The Biggest Crypto News in 2024: Hacken CEO on Equity Tokenization

Fing is a company who are big Believers In crypto today I sit down with dimma Badan co-founder and CEO at hackin our Mission is to make crypto a safer place An industry leader in blockchain Security with over 6 years of experience Over 1,500 projects audited and trusted By some of the biggest names in the Space this company is about to make History the reason I wanted to have you On today is cuz hackin has a major Announcement one of the first if first In crypto Equity tokenization pioneering Equity tokenization where High holders Become hacking shareholders the equity Of this entity will be tokenized and Those who will accept this basically It's a private placement uh will accept This offer they will become hacking Shareholders this is everything you need To know about hacking equity Tokenization in the far future will you Guys IPO are you thinking about it and What does that mean for those token hole Link down below check it out thank you Hacking for partnering up today so I Could bring this news to our audience as A security expert what is the most Secure blockchain on the market today we Talk about everything so watch today's Whole interview and let's start we got a Chance to meet a little bit in Singapore And obviously hackin is one of the Industry leaders in auditing but before

We get into that can you just go into Your background a little bit Yeah my Personal background is pretty boring so I was 18 years at theoy um like in Different countries mostly doing Financial and it Audits and then I went To work for Ukrainian governments I was Went to defense military Consortium uh To make some Audits and To and To build cyber security Center um but The the the stuff there I didn't like Like was too slow a little bit corrupt And yeah we uh we already had the team And we wanted some energy some speed and In 2017 we merged with some other um um Cyber security firm in Ukraine and we um Made the Ico for bu Bounty platform um It's still alive it's quite popular now Called hacking Proof and for those people that have Never heard of hacking ever what is Hacking hacking is um is a company who Are big Believers in crypto and we our Mission is to make crypto a safer place So we are do not only like security Audits but also we educate people how to Do proper researches and we have Different products that uh prevent from Hacks that make frauders life more Difficult and of course to um to Highlight scamers and basically protect Users from from losing in crypto and Maybe it's just so obvious but like

That's what hacking is why does a Security firm matter in 2024 well come on fur firm matters Because people are relying on us people Because no people don't usually uh have The skills to read the code and don't Have the skills to um you know all time To read the code so they rely on the Opinion of third party auditors Whether this code is secure and whether It it Executes uh what is written on the Website in the PDF white paper so so we Are kind of like a trusted parties in The industry so that's that's I totally Get that for hackin established in 2017 Like you said you decentralized in 2020 Um with the token can you just explain That year over-year growth and sort of The journey you've been through yes sure Uh so yeah we start 2017 we but like we Had the token in 2017 it's just in 2020 We made the swap so in 201 18 we started Like we understood that it's a little Bit too early to BU Bounty um platforms Because obviously bu Bounty is the next Step after you know proper security Audit so we have uh we started to build The service business like basically Doing the pen test and doing the smart Conts and yeah the The um it's been hard to you know like To be a Ukrainian company and to to get The trust you know like there is a

Perception like maybe it changed already But like that's uh in 2018 we build them Uh we decided to focus on cryptocurrency Exchanges and we build the security Ranking of cryptocurrency exchanges and That security ranking has been Integrated um like both with coin market Cap in the way that we Um have influenced the the data that They shown and with coin Gecko and That's uh coin gecko trust score is 20% Is our data and basically we push the Market push the the exchanges to pay Much more attention to the security to Do regular pentest the B bounties like Proof of reserves and uh and that like Kind of created our first you know like Reputation uh buildt our first Reputation block and we started to work With a lot of exchanges and then Obviously like uh after the token swap Like we had the token all the way uh in 2020 we started to get a deep dive into Defi into defi security and yeah like um Like project after project after project We build we um building the reputation And building the skill base and the Revenues that we were getting we were Either like using to um give back some Value to token holders and of course to Build some new products so we had both Helped other companies to launch their Products that was utility for high to Land both we have inhouse products that

