Topic: Bitfinex doesn't make you feel Mt Gox 2 is on the way? Or it's just FUD? (Read 309 times)

@mjglqw, As @Rahar02 mentioned, if it came from the exchange, along with the fact that US users cannot take their money out, it could lead to the collapse of the exchange and as a result impacting the Bitcoin price.

But it seems like it will not have the impact as Mt Gox had.

Thanks a lot guys for the replies, it was helpful and informative.

first because people are only talking about this topic and calling it as Mt Gox 2 when price reached the ATH and stopped (slowed down and there was a correction). nobody said a word when price was rising for about a week.

second because the bitcoin of 2013 is not the same as bitcoin of 2017. back then nobody knew about bitcoin except those who were mining it and a small number of traders. now everyone knows about bitcoin. bitcoin has made the first page of biggest financial papers multiple times so far. multiple countries adopted bitcoin. a lot of growth has happened and this all means a big part of this rise is real not fake.

third, back in 2013 market was still very small and that small market was completely centralized in only 1 exchange and that was Mt Gox. no other exchange could even come close to the volume they had. it was more than 80% of the whole market. and the rest was so tiny or were reporting fake volumes to remain relevant. bitfinex in comparison is too small. it has less than 8% of the total volume and only if it is real vol not fake reports. you can not control a market price with that kind of portions!

finally I am not denying there is manipulation present in bitcoin market, but it is not so drastic and big as articles like what you shared are suggesting. it is much smaller than that. and since it is well spread among many exchanges, no one person/entity/group can ever control things on a large scale or for long. we saw this when whales on bitstamp were trying to keep bitcoin price down earlier this year when price was around $1200. we saw how they failed and lost a lot of money because of it. and that is when bitfinex was closed and bitstamp was like the next choice everyone went to.

Yes, an exchange could manipulate their trading orders and bait more people to buy or sell in order to get more profits, I've seen it for a while and then it just disappeared because Spoofers bid or offer with intent to cancel before the orders are filled.
In that case, if happens a lot in an exchange, this is a sign that you should stay away from the exchanges, just come in, do your business and out as fast as possible. Do not risk your money and bitcoin in an exchange which there are a lot of spoofing acts.
Because if spoofy come from traders, I am not so worry but if it comes from the exchange, bad things may happen.

I don't think you're understanding that article completely.

How is Spoofy(whether or not he/she is actually a real person, and not made up just for FUD) a huge trader/price manipulator connected to the hacking of Mt. Gox? Based on the article you linked, Spoofy is said to be an entity or a person that manipulates the price of bitcoin most likely for his/her personal gain. Whereas MtGox was a famous cryptocurrency exchange that filed bankruptcy from 2014–2016 due to a massive security breach. They are not directly related in one way or another whatsoever.

https://hackernoon.com/meet-spoofy-how-a-single-entity-dominates-the-price-of-bitcoin-39c711d28eb4

If not, can you explain why?