1. Introduction – What you NEED to know first

 

There are a couple of noteworthy elements that I don’t want to postpone to the end, as I believe they will trigger your overall interest in and enthusiasm for this project:

 

  • Hacken (HKN) is still a very unknown very under the radar crypto that hasn’t even entered the top 150 yet. Nevertheless, it is worth your research time as it exhibits several traits of a potential top 50 (or higher) contender. At a market cap of only $15M – $20M today, and a very tight supply of only 4,441M HKN of circulating supply (and 5,6M total supply), this one seems to have a lot of growth potential ahead of it. Especially when you hear our fundamental thoughts on Hacken and its practically unique use case for blockchain technology. So stay tuned.
  • Hacken is trading on KuCoin for the moment, which is a respectable crypto exchange. the small market cap makes it prone to i) typical pump & dump schemes (so you can also profitably trade it while remaining in it for the longer run, by placing some sell orders up front), and ii) making future price appreciation potential strong, especially given that its roadmap is still full with stuff. A.o. because of those reasons, this could easily be a x5 – x10 coin, and even bigger than that.
  • Anti-virus pioneer John McAfee joined this project as an advisor, in return for a 10% stake in the venture. In his role, he brings his own prior business experience(s), his huge cybersecurity specialists network, and he will also assume the role of international business development partner.
  • A specific coin burn-rate mechanism decreases the overall supply continuously, putting a special cap on supply and therefore a push on the token price.
  • Cyber security becomes an ever more hot topic, with countries increasing their investments in it. For example in 2017, the Trump Administration increased the investment amount to $19B, up from $14B in 2016 under the Obama Administration. President Trump, himself actually been subject to cybersecurity controversy, stated that cyber theft is actually the fastest growing type of crime in the US.
  • Rumours of Hacken soon to launch on another big exchange (which would give a huge price boost).
  • While this gem is still flying low under the radar, those who did notice it are very positive about it. Sentiment on social media is extremely bullish.
  • How Hacken turns blockchain technology in such a unique use case is amazing. It actually envisions an ecosystem of ethical “white hat” hackers to let them collaborate with businesses that want to protect themselves from cyber theft. But it doesn’t stop there. It wants to be an incubator for start-ups in the space, and much more.
  • Upon posting this analysis, I was contacted quite rapidly by a representative of Hacken, to adjust some details in the post. This really gave me the impression that they are on top of things and are not letting anything to coincidence. So that’s a plus!

 

2. Market cap

 

  • As mentioned in the introduction, this gem still flies loooow under the radar, with a market cap at $17,8M at the time of writing. 24h volume is less than $1M, making it an interesting coin for pump & dump schemes, which you can use to your advantage by already placing sell orders up front so that you can buy in lower at a later time (provided you would consider this crypto a “long term” holding).
  • The supply is very restricted with only 5,6M coins, and if I’m not mistaken, the total supply was actually 20M at ICO, but there is also a special burn mechanism that reduces the supply over time (see further).
  • Looking at overall price, you can see that we are still close to ICO levels (ICO took place beginning of 2018). Given the increasing attention to Hacken, price is positioned quite well to start rising.

 

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3. Increasing positive social media exposure

 

A random Twitter search gives back the following mood around Hacken (HKN). A couple of screenshots here can say more than any thousands words I could write about that in this section. So consider this an illustrative argument or so to back up the overall “investment” thesis:

                     

                     

                     

 

4. What is Hacken?

 

 

Hacken is an ERC20 token and as such based on the ETH platform so that it can use the underlying Ethereum smart-contracting functionalities. Hacken by itself is a decentralised custom-tailored and community-powered cybersecurity platform and ecosystem aiming to provide and facilitate several types of cybersecurity services. Now that’s a whole mouthful. So let’s have a quick breakdown:

“Decentralised community-powered cybersecurity platform: Hacken’s decentralised nature makes it a perfect use case for blockchain technology. Hacken basically wants to form and feed a global community of white hat (i.e. ethical) hackers as well as Hacken’s own in-house cybersecurity experts, and it actually envisages an ecosystem where for instance companies who need ethical hacker services can join the network, and get said services in return for a payment in HKN, the Hacken token.The decentralised marketplace is called the “Hacken marketplace”.

Custom-tailored: for each customer in specific, a tailored cyber-security penetration testing, etc. offering can be supplied by the wide range of cybersecurity specialists offering their services via the blockchain platform. In that sense, there can be made a match between a developer requiring fixes and enhancements of his system, to an ethical hacker with the relevant expertise.

Ecosystem: Hacken doesn’t “only” want to build a blockchain based platform, it thinks bigger and longere term. It wants to build an entire community and ecosystem around the white hat aspect of cybersecurity by not only connecting businesses and anti-cyber theft specialists, but also by engaging in start-up incubation, organising conferences, finding ways to accommodate for zero-day attack investigations by ethical hackers, and so forth (see further in the post).

Hence, the company’s mission is straightforward: it wants to improve the overall cybersecurity standards across the entire globe.

 

 

5. The constituents of the Hacken ecosystem

 

1) Hackenproof – Tokenized crowdsourced vulnerability rewarding platform

Important note: based on correspondence with the Hacken team (per 25/04/2018), the Hackenproof product is Hacken’s current main product, and it actually includes point 2 (Zero-day) and point 3 (Cybersecurity Analytics).