We um that we believe is going to be a Big thing in uh in nearest Future how is this bull market different Compared to other markets hacking has Been through look I think this bull Market is really is is is going to be Way more way more bigger because the um The number of l1s l2s is huge the the The the number of capital being like Deployed and the speed of the capital Being deployed right now is like I don't Think it's comparable to 20 like 20 and Special for 2017 and every L1 is like is Going to build a Louch P deck staking Protocols lensing protocols and um and So we already see like we're on the Front line so we see how many uh how big Is decrease of all the request for the Security services and um yeah that um I Think that's this this bull market is Going to be way way bigger than the Previous ones and um yeah I'm I'm very Optimistic you're an industry leader in Security that's undeniable when you Think of security and H uh Security in Crypto you think hacking um and I say That because you've worked with tier one Clients BNB chain near protocol polygon Avalanche can you explain um just the Intricacies of working with those Heavy Hitters Um I mean they like once you get the First clients once you have some um some Good case study like you found some um

Um some great bugs then the development Team didn't find the great Vulnerabilities um then um you you then Then the big clients they exchange this Information and they give you reference And then uh it's like a snow snowball so Like more clients are coming because They know that the the other ones Trusted us and we help them so um of Course it's uh like these big uh uh Protocols they are already be kind of Like Enterprises of crypto they already Have processes and they already have a Lot of requirements um but we are Flexible so we we uh we we learn from Them we adjust our methodology we adjust Our um internal and external processes And like we are right now for example we Are doing the ISO certification for us So like that's to comply with uh you Know like with future requirements Probably right now on crypto that they Still don't have the this uh uh this Thing that everybody should should be ISO compliant but also we're involved in The in like building standards like we I'm personally also writing book I wrote The book recently together with my Partners and that helps to sell to Enterprise Plans as a security expert what is the Most secure blockchain on the market Today oh look ah well for sure it's Bitcoin than ethereum I mean it's

Batttle tested so you canot like well I Mean like yeah for sure but I mean uh There are some really good blockchains That's um that have Potentially um like uh potentially more Scalable and more secure but some time Should pass until like thousands and Maybe hundreds of thousands of Vice Would try to crack it before you can say That they are like more secure than e or Bitcoin and like for and we don't have To get this specific if you don't want But like for a Solana which has Sometimes been shut down it's more Centralized if it's something is more Centralized does that mean it's more Insecure or if it's decentralized is That more secure Oh not necessarily like I mean and there Are a lot of centralization points like In every blockchain so I mean uh uh you Are centralized centralized in the way If you have at least one you you can be Called centralized even if you have one Point of centralization that can be you Know like compromised for example all The l2s that we see on the market right Now that are kind of using in the Decentralization of of ethereum um I Cannot call them um decentralized Because they have sequencers and Sequencers are centralized s like you Can make some uh you know like uh some Hacks or frauds uh within the within

This uh weak points of of the Infrastructure the reason I wanted to Have you on today is because hackin has A a major announcement one of the first If not the first encrypto Equity tokenization can you get into That yeah it's um um it's Um uh being a like a growing company and Especially like a service SL Product Company with revenues uh it's um um and Having at the same time the token uh it Creates certain conflict of interest so Token holders they want I don't know buy Back and burns which means that you Don't have any other good ideas how to Expand the business and we don't want to Do it like of course we're invest like I Don't know like 20 30% into building Some some products some initiatives for Toking holders like getting allocations For them and stuff like that and we we Had a really nice rise in 2021 2022 but the the that the capitalization Of hacking is mostly growing from our Brand from our um from our internal Processes from the products that we Build and from the revenue that we get Like our website is like main Revenue Generating uh Um assets and we receive a lot of Inbounds inbound leads so that's that's That's something and luckily that's uh I Have majority of high and shareholding Like I have 65% so I thought thought it

