Topic: Bitcoin ponzi Mycoin in China goes bust!~ 500 mil.$ lost. Prepare for a crash! - page 3. (Read 5853 times)

So the btc price hasn't changed since fonzie tries to panic.
Nothing big to deal with is my conclusion. Bye.

EDIT: Thanks for user "hknews" for clearing things up.

"Some one please translate this article in Chinese and hand it to the Hong Kong media please


Today a fake news about "A Hong Kong based exchanger mycoin.hk run off with 3 billion HKD (around 380 million US dollar)" came out in public, however the number of money lost in this news are FAKE!

Remember the $10 dollar fake bitcoins sold at Mtgox's last life cycle? If you took the risk to buy 1000 of them, can you say you lost 1000 * $220 current market price = 220,000 dollars? Well Hong Kong media definitely do so, same thing is happening again with mycoin.hk.Most bitcoins lost at there were bought at less than $20 US dollars!


news link:
http://www.scmp.com/news/hong-kong/article/1707565/investors-fear-hk3b-losses-closure-bitcoin-trading-company
http://money.udn.com/storypage.php?sub_id=5603&art_id=696371
http://cablenews.i-cable.com/webapps/news_video/index.php?news_id=451648
....

These news are ALL USING THE FAKE NUMBER


Most Hong Kong local news reporters don't understand the whole thing or just make up this huge number to create the "big lost" story in the name of bitcoin(new tech + big lost always take eye-balls),

I will show you how this "3 billion Hong Kong dollars" was made out:

Mycoin.hk is the runoff exchanger here (NOT mycoin.com, some media reporters mistaken reporting the exchanger's website domain), This exchanger has a really small market share, even smaller than kraken.com, it used to have around 500 btcs trades per day but about a half year ago it started to delay and stop processing client's withdrawals, since it's too small not many people even know about it, only some of their clients talked about it at months ago.

Mycoin.hk also set the daily bitcoin withdraw limit to 0.5 btc per day(since 3-5 months ago), then 0.1 per day(since about 2-3 months ago), then 0.01 per day(since 1-2 months ago), during this crazy time, bitcoin price traded on their exchange market dropped from market price to $500HKD $200HKD $100HKD $50HKD $20HKD $10HKD.. There are two reasons of this drop: First, the exchanger was trying to attract fiat deposits and stop clients from asking withdrawals like the Mtgox did, almost every Chinese including Hong Kong citizens kept warning/laughing at this old trick, however there are always some people would take the risk and made deposits to buy their "super cheap coins" and hoping may be they can withdraw again someday, Second, the exchanger was trying to pretend everything is fine and their trading activity is still high.

Most people in Mainland China and Hong Kong SAR know about this situation at long long time ago (people talked about this at many Chinese bitcoin forum since the end of 2014), Now today the exchanger finally gone down as everyone's expected.

The interesting thing is now the media journalists sum all the bitcoins in mycoin.hk's clients accounts and get the 3 billions HKD number from:
Amount of fake and super cheap bitcoin * current market price = 3 billions HKD <-- well, this is fake because most of bitcoins there never existed and were "bought" by risk takers and existing desperate clients at a price from $500hkd(60 USD) to $100hkd(16 USD) to $10hkd(1.2 USD) in recent months.

In conclusion, A really small exchanger gone down, less than may be let's say half million HKD(including real bitcoins deposited at there) is lost (because mycoin.hk stop processing withdrawals at long time ago, some real clients must have lost something), "100000000+" or whatever fake bicoins bought at there at a super discount price (99.9% off) are also gone, a so call "3 billions HKD (300 millions USD) lost" was added up by media reporters with a formula "never existed & super cheap fake coins" * current market price = "fake 3 billions HKD"

If you are waiting for those "never existed & super cheap fake coins" dump into the market, not gonna happen,
If you are waiting for Chinese market to panic, give it up, most Chinese know the mycoin.hk exchanger would runoff at a half year ago

That's it, thank you for reading, and please, if someone know or connected to the Hong Kong news  media please ask them to correct this outrageous howler."

seems legit

Can you please take this opportunity to advise how and when ANX has "run away with customer funds"?

Let's clarify a few items:

• ANX launched in June 2013
• Is a registered Hong Kong entity with a Money Services Operator license
• has always relied on complete transparency
• has welcomed thousands of customers to its offices on Hong Kong island
• Is audited by a third party for both fiat and crypto reserves
• has recently acquired Norways largest exchange, Justcoin.com aswell as CoinMKT.com in the US

Mt.gox wasn't a ponzi, it was a pure inside job ripoff, and CEO of mt.gox was a nobody who was in over his abilities,
please note the before he was trading magic the gathering cards..

