Agree that it is difficult...
and there is one important overall question:
Is the fact that the BTC market was unregulated equaling that the exchange owner can just do anything?
I guess many people buying bitcoins at MtGox were - rightly or wrongly - assuming that standard exchange practices were followed. Shouldn't now standard exchange principles apply?
The fact that bitcoin is unregulated does not automatically mean that an owner can just ignore standard existing practices of exchanges (and that's what it is).
Does someone have some standard knowledge of how normal exchanges would need to treat the issue that happend today on bitcoins?
Including placing bid / asks order again where they were or not?
Topic: URGENT: What is next and legitimate on MtGox after the security issue? - page 4. (Read 7839 times)
June 19, 2011, 04:48:06 PM
June 19, 2011, 04:45:59 PM
Quote
What's your suggestion?
SELL
That's mine.
Don't sell, bitcoin wasn't compromised.SELL
That's mine.
But bitcoin doesn't have to suffer from Mt Gox problems.
I've heared only good things of Trade Hill.
It's great time to close your Mt Gox account and move somewhere else to make it clear that such a poor-secured service is not acceptable.
June 19, 2011, 04:44:30 PM
Orders should not be reversed. That's just MtGox trying to cover his rear. What SHOULD happen is all trades should be processed as normal, and MtGox should refund the guy who was hacked. It was MtGox's fault, so they need to step up and fix it. Fixing it does not mean reversing all trades. Fixing it means restoring what was stolen due to their incompetence.
June 19, 2011, 04:44:04 PM
And we had to learn the hard way.
I would say drop ALL outstanding orders (buy and sell), no rolling back (just not possible) and let MtGox handle things with the person whose account caused this trouble (instead of handling things with 60000 people).
MtGox earned a lot from trading with last 6 months (the 0.65% fee), they should be able to cover most of the costs. Having roll backs would cause law suits, which might even cost more.
I would say drop ALL outstanding orders (buy and sell), no rolling back (just not possible) and let MtGox handle things with the person whose account caused this trouble (instead of handling things with 60000 people).
MtGox earned a lot from trading with last 6 months (the 0.65% fee), they should be able to cover most of the costs. Having roll backs would cause law suits, which might even cost more.
June 19, 2011, 04:41:30 PM
1) Is it legitimate to rollback trades or should the exchange cover the risks?
Yes, legitimate to rollback trades, since they are unregulated and all members are aware of that status. It is legit for them to decide, IMO.
2) What happens to people trading on the other exchanges who where negatively/positively affected by what happened at MtGox?
That is part of the risk of trading.
3) How / when should the market reopen?
Should orders of users on MtGox be put back where they were before the crash? or is it fairer to ask them whether they want or not?
Open orders is a tough call. Again, it is MtGox's decision to make, and I have no clue on what is fair in that case. If you remove the buy orders, how is that fair to the sellers?
Thank you for an interesting thread...
June 19, 2011, 04:41:15 PM
I suggest a few options-
1) The exchange needs to be closed for 1-3 hours a day for maintenance and security upgrades.
2) The exchange should be closed when there is not an actual person representing the exchange online and ready to support the functions of the exchange
3) The exchange should be closed on Saturday and Sunday since most people cannot get funds in and out on these days anyway. It can also be used for an extended maintenance period.
4) The exchange should limit the maximum amount of BTC to be placed in a buy/sell order (I think 1 to 5 thousand BTC is MORE than reasonable). Users should only be able to have a certain amount of buy/sell orders open.
and what I think is the most important one-
5) GET RID OF THE TRADING API! BOTS ARE NOT GOOD FOR EXCHANGES! They have been manipulating the market non-stop. Get-rid of the API and the bots go away.
Mt.Gox has been resting on it's laurels too long, the site owner(s) have been sleeping at the wheel and dreaming of all their profits.
1) The exchange needs to be closed for 1-3 hours a day for maintenance and security upgrades.
2) The exchange should be closed when there is not an actual person representing the exchange online and ready to support the functions of the exchange
3) The exchange should be closed on Saturday and Sunday since most people cannot get funds in and out on these days anyway. It can also be used for an extended maintenance period.
4) The exchange should limit the maximum amount of BTC to be placed in a buy/sell order (I think 1 to 5 thousand BTC is MORE than reasonable). Users should only be able to have a certain amount of buy/sell orders open.
and what I think is the most important one-
5) GET RID OF THE TRADING API! BOTS ARE NOT GOOD FOR EXCHANGES! They have been manipulating the market non-stop. Get-rid of the API and the bots go away.
Mt.Gox has been resting on it's laurels too long, the site owner(s) have been sleeping at the wheel and dreaming of all their profits.
June 19, 2011, 04:33:35 PM
Having followed and covered the market since Oct 2010, I am concerned about all people investing / trading / loving bitcoins after what happened today.
There are a couple of questions:
1) Is it legitimate to rollback trades or should the exchange cover the risks?
2) What happens to people trading on the other exchanges who where negatively/positively affected by what happened at MtGox?
3) How / when should the market reopen?
Should orders of users on MtGox be put back where they were before the crash? or is it fairer to ask them whether they want or not?
... many more questions...
It would be great to have some people experienced in exchanges helping to get an unbiased assessment quickly - to protect all users, and to at least have a chance to re-establish some trust on bitcoins.
I am sad, because this was predictable and many including me have warned that we need better, more secure exchanges.
There are a couple of questions:
1) Is it legitimate to rollback trades or should the exchange cover the risks?
2) What happens to people trading on the other exchanges who where negatively/positively affected by what happened at MtGox?
3) How / when should the market reopen?
Should orders of users on MtGox be put back where they were before the crash? or is it fairer to ask them whether they want or not?
... many more questions...
It would be great to have some people experienced in exchanges helping to get an unbiased assessment quickly - to protect all users, and to at least have a chance to re-establish some trust on bitcoins.
I am sad, because this was predictable and many including me have warned that we need better, more secure exchanges.
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