Would be a really nice idea to uh to Make kind of token Equity swap token Equity merch I don't know what's the Right name to do to name it uh and Especially taking in into account that a Lot of community members are with us From 2017 basically seven years and we Already like you know like family like Brothers and uh I decided to toize 10% Of my uh Equity so I'm like selling it To a special purpose vehicle like send Alone entity and the equity of this uh Entity will be tokenized so the entity That will hold 10% of haken uh it will Be tokenized and uh it will be sold to Hing holders like 100 slots 1 million High each and those who will accept this Basically it's a private placement uh Will accept this offer they will become Hack and shareholders so uh this is Something that uh that I think is very Fair to do and this is something that's Um and I think it's a bold move to uh to Show the industry this experiment how The like I would say successful company In crypto um like a Crypton native Company can merge you uh equity and Tokens without creating any legal risks For high token to be a security token And to have like a lot of problems with SEC or whatever so like you said hack in Successful company and when I say that I Mean profitable company I can become a Shareholder in a profitable profitable

Company um is this just in this is this For existing token holders no no no like I mean exist and you can buy tokens and Like if I hold the token right now if I Hold the token right now yeah yeah you Can yeah sure so anybody it's not just This new batch you said like 10% I mean Like yeah it's anybody but you will have To pass the kyc of course uh at the Moments of the uh like the conversion uh But yeah it's like it's anybody it's a Private placement so I can sell my Equity to anybody like there is an offer And it's just I accept only High tokens That's it and how is this not how is This going to be totally compliant Regulatory wise can you get into that um Right now we don't will not have the Secondary market so the secondary Market What creates certain complexities right Now it's just like I can I have the Right it's just like I'm selling um like Parts of hacking to I don't know to Anybody so it's is it doesn't create any Like consequences can I send sell my uh Equity to anybody in the world sharing In in the company where a major Shareholder is yes I can so it's just Exactly the thing this is super Revolutionary and like this could be Something that you know you set a Precedent and other companies follow um Do you see this as such is the industry Trending this way I I want to you know

Like I want to because like we will like Crypto is an experiment you know it's a Very big experiment and we we love to Like contribute our ideas into to uh our Global movement so yeah it's a part of The that's um um I would say it's it's Also a giveaway because like most of the Tokens like 90% will burn um so it's um Um it's something that's like excites me And it's something that I want to Execute and we we're on this way and Yeah yeah of course I want to follow I Really hate I really hate some of the Companies that were on U on like like Kind of in the same business or like Some similar business in crypto and they Fundraised like with Ico but then they Abandoned token and they are still Successful company but the token costs Nothing and or they completely rebranded The token to some other name and like we Are not they are something different or Something different so I really hate This so Um so we want to show how this can be if You like don't abund the token for me Like Hing is a lifetime Journey so it's Like I'm trying to do what I can what For the best of token Holders your token ha AI hey how do you Pronounce that hey hi hi time like it Comes from there hi is has been the key To the hacking ecosystem can you go into That utility and what's the

Purpose yeah Um so we had different like basically we Started with the payment utility uh to Be honest it was hard because like we Had to choose either we create uh Complexities to our clients and they are Um and they are had to like do a lot of Uh steps that they don't want to do in Order to pay us fees or we or we like Accept the the stable coin so um it Wasn't necessarily but like you get some Discounts if you pay with Hing token but Like most of the utilities were in b2c So in 2021 we were helping other Projects to launch in cyber security Domain so there was the utility that we Uh that we gathered High tokens you had To stay you had to uh keep it so to be Able to participate and there was like Four successful launches then um when The crypto winter started we stopped it And right now like we we are considering Uh a few again like two um three main Utilities for hacking token it's like to Continue help other projects to launch And to create certain Venture arm when We are reviewing projects and Uh like of especially of our uh clients And we like create Community rounds uh For the best ones uh second is that we Are uh going To um have uh certain Insurance pools uh With cooperation with hacking proof our Bu bouncy platform it's all about like