HackenProof is a bug bounty marketplace platform created by ethical “white hat” hackers and the blockchain community, based on the principle of fair share. The core of this marketplace is the ethical cooperation between IT companies, and cybersecurity professionals. As such, the platform assumes the responsibility for a responsible and coordinated vulnerability disclosure in a way that white hat hackers can actually protect today’s businesses. The purposes of this cooperation are high quality penetration testing and vulnerability reports for a premium fee paid to community members submitting these reports. Working on blockchain technology, the platform interactions are decentralised, work via smart contracting logic, and the utilised token is the “Hacken” or HKN.

hacken crypto HKN

 

2) Unreported Zero- Day Remuneration Platform (actually part of Hackenproof)

Important note: based on correspondence with the Hacken team (per 25/04/2018), Zero-day (point 2), and Cybersecurity Analytics (point 3) are included in Hackenproof (point 1) and should not be mentioned as separate products!

First off, for those who don’t know what zero-day means: zero-day (also known as 0-day) vulnerability is a computer-software vulnerability that is unknown to those who would be interested in mitigating the vulnerability (including the vendor of the target software). Until the vulnerability is mitigated, hackers can exploit it to adversely affect computer programs, data, additional computers or a network. An exploit directed at a zero-day vulnerability is called a zero-day exploit, or zero-day attack (wikipedia).

Hacken aims to support bright technology experts engaging in finding such zero-day attack vulnerabilities, by financially rewarding their original and previously undisclosed zero-day research. Today, while they can actually be very helpful to the companies that are not aware of their own weaknesses, white hat self-initiated zero-day hacking techniques are considered illegal and are prone to criminal prosecution.

Hacken wants to establish ethical and anonymous business processes for talented individuals researching such zero-day vulnerabilities. Part of the ICO-funding is allocated to this second platform / use case. One of the goals is to create a transparent regulatory environment for this fund before it starts operations.

 

3) Cybersecurity Analytics Center (actually part of Hackenproof)

Important note: based on correspondence with the Hacken team (per 25/04/2018), Zero-day (point 2), and Cybersecurity Analytics (point 3) are included in Hackenproof (point 1) and should not be mentioned as separate products!

This third pillar of the Hacken suite entails building a team that will perform fundamental cybersecurity research, as well as monitor and audit existing and upcoming cybersecurity products. More specifically, the areas of research will include:

  • Blockchain security, vulnerabilities and countermeasures;
  • Сlassification, comparison and market research of cybersecurity products;
  • Cryptography, secure communications and data protection;
  • Big data analytics and visualisation in cybersecurity.

The first task of this “team” will be developing an infrastructure and a framework for research & analysis of over 30 different types of cybersecurity products.

 

4) The Hacken Accelerator

Important note: based on correspondence with the Hacken team (per 25/04/2018), The Accelerator is postponed somewhat due to specific law restrictions in their Hacken’s country of residence (Ukrain).

As a fourth pillar in its product / business suite, Hacken will also be engaging in project incubator services and directly invest in promising start-ups by:

  • Co-financing the projects and sharing the risks with investors, investing up to 25% of a startup’s initial capital.
  • The Hacken marketing platform and marketing team will be available to train accelerator participants, jointly develop the market entry strategy and help them successfully execute it.
  • The Hacken Analytics Center will help participants of the acceleration program to research competition, customer segmentation, develop a unique customer value proposition, etc.

 

5) Crypto Exchange Ranking (“CER”)

  • The Crypto Exchange Ranking is a multi-factor scoring model for cryptocurrency exchanges, comprised of 9 factors in totalof which one is cybersecurity. Some of the other factors include liquidity, compliance and reliability, public opinion, technical, and infrastructure (see screenshot below).
  • MVP scheduled for June 1st, 2018.
  • Find out more on the website: https://cryptoexchangeranks.com.

6) Hacken Hub

  • Hacken Hub provides services for blockchain and IT businesses, more specifically related to anti-phishing, smart contract auditing, etc. (hub.hacken.io)

 

7) HackIT conference

  • Each year, a major cybersecurity conference is held in Ukraine. It is the intention to center all cyber security services provided by the community of white hackers, around HackIT.

 

 

 

6. How Hacken (HKN) makes use of blockchain technology

“Proof of Vulnerability Testing” example
  • When clients sign the bug bounty program agreement, the Hacken team creates a relevant blockchain block containing data about the product, the terms of service agreement and a timestamp.
  • The next block of the chain, which is specific to this client, will contain information on vulnerabilities, discovered during Hacken’s security research.
  • After clients resolve the vulnerabilities that were discovered during the bug bounty research, HackenProof experts conduct a post-research audit. They then discuss their findings with the clients and advise any additional measures which need to be taken. Should the findings of the audit be satisfactory to both parties, i.e. the team and the clients, a next block is formed in the chain, which contains information about the issues that were resolved.
  • At the end, clients receive a HackenProof Vulnerabilities and Countermeasures Certificate, containing a report on all the vulnerabilities discovered and resolved with a timestamp for each event. Clients can then adjust their Blockchain sharing preferences and publish the certificate to the public, customers, investors or to whomever they designate.

 

 

7. What’s next? What can you expect to find in PART II?

In part II of this crypto analysis, we will focus on:

  • Is there really a need for another cyber security market place?
  • The team
  • The token burning principle
  • Roadmap
  • Current state of the business (clients, partnerships, etc.)
  • Competitor comparison

 

 

 

8. More interesting material on Hacken!

 

 

Boxmining video on Hacken (HKN)

 

Brief review & introduction to Hacken (HKN)

 

Hacken (HKN) live @Jibrel Network

 

 

Other (Technical) Analysis

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