Anyways, its now clear that this site has nothing to do with bitcoin price, and your title is definetly over exaggerated.
cheers

What a weak attempt trying to justify your false accusations.


BTW: I did write Mtgox which is just another synonym for a ponzi. 

I'm afraid, these investors have never seen a single satoshi, just like most of the stock traders never get their hands on a stock. That exchange has never owned any serious amount of bitcoin otherwise their wallet will be easily identified. But the clients might have lost that much money just like in a casino 

Can you even read, Fonzi? Are you stupid, or a liar?
It was a Ponzi, why isn't that fact in your thread title?

There is a Chinese mycoin thread here that says they were limiting withdrawals in December. Here is the Google translated version.

http://translate.google.co.uk/translate?hl=en&sl=zh-CN&u=https://bitcointalk.org/index.php%3Ftopic%3D887200.0&prev=search

One post there says this

mycoin This platform is now also limiting withdrawals
Bitcoins can withdraw cash at the same time the number refers to sell to buy 50% BTC number, for example: buy 3 BTC, sell a BTC, currently available number of withdrawals 0.5 BTC

I am not sure I 100% believe the facts quoted in the article. I would say it is more likely that the exchange exaggerated the amount of money they were holding on behalf of their customers in order to attract more business.

Are you stupid? Can you even read? Do you think all those articles are made up? Did the bitcoin bearmarket destroy your brain, or are you just another typical bull scammer who is trying to discredit everyone and everything telling the truth?

Lol, why didn't you include a link to the article? Here it is:

http://www.scmp.com/news/hong-kong/article/1707565/investors-fear-hk3b-losses-closure-bitcoin-trading-company

According to it, Mycoin was just another investment ponzi, not a trading platform. Probably they didn't deal with a single satoshi, just used "bitcoin" as a lure (explain potential unrealistic ROI).

Have you ever asked yourself a question how's it possible that 'exchange', that no one heard about, is dealing with 1/6th of total market cap?

HK$3 billion is based on info from Mycoin, so probably the real figure is much smaller.

This tells everything about that 'exchange':

Agreed, OP should be banned for repeatedly trying to spread untrue FUD.

Edit: The English version could simply be picking up on the fake news. Either way Fonzie is a perma-bear with a shady reputation.

a mining contract scam probably isnt gonna crash bitcoin any more than an asic manufacture scam would crash bitcoin .

Agree, no way that its true
Fake spam

We will see in couple days truth.

Once again so called BTC news sites (bull scammers) like coindesk just don´t write anything about it.
But you could expect huge headlines if another hot dog shop in Mexico would accept Bitcoin.

Once again bull scammers tried to betray everyone by denying the truth. Be careful with any advices of these three people above. They are just trying to unload their bags @ higher prices, waiting for the next bigger fool to buy them out, just like dozens of other bull scammers on this board!

Yes I think it was also a ponzi scheme, and not only a normal "exchange". However maybe it is better to wait more news regarding the fact.

So they were a ponzi then. Anyone who "invests" money with the understanding they will get 2.5x the amount of money back in four months is asking to get their money stolen from them

This is a good point. If it had that much bitcoin worth of customer funds then it would likely have sufficient trading volume so that it would be a highly cited/known exchange. To put things in perspective, assuming an exchange rate of $250 (significantly higher then bitcoin is trading at now) then it would mean they ran away with 2 million BTC, gox on the other hand was by far the largest exchange and only had ~800k BTC of customer funds.

Does anyone really believe that an exchange with ~2.5x the amount of deposits as gox is really unknown to most of the bitcoin community?

---

However to be fair, I would not be surprised if we see a number of Chinese exchanges "disappear" with customer funds, although the amount lost will probably not be quite as large. It would also be possible that this exchange really did run away with customer money but the amount stolen is significantly less.

"The HK$3 billion figure is based on an earlier statement by the company that it had 3,000 clients in Hong Kong, each investing an average HK$1 million."

and

"Investors said they were lured by promises of a HK$1 million return in four months for buying a HK$400,000 bitcoin contract which would produce 90 bitcoins on maturity. Extra profits and prizes such as a Mercedes car or cash prizes would be paid if an investor found more new clients."

more at : http://www.scmp.com/news/hong-kong/article/1707565/investors-fear-hk3b-losses-closure-bitcoin-trading-company