Betting it's like a prediction Market Betting on us that we didn't miss uh any Critical vulnerability and if uh and we Will make sure that there are some good Yields so that people will have a one Month U short time Sten opportunity to Get some stable stable coins if we don't Miss anything if we miss something Critical then the staken pool is going To be used for rewards to BU Hunters so This this is also quite new and exciting Thing that didn't see market and I think It can boost significantly security of Our uh clients and will generate some uh Healthy yield to our token holders and Another one is hes like hacking engineer Day index is my personal favorite one is Uh the smart contract that Allows um our clients our partners uh to Prepay for the audit fees audit Services uh at the same time to get the Exposure like fre risk-free exposure Into high token so imagine uh you are a Crypto fund you have a lot of uh Projects in the pipeline and you want to Book a slot and you come to us you Prepay for let's say 300K USD um uh you get nft that says that you Get this you have the prepaid 300K um For the security services and at the Same time like tokens from treasury Are uh are backing this nft at the price Of the moment of the purchase and after One month period of time if the high

Price goes up you can exchange this nft To high tokens like sell them get the Profit and maybe buy again we pay this 300K so this is an interesting exposure For crypto funds but the most most Important thing here is that the 300K that's the the the the fund have Prepaid 200k is used to immediately buy High tokens from the Deck And remaining 100K like 33% is added to Tokens that were just bought and they Added to liquidity with LP uh remaining High tokens was just burn so by doing That we are a we are increasing U Building up the price for the token we Are increasing liquidity for the token And we are converting our clients our Funds that made this prepayment into Like already Partners who have like door Step in door like foot in the door that Wants our success and that wants to Promote our company so this is uh Something that's uh that excites me and I I uh we just launched and I hope we Can get the first first big funds uh Very soon I love how Innovative hacking Is and everything you mentioned you can Go to the website and this is in your Road map so these things are coming in The future um just for the insurance Pools I had a question on that is that Something like the average retail Investor could take advantage of for

Insurance how would that work yeah yeah Yeah if he believes in us like okay like A lot of people make like people are Making mistakes and it's not possible to Make the guarantee of 100% that's uh um Like Auditors didn't miss any issue but By doing this Insurance Pool we are Basically uh yeah it's it's it's been From people's funds like well like our Auditors wants to participate like our Auditors also want to stake and it's Like first come first serve but it's Like for sure it's going to be Opportunity like everybody can do it um So it's it it boosts like uh it creates The budget for the bug bouncing for the Product and it it's actually um creates You know the the legit way to to Immediately make make money for for Those who like basically predict that we Are good in what we do so yeah it's Something something new in the markets I Didn't see it for the equity Tokenization In in the in the far future will you Guys IPO are you thinking about it and What does that mean for those token hold Yeah yeah yeah for sure for sure so um So U like for like Equity token it Allows you it gives you a little bit More rights uh to than the regular token In terms of the like actual legal you Know like connection to our brand And uh it means that once we for example

Sell some of our product like we we're Building certain products that have Potential of being sold then this money From selling this uh products will be Distributed to to equity shareholders or We get fully acquired yeah that's Understandable or we decide to create The dividend policy again we we are Distributing dividends Uh but the the end goal and it's like my Personal bet that's eventually um like Stock market and token Market will will Merge and um I think um centralized Exchanges will have uh in the beginning They will have uh a hard times of U Trying to be compliant with Regulators In terms of the quality of the assets That are being uh traded at their Exchanges um and there will be a lot of Like you know what is what the tokens Are doing like Uh uh and but then there there will be Clear guidance clear Rule books Especially from like most Innovative Um um free economic zones uh that will Give guidance how to uh trade Equity Tokens and those platforms will start Having uh uh traction and Liquidity and um and like we we we bet That like obviously we for sure want to Be a publicly traded company and we Definitely are going to it is we we set Up the goals um we and we know that it's It's a feasible job and like being going

