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Topic: FBI coins on the move! (Read 6938 times)

sr. member
Activity: 266
Merit: 250
June 17, 2014, 11:08:55 PM
#99
you'd hope they do it slowly..
be kinda retarded to sell 1000000 of them at once...
but who knows who it is... if they can affiird ut they obviously a smart person... considering there probs rich as fark.

The sell off is def going to hurt the price, just them announcing it made price drop.

Yes, it's going to hurt the price.  It's actually probably already priced in, since they announced it publicly.  The fortunate thing for bitcoiners is that they're selling them privately, off an exchange.  So unless whoever buys them decides to turn around and resell them immediately, it probably won't affect the price of bitcoins any more than it already has, which, as far as bitcoin price drops goes, isn't that bad, especially considering that it's already recovered somewhat. 

Granted, JorgeStolfi had an excellent point in his reply to my post that it's likely more than just this one thing at work here.  This is likely part of it, but there are probably several factors at work with the drop in price.
I think over the short term the price of bitcoin will fall a little bit further in anticipation on the sale, and depending on who buys via the auction it may fall after that (if people wish to try to arbitrage the price) but long term the price will recover and rise above where it was as more businesses start to accept bitcoin and more consumers start to use bitcoin
hero member
Activity: 490
Merit: 500
June 16, 2014, 10:59:47 PM
#98
you'd hope they do it slowly..
be kinda retarded to sell 1000000 of them at once...
but who knows who it is... if they can affiird ut they obviously a smart person... considering there probs rich as fark.

The sell off is def going to hurt the price, just them announcing it made price drop.

Yes, it's going to hurt the price.  It's actually probably already priced in, since they announced it publicly.  The fortunate thing for bitcoiners is that they're selling them privately, off an exchange.  So unless whoever buys them decides to turn around and resell them immediately, it probably won't affect the price of bitcoins any more than it already has, which, as far as bitcoin price drops goes, isn't that bad, especially considering that it's already recovered somewhat. 

Granted, JorgeStolfi had an excellent point in his reply to my post that it's likely more than just this one thing at work here.  This is likely part of it, but there are probably several factors at work with the drop in price.
newbie
Activity: 21
Merit: 0
June 16, 2014, 05:31:12 AM
#97
324 = FBI on a keypad. Posturing, or some FBI nerd having a laugh
newbie
Activity: 40
Merit: 0
June 15, 2014, 11:54:55 PM
#96
What law?
sr. member
Activity: 448
Merit: 250
It's Money 2.0| It’s gold for nerds | It's Bitcoin
June 15, 2014, 10:52:50 PM
#95
you'd hope they do it slowly..
be kinda retarded to sell 1000000 of them at once...
but who knows who it is... if they can affiird ut they obviously a smart person... considering there probs rich as fark.

The sell off is def going to hurt the price, just them announcing it made price drop.

The law says that they have to sell them all at once
sr. member
Activity: 266
Merit: 250
June 15, 2014, 11:35:22 AM
#94
The sell off is def going to hurt the price, just them announcing it made price drop.

The price will likely drop in anticipation of the auction, but will rebound (over the long term) due to the massive value of Bitcoin
legendary
Activity: 910
Merit: 1000
★YoBit.Net★ 350+ Coins Exchange & Dice
June 15, 2014, 09:00:50 AM
#93
you'd hope they do it slowly..
be kinda retarded to sell 1000000 of them at once...
but who knows who it is... if they can affiird ut they obviously a smart person... considering there probs rich as fark.

The sell off is def going to hurt the price, just them announcing it made price drop.
sr. member
Activity: 560
Merit: 257
June 15, 2014, 03:30:41 AM
#92
The sell off is def going to hurt the price, just them announcing it made price drop.
legendary
Activity: 910
Merit: 1000
★YoBit.Net★ 350+ Coins Exchange & Dice
June 15, 2014, 03:14:31 AM
#91
Maybe Pirate is buying them back.... you know.. to pay back investors...
lol sorry... to soon Tongue ?
legendary
Activity: 1442
Merit: 1005
June 15, 2014, 02:58:09 AM
#90
Did the FBI move DPR's coins from his address to one under their control? or did they just protect the private key and leave them alone?

They moved them.

Twice.
legendary
Activity: 3472
Merit: 4801
June 15, 2014, 02:11:45 AM
#89
Did the FBI move DPR's coins from his address to one under their control? or did they just protect the private key and leave them alone?

They moved them.
member
Activity: 108
Merit: 10
June 15, 2014, 02:10:47 AM
#88
Did the FBI move DPR's coins from his address to one under their control? or did they just protect the private key and leave them alone?
sr. member
Activity: 448
Merit: 250
It's Money 2.0| It’s gold for nerds | It's Bitcoin
June 14, 2014, 11:23:21 AM
#87
I'm guessing this must be why the price of bitcoin just decided to take a downward spiral.  It's good timing for me, at least if it keeps it up for a while, since I'm planning on buying pretty soon.
Perhaps, or perhaps it was the GHash.io scare.  But I do not find either explanation convincing.


I would argue that since the market can see that there will be a large influx of supply of coins in the near future people are anticipating a future drop in price.

