I aspire to once in my lifetime deliver a takedown as thorough as this dismantling of a new cryptocurrency from Emin Gün Sirer and Phil Daian:
The quick takeaway is that Bancor can be gamed by miners, and, even if the miners are naive or benevolent, will always trail the real market. It provides no efficiency guarantee during this discovery process, and will likely waste its reserves on market price discovery. You should think twice before you layer a coin on top of Bancor.
Let’s do a quick walk through the red flags we encountered as we read the code and documentation for Bancor tokens, known as BNT.
Followed by 29 distinct issues identified.
I’m not a cryptocurrency nerd, barely understanding how Bitcoin works at the 10,000 foot level. In the interest of fairness and balance, you might want to check out the related Hacker News discussion.