Topic: Proof of Keys is coming. One exchange is going to fail. Stay safe, take action. - page 2. (Read 333 times)

I don't know about that. Honestly, I haven't used an exchange like that for a while, but when I needed to convert one type of crypto into another type, I used HitBTC. It was like 2 years ago, and I thought it was a reliable exchange. A friend of mine had some tokens and wanted to sell them for BTC. HitBTC was the biggest exchange with these tokens available, and even though it was a pretty big transaction worth around $1k, it was cheap (even though the article's about high withdrawal fees), fast, smooth and with no KYC or anything. But scamming people to pay other people is terrible.

Picking up traction and getting reposted elsewhere: https://www.reddit.com/r/Bitcoin/comments/e9z11e/hitbtc_do_not_respond_to_tickets_frozen_a_huge/

If you're suggesting that it's less damaging to the industry to permit HitBTC to continue to selectively scam (or exchanges to continue to operate insolvenet) because of "FUD" -- you're thinking (generously) short-term, and more accurately, you're missing gaps of context.

If anything, the industry self-policing would instill more confidence.

Stop thinking of price in a one week timeframe. Start thinking 3-5 years.

Another one stupid event. Are you undestand what one big dead exchagne may cause? Another one fud wave and another one drop

as i said the first time they started this "proof of keys" thing, it is the most nonsense social drama ever. the basis of it is good though, when it says "if you don't own the keys, you don't own bitcoin" but the fact that it keeps encouraging people to withdraw from exchanges on a certain date for instance, is pure nonsense and if people were to comply it will actually hurt the market as it would increase the volatility by a lot since it thins the order books and lets the whales manipulate the market so much easier!
for example if people made a withdrawal because of proof of keys nonsense today, we may see price either shoot up to $15k or drop to $5k since it would be easy and cheap to push it in that direction. of course it will come right back to its previous level as all the coins that were withdrawn would be deposited back if not more!

you see, if you are trading then you have no other choice but leave your coins in open orders that you want to be filled on exchanges. and you can't single out one exchange and say this one is scam. they are all horrible. from the biggest and most trusted ones like Coinbase and Binance down to the worst one like Yobit are all the same when it comes to scamming their users. they can do the same exact thing and guess what they have been doing it!

Already we have faced a lot of problematic situation regarding this issue, so we have to make a plan in a proper way for staying safe in this cryptocurrency world, day by day everything in here is getting complicated and risky so this should be removed for the shake of this system for earning more acceptability towards people, I think this cryptocurrency system is not a for a year or a month, I believe cryptocurrency will be the main key of the monetary system in the coming days, so this system should be safe and sound, otherwise, it will be losing its credibility day after day.

I think you should read the blog post: https:/[Suspicious link removed]/ZxJSZ3RuH0?amp=1 -- no offense intended (in fact, it seems you and I see eye-to-eye on some things like banks) but I think you're missing some context.

Proof of Keys is not just an exercise against fractional reserve. In fact, fractional reserve really isn't the most appropriate terminology -- it'd be "solvency." Exchanges, by premise of being a custodial service, are evaluated on solvency. If exchanges were permitted/expected to run on fractional reserve, man, we'd be in a way worse spot with the industry right now, lol. The point is that exchanges shouldn't be on fractional reserve at all (under the model of most centralized exchanges) and if they can't prove that (via solvency) than... it should speak for itself.

You are correct in that it will require a ton of elbow grease. Warning their current customers and preventing future customers is, indeed, a hell of an undertaking; hence the call to arms on this. I agree with you -- Bitcointalk constitutes a slice demographic of HitBTC users, hence why this has been shared on varied platforms --  let alone, as you mentioned, the language barrier, which is why the blog post encourages translation and sharing. Ultimately, the goal is to get this information in front of as many people as possible -- less victims of HitBTC's scheme is a good thing for the industry.

The best case? So many people (existing HitBTC users) withdraw, and so few people (would-be HitBTC users) deposit, that HitBTC is forced into the 'scandal' you describe. This ultimate goal is described in the blog post. So, in reality, we're on the same sheet of music, friend 

The whole Proof of keys thing is just an exercise against fractional reserve. I have no idea what other type of scam you refer to, as i have not been checking the services discussion (or scamming) about that particular exchange. The event itself is general directed at no specific site but to all of them.

From your intention, simply convincing their customers, and their customers alone would do. A sort of boycott. If their customer base doesn't get in panic, even if some of them withdraw slowly, they will have time to shrink (same as banks). Unfortunately i doubt all their customers read Bitcointalk, let alone your message. I bet many don't even speak English. Only a scandal and people unable to withdraw would get their attention, and by then it is too late. That's how all of the earlier failed exchanges went. Not unlike a bankrun...

The point is, every time you make a trade on HitBTC: you take a risk for yourself and finance a fraudulent operation. The article discusses this.

It's not just "suspicion" about HitBTC. The facts are all there. It's not just "bad experiences." It's data. And it's about things bigger than that trade you want to make: the health of our industry.

When you say 'banks have been doing this' what do you mean? Fractional reserve is one thing. Selective scamming ran by an anonymous team pretending to be conducting AML? Very weak analogy. I see the direction you're trying to go here, but it's apples and oranges -- and I'm critical of banks, too.

This year. we can make HitBTC fail. I concur such efforts should not be isolated to Proof of Keys, but how fitting would it be to have that be the time HitBTC is too insolvent to even pretend to function?

I understand that many people are really doubting the viability of the HitBTC exchange and this suspicion has been going around for years now. Though of course, the exchange is still doing good business some are already picturing a bleak future for this platform. Actually, this exchange is not on my priority list as a service provider because of a bad experience before and I do not usually make a lot of trades in there and just do it if there is no other choice (when a certain asset can only be traded in HitBTC). Will this exchange implode in 2020? Let's find out by just waiting.

And yet banks have been doing this for more than a century just fine, and no one cares. As time passes i think the temptation will only increase, and the shadier exchanges/online wallets will do fractional reserve in secret, just like bankers did before it was made legal by their own lobbying in the 19th century.

Last year no site failed because of the event. If anything they can be prepared for it, its kinda useless to tell them in advance. Its like they can simply borrow some money for a few days, not unlike a bank avoids bankruptcy when their central bank loans them the money needed to wait for things to "calm down".

Bitcoin day should be named as such, and sure you can celebrate it among other things by withdrawing all your money from any online wallets in advance, among other rituals you may have. But don't delude yourself thinking that because the site still operates after Jan 3 means its safe. Not in your wallet, means not in your control. You don't (and should not) wait for Jan 3 to find out.

Make sure you participate in the service discussion area for any specific claims against specific sites...

https://twitter.com/Raindropactual/status/1205162036252094470

I challenge the Bitcointalk community to make 2020's Proof of Keys the most impactful one yet. But it will take you reposting the writeup and raising awareness. Protect your fellow cryptocurrency friends from HitBTC's fraud.

This is the longest-running and possibly largest scale fraud that has ever taken place in our industry. This deserves your time, at least to skim through the post and share. Price talk can wait. If you're "in it for the tech" speak with actions, not words.