Classic ponzi, with a classic ponzi closing statement. I doubt anyone who hasn't already pulled their money out will get much, if anything, back. As for the effect, I expect some panic from people being upset about being scammed, and the overall negative view of this whole thing by everyone else, but I don't think it will affect the overall economy/price much.
BTW, this exact same thing happened on SecondLife with a Ginko Bank investment thing, too. Same deal with return rates, closing statement about money locked up in other assets, and eventually, after many excuses, complete collapse/closing of the "bank."
Topic: Bitcoin Savings & Trust closing! Effect on market? - page 4. (Read 15730 times)
This is pretty clever. He sets up a seemingly obvious scam which probably very few people sends money to, takes huge bets that it will default, and then closes the fund and wins the bets.
The 5000BTC bet is tiny compared to the coins he took in (500,000+) and interest he paid out (tens of thousands of BTC/week) Assuming he does pay everything back ...
..
All indicators are for downward movement, by my reconing.
..
All indicators are for downward movement, by my reconing.
Unless your initial assumption is wrong. In that case, people will own 100Ks of BTC less than they thought.
yes, that would be the brutal thing. Leverage all your fiat to buy high yielding BTC......aaaaaand it's gone. That would remove a lot of buyers from ever coming back.
Like they always say, "Don't invest more than you are prepared to lose"
I have no direct exsposure to Pirate, anybody else clean of this mess with me?
Me as well. I would have loved to have rode the gravy train if it ends up paying out......but 7% just seemed too fishy.
Never went near it. Learned my (bitter) lessons years ago when e-gold was king.
Wow....press release 2 days ago on PPT's.....
Bitlane complains about withdraw.....
Pirate shits his pants....
Ponzi revealed.......well we will find out soon enough for sure now won't we.....
As I have said....mark my works "someone will get burned in all of these PPTs"
Bitlane complains about withdraw.....
Pirate shits his pants....
Ponzi revealed.......well we will find out soon enough for sure now won't we.....
As I have said....mark my works "someone will get burned in all of these PPTs"
So many people are going to start buying soon. This is an insane buying opportunity.
The price went to $15 because of real demand. You can see it in the charts-- we've had quite a few record volume days. This too shall pass.
The price went to $15 because of real demand. You can see it in the charts-- we've had quite a few record volume days. This too shall pass.
I honestly don't know. I for one am neither buying nor selling until the whole BS&T ordeal has played out.
I thought we'd get a bigger bubble. Actually we might see that yet.
I thought we'd get a bigger bubble. Actually we might see that yet.
the market is gonna crash as lot of people who took loans and filled the pirate fund would be selling out.....
took loans and filled the pirate fund ??
*facepalm*
The market will crash a bit (already is), but it'll rebound again too. And I'll be buying in the meantime. 
Am on board....buy , BUYYYYYYYYYY ..............
We are going back to the single digits baby!
The market will crash a bit (already is), but it'll rebound again too. And I'll be buying in the meantime.
Am on board....buy , BUYYYYYYYYYY ..............
This is pretty clever. He sets up a seemingly obvious scam which probably very few people sends money to, takes huge bets that it will default, and then closes the fund and wins the bets.
The market will crash a bit (already is), but it'll rebound again too. And I'll be buying in the meantime.
the market is gonna crash as lot of people who took loans and filled the pirate fund would be selling out.....
Pirate knows his announcement is going to drop the price drastically... and his assets are in fiat. Drop the market, buy it back as people freak out, refund on Monday with the BTC you purchased... profit.
As long as he can manage to pay everyone back, then that's fine with me. I hope we are all laughing about this in a few weeks, and the market returns back to something resembling stability.
Pirate knows his announcement is going to drop the price drastically... and his assets are in fiat. Drop the market, buy it back as people freak out, refund on Monday with the BTC you purchased... profit.
he is only half as clever as he thinks he is.
i predict some people are not getting their money back. he messed up in some fashion.
So he lost 5000 bet?
Who's "he", just curious?
The shut-down is not surprising, as there are signs of withdrawals but few signs of deposits.
At the end of the month, you will know who won.
BTW, from timing comparisons, this crash would've happened shortly anyway. BS&T should only have been a minor factor.
Pirate knows his announcement is going to drop the price drastically... and his assets are in fiat. Drop the market, buy it back as people freak out, refund on Monday with the BTC you purchased... profit.
I have thought this through 100x times.......and it is almost perfect. We will see.
It depends a lot on whether or not he defaults. If its an orderly closing and everyone gets their moolah back, there might be a correction because of some profit taking. If instead he defaults and absconds with the moolah, BTCUSD should go up a bit as some percentage of the victims try to cover the lost BTC.
+1
Pirate knows his announcement is going to drop the price drastically... and his assets are in fiat. Drop the market, buy it back as people freak out, refund on Monday with the BTC you purchased... profit.
Assuming he does pay everything back ...
..
All indicators are for downward movement, by my reconing.
..
All indicators are for downward movement, by my reconing.
Unless your initial assumption is wrong. In that case, people will own 100Ks of BTC less than they thought.
yes, that would be the brutal thing. Leverage all your fiat to buy high yielding BTC......aaaaaand it's gone. That would remove a lot of buyers from ever coming back.
Like they always say, "Don't invest more than you are prepared to lose"
I have no direct exsposure to Pirate, anybody else clean of this mess with me?
Me as well. I would have loved to have rode the gravy train if it ends up paying out......but 7% just seemed too fishy.
Jump to: