ExchangeBitcoins.com no longer using Dwolla

jh1523

newbie

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Quote from: Stephen Gornick on July 27, 2011, 09:58:00 PM

Quote from: Mt.Fun on July 27, 2011, 09:54:35 PM

Seems like people aren't considering that these Bitcoin Exchange businesses might not be managed very well since it's a bunch of techies in a room and no accountants or business people. Seems to me like some of these exchanges might just be pulling shenanigans.

Would you like to know what PayPal (Confinity, back then) was like a dozen or so years ago (or why they might have had to sell to eBay a few years later, instead of shutting down? hint: http://news.cnet.com/PayPal-files-for-an-IPO/2100-1017_3-273696.html )

What, did they change at some point? I hadn't noticed. Cheesy

Mt.Fun

member

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Quote from: Stephen Gornick on July 27, 2011, 09:58:00 PM

Quote from: Mt.Fun on July 27, 2011, 09:54:35 PM

Seems like people aren't considering that these Bitcoin Exchange businesses might not be managed very well since it's a bunch of techies in a room and no accountants or business people. Seems to me like some of these exchanges might just be pulling shenanigans.

Would you like to know what PayPal (Confinity, back then) was like a dozen or so years ago (or why they might have had to sell to eBay a few years later, instead of shutting down?)

I would expect it to have been difficult because PayPal pretty much has a monopoly on what they do. If there were no barriers to entry, transferring money online would be a cinch. The government probably has something to do with why all bank transactions are funneled through preapproved intermediaries.

Stephen Gornick

legendary

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Quote from: Mt.Fun on July 27, 2011, 09:54:35 PM

Seems like people aren't considering that these Bitcoin Exchange businesses might not be managed very well since it's a bunch of techies in a room and no accountants or business people. Seems to me like some of these exchanges might just be pulling shenanigans.

Perhaps you would like to know what PayPal (Confinity, back then) was like a dozen or so years ago (or why they might have had to sell to eBay a few years later, instead of shutting down? hint: http://news.cnet.com/PayPal-files-for-an-IPO/2100-1017_3-273696.html )

Mt.Fun

member

Activity: 75

Merit: 10

Seems like people aren't considering that these Bitcoin Exchange businesses might not be managed very well since it's a bunch of techies in a room and no accountants or business people. Seems to me like some of these exchanges might just be pulling shenanigans.

Stephen Gornick

legendary

Activity: 2506

Merit: 1010

Quote from: epetroel on July 27, 2011, 09:38:22 PM

Possible, but if they don't have the funds available to back all their deposits, then that doesn't exactly bode well either.

They also allow withdrawal by check. They have no advance warning as to how much I will be withdrawing nor which method I will use to withdraw.

Though Dwolla is FDIC insured (or NCUA insured, depending on which pass-through account Dwolla has used for the funds) an exchange would probably wish to place customer funds in an interest-bearing insured account.

Because of delays in transfers, cash management can be quite a challenging task. Too bad there is no digital currency that is low-cost, non-repudiable and features fast clearing so that banks and corporations could use to transfer funds. A real pity it is.

epetroel

sr. member

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Possible, but if they don't have the funds available to back all their deposits, then that doesn't exactly bode well either.

Stephen Gornick

legendary

Activity: 2506

Merit: 1010

Quote from: epetroel on July 27, 2011, 07:51:10 PM

but for withdrawls as well.

Quote

Withdraw USD to Dwolla
Withdrawal via Dwolla is currently unavailable. We apologize for the inconvenience and will make an annoucement on our help page and via our newsletter shortly(7/27/2011).

Looks like that change just occurred beginning today.

When the exchange stopped accepting Dwolla deposits that meant every withdrawal would then draw from the exchange's existing balance with Dwolla. Perhaps it would have become too difficult and expensive to try to maintain an adequate balance of funds available at Dwolla to be able to offer Dwolla withdrawals without running empty very often.

drlatino999

sr. member

Activity: 335

Merit: 250

The situation that happened with TradeHill plus the lack of communication as of yesterday on Dwolla's part indicates a large breach of contract, and when transactions of tens of thousands of dollars / euro's / denominations of currency are taking place you want a contract in place with ramifications for the breaching party.

Just sayin.

epetroel

sr. member

Activity: 431

Merit: 251

Didn't see this posted anywhere else, but has anyone else noticed that ExchangeBitcoins.com is no longer accepting Dwolla? And not just for deposits, but for withdrawls as well. I appreciate the solidarity with TradeHill, but withdrawls too?

Topic: ExchangeBitcoins.com no longer using Dwolla (Read 893 times)