When a large institutional investor is planning on selling their stock in a particular company they do not make an announcement because people would trade ahead of them causing the price of that stock to fall before they sell. 
full member
Activity: 172
Merit: 100
June 14, 2014, 10:30:15 AM
#86
I wonder if any famous people or entities will be bidding for them? Maybe the Winklevii?
legendary
Activity: 1442
Merit: 1005
June 14, 2014, 10:25:21 AM
#85
PS. THIS seems to be a good explanation for the current drop:

CoinDesk, 2014-06-14
Chinese Payments Association Wants Banks to Identify, Eliminate Bitcoin Activity
http://www.coindesk.com/chinese-payments-association-wants-banks-identify-eliminate-bitcoin-activity/
¿Por qué no los tres?
hero member
Activity: 910
Merit: 1003
June 14, 2014, 10:23:41 AM
#84
PS. THIS seems to be a good explanation for the current drop:

CoinDesk, 2014-06-14
Chinese Payments Association Wants Banks to Identify, Eliminate Bitcoin Activity
http://www.coindesk.com/chinese-payments-association-wants-banks-identify-eliminate-bitcoin-activity/
hero member
Activity: 910
Merit: 1003
June 14, 2014, 09:19:09 AM
#83
I'm guessing this must be why the price of bitcoin just decided to take a downward spiral.  It's good timing for me, at least if it keeps it up for a while, since I'm planning on buying pretty soon.
Perhaps, or perhaps it was the GHash.io scare.  But I do not find either explanation convincing.

To understand why the price is falling we would need to understand first why it rose from 450$ (Apr/25--May/20)  to 650$, since this fall is only starting to undo that rise.  That explanation had better explain also why the price rose in a few discrete jumps, due to large concentrated buys, rather than in a steady ramp with broad market support.  Pseudo-explanations like "bitcoin is like that" or TA astrology will not help of course.

As far as I can tell, the rise (like almost all the major moves since October) was generated and powered by the Chinese market, and copied to the "West" by arbitrage.  The spurts could be explained by a few big traders getting inside information of some imminent development with expected positive impact on the Chinese market, such as opening of offshore branches of Huobi and OKCoin, trading in offshore yuan (CNH).

If that is the case, the cause for the current drop should be sought in China too.  Neither the FBI auction nor GHash.io thing could have much impact there.

Anyone who was minimally familiar with how the US government deals with seized property, and had some feeling for the way civil servants think, would have guessed that the sale of the SilkRoad coins would happen, and could tell exactly how it would happen: by public auction, in lots, to the highest bidder, at whatever price he offered.  And indeed several people predicted that in this forum.  There was absolutely no chance that the FBI would sell the seized coins through private deals or on the exchanges, or would try to keep them.  (The US government has no more motivation to own bitcoins than it has to own Apple stock or gold-plated Rolls Royces.) So, their sale must have been "priced in" for months.  Moreover, the amount is not large compared to other bitcoin hoards that could be dumped (it is less than 8 days worth of the miners'  output). 

The GHash.io thing is an obscure technical issue that, per se, does not threaten bitcoin immediately.  (It is far less worrisome, IMHO, than the recent developments at the Shrem Karpeles & Friends Foundation, also known as the Bitcoin Foundation; or than restrictive regulations that large nations might easily pass; or than several other threats.)  I cannot imagine the Chinese traders being impressed by it.

My best guess is that some of those same Chinese insiders who caused the recent rise just got tired of waiting for the expected event, or started doubting the news.  Or other Chinese whales became pessimistic about the solidity of the rise, and decided to dump.

hero member
Activity: 490
Merit: 500
June 13, 2014, 11:48:50 PM
#82
I'm guessing this must be why the price of bitcoin just decided to take a downward spiral.  It's good timing for me, at least if it keeps it up for a while, since I'm planning on buying pretty soon.
sr. member
Activity: 448
Merit: 250
It's Money 2.0| It’s gold for nerds | It's Bitcoin
June 13, 2014, 09:00:41 PM
#81
I just want to know will they announce how many bidder before the auction??

They will let the winners of the auction know that they won on the 30th (3 days after the auction closes). The prices will likely be disclosed at this time as well.
legendary
Activity: 2646
Merit: 1137
All paid signature campaigns should be banned.
June 13, 2014, 08:23:12 AM
#80
The FBI is moving the coins and selling them in 3000 BTC Blocks
So if you have 200,000 and a wire transfer lying around feel free to buy some XD
http://gigaom.com/2014/06/12/us-will-auction-bitcoins-seized-from-silk-road-bidders-must-deposit-200000/

200,000 is only the deposit that allows you to participate in the auction.

After that you'll need to wire the rest of your winning bid within 23 hours of the end of the auction or you forfeit your entire deposit.

Na they said it was a refundable deposit
Then again it is the FBI so you would need to assume that they would honor that although If you win the bid it might be different.

Did you even read the U.S. Marshals Service announcement?
http://www.usmarshals.gov/assets/2014/bitcoins/

Quote
On Monday, June 30, 2014, by 5:00 PM EDT, the USMS will notify the winning bidder/bidders that their bid/bids has/have been selected. Any winning bidder must send the purchase price funds (less the $200,000 deposit amount) by a wire transfer originating from a bank located within the United States and provide a wire transmittal receipt to the USMS by 5:00 PM EDT, Tuesday, July 01, 2014.

Receipt of Funds. The winning bidder should be prepared to wire purchase funds to the USMS by 5:00 PM EDT on Tuesday, July 01, 2014. If the winning bidder does not provide the USMS with a copy of the wire transmittal receipt by this date, the bidder will be disqualified and another winning bidder will be selected. FAILURE TO INITIATE A WIRE TRANSFER AND PROVIDE THE USMS WITH A COPY OF THE WIRE TRANSMITTAL RECEIPT BY TUESDAY, JULY 01, 2014, AT 5:00 PM EDT WILL RESULT IN FORFEITURE OF THE BIDDER’S DEPOSIT.
But reading a two page document is so very hard.  Besides it is so much more fun to just make up crap.  If I actually read it I would not be able to do that.
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