Public at London Stock Exchange I think Uh I think it's even easier to be honest Than to get listed on some you know Crypto exchanges and not saying that Both is not difficult but at least there You have some clear rule book that if You like if you comply if you do Everything that is accordance to to the Rules then you then you can get listed So yeah it's it's definitely our goal And our targets I have a few more Questions but just is there anything we Didn't mention on equity tokenization Um yeah I mean yeah it's it's more or Less cover it's like it should be very Clear it's a private placement uh and um Yeah it's an invitation to both uh Existing High holders or those who love Our company who love what we do to get Get our share get to become our Shareholders and be closer to us be Closer to us be be Like attend the annual meetings see our Accounts be uh share your ideas that we Can Implement because I don't know like Maybe some you know existing cyber Security companies want to become our Shareholders and we do some kind of Merge or token swap or whatever uh Equity swap it's also an option so yeah Like everybody who likes what we do like We are more than happy to unite Forces Aken is a member of the Enterprise ethereum Alliance could you

Explain uh the benefit or what what that Means oh not only member I'm co-chairman Of the one working group that is writing Def security standards um and um this This is um you know this this work is um Um is the collective effort of most Prominent uh security companies in web3 And not only security companies like an J is involved for example and we are Helping you know like to uh to get in One place all the risks and possible Mitigation plans uh that can um that can Be furly used for regulators and for and For standards issues like I so uh so This is um this is important because You know um like the traditional World Um it doesn't answer crypto because in Most of the cases they don't understand The Risks and for example when I was dealing With some I don't know um Family offices Like having just a conversation private Equity they they are usually saying G Like we want to go and try the D5 we Want to put there some liquidity but we Just don't don't understand risks and Without understanding risk we cannot do It and that's why we we did this effort And that's why um like we also build and Ser that life which U which will be Adapted to the standard so so that Institutions have more information to to Absorb and make their decisions Ander The fire or

Not as a security expert in crypto you Primarily work with business businesses But for average people what's a piece of Advice you would have for those people Speculating in Crypto uh I would advise for sure not to Uh like I I would advise for suing Password managers and I would advise for Sure not to have all the balls in all The x or in one buset so use uh separate Accounts and if you have some like Major like crypto assets that you put I Don't know in a for some nice yields Like never never sign anything with Those accounts like and don't touch them Like just collect some of your fees and Withdraw them and never sign nothing but Like yeah if you like to I don't know D If you like to play around like have Some small accounts where you like Without nfts of course nfts is super Easy to to lose um and uh and yeah play Around but like just don't be just be Sure that the num the the amounts there Are not something that is super painful To lose because like even the best ones Are Losing losing pay losing Attention uh and make mistakes like we Had so so many many examples you know Like Julian from r that news here he Made a confession that he lost his bike And some other nfts because he signed he Was um I don't

Know lost maybe he did a lot of things At the same time I don't know when Crypto do so many things in the same Time during the call like I'm writing Messages doing something else and you Know like you can you can lose attention And made a mistake and it's gone so Yeah de the thank you so much for Joining me I definitely have such a Better understanding of hackin and this Innovation you're going through can you Just give me final thoughts for the Altcoin daily audience and uh links are Down below but how they can stay Involved join the community of course Like we at our community we have U Educational uh program um it's called Trust Army so we are uh we have released Dior certificate uh so it's like um Uh it's 14 modules like in the Gamified manner that you can uh um learn Most of the like uh risky topics where Uh where you can understand better the Projects and uh the the path of this uh Like small this uh Community is that um We are going to start um ranking the Projects we're going to everybody's Going to start reviewing the projects And So based on this ranking we we we Are also planning and we have in our Road map to start cooperating with lunch Pads and so there there will be some um Interesting allocations for your work And this is for sure a good way to uh

Learn and to explore crypto so yeah like Join trust Army join join hiking Community And we're very friendly open and for Sure you will learn new new stuff with Us that's awesome thank you for joining Me thank you thank you for this Time