Topic: Bitstamp - hot wallet problem (Read 2332 times)

why not? Bitcoin price is going down = exchangers are making millions from the difference of price.

- let's say you bought 250 BTC with 100K via bank wire. 1 BTC = 400
- you trade for a while and you see the price is going down. what do you think? hey, let's sell and I am recovering a part of my money; and you sell.
- now, you will you see 250 BTC for 70K.   1 BTC = 280 USD

The exchanger will send you the bank wire for 70K but he is sending the transfer from YOUR 100K
Exchanger profit = 30K because he has your 100K (USD/EURO) in his bank account already.

Now, a new "investor" will come thinking "Bitcoin price is down, it's time to buy". The price is raising and then it will fall.
Of course, the big exchangers are "giving" money from the previous HUGE earnings just to attract new fouls with new funds.

This is for a short period of time. They give "some" and they will earn A LOT.

That's why they need visibility/noise in the news. Because with every single news other fouls will come with new funds.

...And that's why the exchangers are having very, very low fees of 0.2% for trading or free for withdrawals. They do not care about these money. The REAL money are made with the Bitcoin price. How can financial company exists with 0.2% per transaction?
There are few BIG exchangers and they give the Bitcoing price. They know the market, they know what funds are coming, the other small exchangers are related with them(all the small exchangers are exchaging with the big ones) .

Now, tell me. Do you really think that there is no manipulation on market? I am not addresing the question to monkeys, hipters  but to people with a human brain

Get real, the exchangers are making millions from the Bitcoing price and not from "trading"

There is no such thing, as bad promotion.

Totally. My weird mind says it's Bitstamp keeping people from selling.
But it's just a drunk brain fart.

Don't you find it interesting that it happend on the same day bitcoin broke through 12 month low?

yes, i got it too, all we can do is wait for the next update whatever it is...

Seems all peeps funds are covered.

http://www.coindesk.com/bitstamp-claims-roughly-19000-btc-lost-hot-wallet-hack/

all the scammers are smiling. why not? they earned a lot of money.
The trust in Bitcoin will sick. All the press agencies will announce another collapse tomorrow or after tomorrow.

Yes, these biggest Bitcoinn exchangers are ran by hipters, kids or people who wants to make money overnight not to built a real company.
Yesterday Mt Gox, today Bitstamp, tomorrow Bitfinex and Coinbase after tomorrow...and so on. Not to mention BTC-e. A big exchanger but nobody knows where it is based...nothing

These people made millions of USD, tens of millions. It's OK for them to close the biz.

You can live your life where you want and how you want when you have millions in your bank account (not in Bitcoin where it can be hacked).

In that youtube video, Mark Karpeles is smiling when he meets the protester. Wish he would of slugged him in the face. I think you're right about the profiling of these kids. They think they are unassailable and don't have to answer to anyone. Including customers.

Seems like more than just exchanges are run by amateurs though. I'm sure you heard of the latest GAW/Paycoin debacle? Not 100% confirmed scam but definitely a very poorly managed company.  It seems the BTC community has become a snarling pit bull though and won't be as easily scammed.

This whole bitstamp fiasco is killing my investments right now, everything keeps going down and down some more.

That reddit post about the 18k bitcoins with huge tx fees doesn't make me feel too good either. Considering my options, I don't want to sell but if bitstamp has this huge loss down goes bitcoin. If not, then well I sold to smarter people who now bought my coins for cheap...sigh. These are the times I hate of crypto where only the insiders know and just holding these coins is the biggest gamble around.

If only there was some sort of...rule or ruleset....that could have ensured they weren't operating by amateur hour standards....hmmm

Because most of these exchangers are ran by amateurs, hipters who thinks about their self that they are GODS.
That's why these things are happening. Look to their behavior. They think that they are a corporation; same as Mtgox or Moolah.

Look here : http://www.liveleak.com/view?i=e63_1404777061  

https://www.youtube.com/watch?v=ob9Ak1t09Ao

This is a common behavior for almost all these "exchangers". They are "busy" people, full of the word's problems.Nobody can understand what  burden they carry but in essence they are some kids who saw a lot of money in their hands.

They are full of vanity....they know better than anyone how the "things" are in the financial industry even they have 25 years old.
They create "scripts" on  knees and saying "it's the best"  even they only tested for 1-2 weeks.

A real software it's tested for months and even so you cannot declare it as safe.
 That's why all the hacks are happening. The greed and vanity will bring down all these so called exchangers.

Unfortunately, their clients will pay the bill.

I agree with you. They are manipulating the market and not only Bitstamp but another 4-5 big exchangers.

Yep, i read that, but i didn't interpret the statement, as covering fiat in the account. I spose it could. We will see very soon, i guess. 

Customer deposits made prior to January 5th, 2015 9:00 UTC are fully covered by Bitstamp’s reserves. Deposits made to newly issued addresses provided after January 5th, 2015 9:00 UTC can be honored.

https://www.bitstamp.net/

Where is that stated?

Don't panic, they are working on restoring the service and said the loss will be covered. I expect them to deal with the problem within 24h.
https://twitter.com/bitstamp

this is insane  . why does this keep happening? I guess history repeats itself

At a minimum, they won't be processing issues or redeems until they're operating again. For the moment, the quantity of BTC assets they've issued on Ripple is locked there with no way to issue more or redeem existing ones. The price may change relative to the value of the underlying Bitcoins because of scarcity, uncertainty about when or whether Bitstamp will honor them, and so on. To some extent, you'll be able to judge confidence in Bitstamp's ability to resume operations by comparing the XRP exchange rate of BTC/Bitstamp compared to BTC/SnapSwap.

If this really happened is bad enough, only proves that the security system is not 100% effective.

I heard about they hacked 18k btc.

BTW its should be in service discussion right.