is very worrying and doesn’t bode well for the deployment of their network later on in 2018. Questions have to be asked why an ICO would put their trust in a third-party email server operating on a centralized database. They should know that all their channels of communication will be the target of concerted attacks during the crowdsale and should have scaled up their own servers rather than relying on an external provider.

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Financial analyst, smartphone app designer, technical writer, and crypto enthusiast. Blockchain verified graduate of MOOC 9, DFIN-511: Introduction to Digital Currencies, run by the University of Nicosia.

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