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achillez

hero member

Activity: 874

Merit: 1000

Quote from: bigvern on December 14, 2013, 11:16:45 PM

We do not operate with fractional reserves. Any exchange that does that will never get licensed. Part of getting licensed is having the financials audited, including customer held funds. I have to assume that any coin can and will have a "bank run" at some point. I'm not a bank and I do not lend coins out, so I have no business in misappropriating coins on deposit. If you want to move all funds out, then they are there to move. They may, however, need to be moved from our offline wallet to the hot wallet first.

Any overwithdrawals caused by a system issue in the past and going forward are covered either by myself or the profits of the exchange itself (if the user is not honorable enough to send them back). These issues are rare and getting rarer.

Paul
BigVern

... and this is why Cryptsy is one of my favorite exchanges.

Slingshot

sr. member

Activity: 616

Merit: 250

Quote from: Speaker on December 15, 2013, 12:15:49 PM

Why the hell is grandcoin gone without warning?

Don't know. Maybe it forked...

Figure it out!

LiteCoinGuy

legendary

Activity: 1148

Merit: 1014

In Satoshi I Trust

be carefull with that kind of exchanges. i never traded there but heard that they had some problems. Fractional reserving is a no go. also try other exchanges (maybe better ones) like www.coins-e.com

Speaker

full member

Activity: 154

Merit: 100

Veronica <333

Why the hell is grandcoin gone without warning?

Slingshot

sr. member

Activity: 616

Merit: 250

Quote from: bigvern on December 14, 2013, 11:16:45 PM

We do not operate with fractional reserves.

Any exchange that does that will never get licensed.

Part of getting licensed is having the financials audited, including customer held funds.

I have to assume that any coin can and will have a "bank run" at some point.

I'm not a bank and I do not lend coins out, so I have no business in misappropriating coins on deposit.

If you want to move all funds out, then they are there to move.

They may, however, need to be moved from our offline wallet to the hot wallet first.

Any over-withdrawals caused by a system issue in the past and going forward are covered either by myself or the profits of the exchange itself (if the user is not honorable enough to send them back). These issues are rare and getting rarer.

Paul
BigVern

Thanks for the reply Paul (BigVern).

Glad to know this straight from the one in charge at Cryptsy (You).

P.S.

An automated Audit was just done on my account four times. Glad to see that was done
but I never requested it, nor ever even filled out any support tickets since around October for
a very minor issue back then.

But it's nice to see that sweeping through my account and verifying every balance is accurate! Nice touch.

IE:

Recent Audits
Requested    Processed    Changes
2013-12-14 18:29:28    2013-12-14 18:29:39    None
2013-12-13 10:48:09    2013-12-13 10:48:15    None
2013-12-13 04:37:29    2013-12-13 04:37:37    None
2013-12-13 03:49:10    2013-12-13 03:49:19    None
2013-12-13 03:46:33    2013-12-13 03:46:40    None

But I sure didn't request any audit.
Surely this is an automated system set of checks.

I am rather certain others will see this in their respective Balances Page soon too.

That's great!

Thanks Paul

Caveat emptor - let the buyer beware!

bigvern

member

Activity: 100

Merit: 10

We do not operate with fractional reserves. Any exchange that does that will never get licensed. Part of getting licensed is having the financials audited, including customer held funds. I have to assume that any coin can and will have a "bank run" at some point. I'm not a bank and I do not lend coins out, so I have no business in misappropriating coins on deposit. If you want to move all funds out, then they are there to move. They may, however, need to be moved from our offline wallet to the hot wallet first.

Any overwithdrawals caused by a system issue in the past and going forward are covered either by myself or the profits of the exchange itself (if the user is not honorable enough to send them back). These issues are rare and getting rarer.

Paul
BigVern

Kane49

member

Activity: 84

Merit: 10

Quote from: ?? on ??

Quote from: kaito on December 14, 2013, 01:24:50 PM

Quote from: bidji29 on December 07, 2013, 02:33:20 PM

Of course they are operating on fractional reserve.

Not because they use the money to finance or to lend, but because they lost a shitton of coin with hack and bugs

Are you kidding me? They rake in enough fees to comensate any losses due to bugs.

While I don't think it's a fraud issue at all, fees would not cover a serious hack as they have stated at their peak, they were at 100 BTC per month.

A hack or spending spree could easily make it a multi month payback at that rate.

~BCX~

Hi, they released new earning figures.
Last week they made 180BTC in Fees

strunberg

sr. member

Activity: 1344

Merit: 335

#SWGT PRE-SALE IS LIVE

Cryptsy needs to add features such as Limit buys and sells.

I authorized a buy of a currency at a certain price,and the website bought the coins at a higher price than what I authorized.
Lost a lot of money.

Reece523

member

Activity: 84

Merit: 10

Cryptsy should double their fees and fix their site. The money would be more than worth it for the peace of mind it would provide...

kaito

full member

Activity: 168

Merit: 100

Quote from: bidji29 on December 07, 2013, 02:33:20 PM

Of course they are operating on fractional reserve.

