Topic: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion - page 22986. (Read 26709099 times)

Did mycoin run its own exchange or operate in association with another?  BFX is located in Hong Kong, right? 

I generally agree, except that there are claims that mycoin.hk operated also an exchange that scammed their clients too.  So there may be some consequences for other exchanges.

I generally agree, except that there are claims that mycoin.hk operated also an exchange that scammed their clients too.  So there may be some consequences for other exchanges.

Meh. Em Tee Gox was an exchange that was missing a lot of BTC and it only caused a couple of sudden drops with a market that expected those btc to make it to the remaining exchanges to sell. The mycoin.hk thing will likely have little effect on the market because, as I understand it,  it's an obvious fiat ponzi scheme that merely used bitcoin as part of the ruse. Ponzis are already illegal so no further legislation needed.

The mycoin.hk thing will likely have little effect on the market because, as I understand it,  it's an obvious fiat ponzi scheme that merely used bitcoin as part of the ruse. Ponzis are already illegal so no further legislation needed.

I don't think that there will be an immediate reaction to the mycoin.hk debacle (but I may be wrong, of course).

People have blamed bad press after the MtGOX collapse for the general price decline since Feb/2014.  I don't think MtGOX had that much influence, not even when it was fresh news (which is no longer the case). The only clear effects of MtGOX on price were a couple of sudden drops, notably on 2014-02-07 and 02-10, when Mark hinted/stated that there was a "bug in bitcoin".  But those drops were soon undone when the claims were dismissed.  As I said before, I believe that the general deciine since Feb/2014 is mostly due to the Chinese speculators getting disenchanted with bitcoin and taking their remaining money out of the market.

The mycoin.hk debacle may however convince the Chinese government to impose even stricter regulations about bitcoin trading; and those would surely have a large impact on the price (like the ones in March/April 2014).

What's up with the big market buys directly followed by big market sells. Stop orders?

No Shit Sherlock

Just a small reminder why the orderbook of Bitfinex often looks more bullish(than Stamp with its meager 3 mio USD). Due to the possibiliy of margin trading and using Bitcoin as collateral it is not necessary to deposit real or fresh USD over there. A lot of those bids are probably from early adopters using their huge BTC stash tryin to protect their investment with it. However as the price gets lower and lower their available net worth that is needed to place orders also gets lower, which leads to less and less USD bid sum if the price goes down. My guess is that 60-70% of the bids in the orderbook are created with BTC used as collateral, which could lead to a death spiral if we should get another huge crash below 150$ where people actually try to withdraw USD and no longer look to increase their BTC positions. Please correct me if i am wrong!

Today a fake news about "A Hong Kong based exchanger mycoin.hk run off with 3 billion HKD (around 380 million US dollar)" came out in public, however the number of money lost in this news are FAKE!

Remember the $10 dollar fake bitcoins sold at Mtgox's last life cycle, If you took the risk to buy 1000 of them, can you say you lost 1000 * $220 current market price = 220,000 dollars? Well Hong Kong media definitely do so, same thing is happening again with mycoin.hk.
Most bitcoins lost at there were bought at less than $20 US dollars each!




news link:
http://www.scmp.com/news/hong-kong/article/1707565/investors-fear-hk3b-losses-closure-bitcoin-trading-company
http://money.udn.com/storypage.php?sub_id=5603&art_id=696371
http://cablenews.i-cable.com/webapps/news_video/index.php?news_id=451648
....

These news are ALL USING THE FAKE NUMBER


Most Hong Kong local news reporters don't understand the whole thing or just make up this huge number to create the "big lost" story in the name of bitcoin(new tech + big lost always take eye-balls),

I will show you how this "3 billion Hong Kong dollars" was made out:

Mycoin.hk is the runoff exchanger here (NOT mycoin.com, some media reporters mistaken reporting the exchanger's website domain), This exchanger has a really small market share, even smaller than kraken.com, it used to have around 500 btcs trades per day but about a half year ago it started to delay and stop processing client's withdrawals, since it's too small not many people even know about it, only some of their clients talked about it at months ago.

Mycoin.hk also set the daily bitcoin withdraw limit to 0.5 btc per day(since 3-5 months ago), then 0.1 per day(since about 2-3 months ago), then 0.01 per day(since 1-2 months ago), during this crazy time, bitcoin price traded on their exchange market dropped from market price to $500HKD $200HKD $100HKD $50HKD $20HKD $10HKD.. There are two reasons of this drop: First, the exchanger was trying to attract fiat deposits and stop clients from asking withdrawals like the Mtgox did, almost every Chinese including Hong Kong citizens kept warning/laughing at this old trick, however there are always some people would take the risk and made deposits to buy their "super cheap coins" and hoping may be they can withdraw again someday, Second, the exchanger was trying to pretend everything is fine and their trading activity is still high.

Most people in Mainland China and Hong Kong SAR know about this situation at long long time ago (people talked about this at many Chinese bitcoin forum since the end of 2014), Now today the exchanger finally gone down as everyone's expected.

The interesting thing is now the media journalists sum all the bitcoins in mycoin.hk's clients accounts and get the 3 billions HKD number from:
Amount of fake and super cheap bitcoin * current market price = 3 billions HKD <-- well, this is fake because most of bitcoins there never existed and were "bought" by risk takers and existing desperate clients at a price from $500hkd(60 USD) to $100hkd(16 USD) to $10hkd(1.2 USD) in recent months.

In conclusion, A really small exchanger gone down, less than may be let's say half million HKD(including real bitcoins deposited at there) is lost (because mycoin.hk stop processing withdrawals at long time ago, some real clients must have lost something), "100000000+" or whatever fake bicoins bought at there at a super discount price (99.9% off) are also gone, a so call "3 billions HKD (300 millions USD) lost" was added up by media reporters with a formula "never existed & super cheap fake coins" * current market price = "fake 3 billions HKD"

If you are waiting for those "never existed & super cheap fake coins" dump into the market, not gonna happen,
If you are waiting for Chinese market to panic, give it up, most Chinese know the mycoin.hk exchanger would runoff at a half year ago

That's it, thank you for reading, and please, if someone know or connected to the Hong Kong news  media please ask them to correct this outrageous howler.

That's alot of estrogen.