Not because they use the money to finance or to lend, but because they lost a shitton of coin with hack and bugs

Are you kidding me? They rake in enough fees to comensate any losses due to bugs.

fr4nkthetank

legendary

Activity: 2294

Merit: 1182

Now the money is free, and so the people will be

I have had issues where you get negative coin balances after a trade.

I payed back, sent a ticket (obviously no response yet

). but yeah. I feel sorry a little for cryptsy because other than coinex, its a agood site witha lot of cryptocoins to trade. I feel people bash too much on it, but yeah I wonder how much money they are making.

dont forget they raised (or are still raising) money issuing stocks online to whoever thinks buying unregulated un-everything piece of electronic bits thats tells you will get dividends of some sort at some time.

Bobsurplus

legendary

Activity: 1008

Merit: 1000

Making money since I was in the womb! @emc2whale

I've been able to move coins in and out the last few days too without any issues, I still have a bit of a lag on trades though but its no big deal because for the most part I'm http://www.youtube.com/watch?v=NG1qooBzE2w for the longest time!

Kane49

member

Activity: 84

Merit: 10

Quote from: ?? on ??

Anyone still doubt they are operating off fractional reserves and feigning technical issues? The reason for no real updates is so that it can't be used as evidence. I really wonder if they think the crypto world is this stupid.

Actually the last few days have made me certain that they do not.

Hilux74

legendary

Activity: 912

Merit: 1000

It says right on thr Cryptsy twitter feed that Vern is in Vegas partying it up. When he's done giving two handed zambonis to the hookers I'm sure his full attention will be back.

cryptohunter

legendary

Activity: 2100

Merit: 1167

MY RED TRUST LEFT BY SCUMBAGS - READ MY SIG

put the fees up then and start getting back into the green, i mean with the increased turn over they could make back any losses asap.

however i don't think it is the case. i think their site is just not able to cope any longer.

tiptopgemdotcom

legendary

Activity: 1736

Merit: 1000

Truly decentralized stable asset

Sad, but I am afraid this is the most logical explanation.

Oldminer

legendary

Activity: 1022

Merit: 1001

Quote from: CoinHumper on December 07, 2013, 02:31:02 PM

I was just watching a convo in Cryptsy IRC Support about the possibility of Cryptsy operating off fractional reserves. For those that do not know what fractional reserves are, it's where any financial institution borrows from deposits on hand down to a fraction and then operates on what is remaining. They are gambling that all depositors will not withdraw at once or in masses. Then use deposits on hand to handle the normal flow of business.

Effectively they are getting a free loan from their customers. Cryptsy was prime for such a maneuver. I think this is what is happening. Cryptsy cannot simply shut down and allow customers to withdraw funds, because the funds aren't there. So they keep this charade up by feigning technical issues related to an upgrade while they collect deposit funds to hand out to the oldest and loudest people who are having deposits "disappear".

It all makes sense. It's the only thing that makes sense as the technical bullshit is border lining on stupid. Big Vern needs to PROVE he has coins on hand.

Anyone have any thoughts?

You mean like a bank?

cryptohunter

legendary

Activity: 2100

Merit: 1167

MY RED TRUST LEFT BY SCUMBAGS - READ MY SIG

Quote from: ?? on ??

Cryptsy states that it exceeds 100 BTC monthly fee earnings.

Quote from: https://cryptostocks.com/securities/57

We currently are collecting in fees over 100 BTC per month. We estimate that by bringing Fiat currency to the exchange we will increase our revenue by 10-20 fold almost instantly (within 90 days to allow for licensing). This equates to fee income of 1000 to 2000 BTC per month within 90 days and increasing as more users migrate from other services. At 2000 BTC monthly income, each share would receive 0.004 BTC per month - which would give a full return on investment within 1 year.

We currency have over 13,000 users, and over 3,500 users in the United States. A very large portion of our user base has expressed that we would be their exclusive exchange once we begin offering Fiat currency exchange.

they were turning over 5 million in qrk alone, i doubt they have money worries right now along with their shares they sold.

hypostatization

sr. member

Activity: 350

Merit: 250

I asked for confirmation multiple times today on whether or not they can cover pending withdrawals. I did not receive a response. They are slammed with support work, so that could easily explain the absence of response. I worry about this, however, when considering the hack followed by (unrelated) panic selling and Bitcoin withdrawals.

litecoin_messiah

sr. member

Activity: 356

Merit: 268

Yeah you are probably right, i saw a user mention he deposited 1btc and had 101btc in his account, he then withdrew it to this address

http://blockchain.info/pt/address/13VmZgvanGpsJXnLnT3NWgPdbfPLwR6Rsv

He told me he was joking, after i begged him for 1 btc but i don't believe him, throughout our conversation what he said seemed to be legit.

FYI check this bitcoin topic http://www.reddit.com/r/Bitcoin/comments/1s73f7/i_have_sent_back_the_60_btc_i_was_mistakenly_able/

they sent 60btc to someone by accident, lucky for them the guy sent it back but they probably sent it to more than 1 person.

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