Right now they are more then hinting at the fact that they want to settle all of this on an individual account basis. It would be in their best interest to do so, but I don't know what the laws are, and I'm not 100% certain they know either. They have somewhat pointed out a few times now that basically nothing is insured and other fine print BS that supposedly exempts them from not being able to handle this on an individual account basis. They're basically taking the "your coins, your problem" stance as of now.

One thing is clear, they don't plan on using a ****ing penny of their reserves or profits to help settle things.

Supposedly they are in individual wallets for each person

Kraken BTC selling at $25 less than GDAX. Is this wide of a spread normal?

I'm not a lawyer, but I know that they operate out of the british virgin islands. Basically a ****ing safe haven. I dont think they are going to declare bankruptcy, because of the fact that bitcoins as a digital asset remains mostly unregulated and their own personal TOS will rule above everything. Bankruptcy is a gigantic lose for everyone involved.

that's the weird thing about Finex is that this is not the case at all. Each deposit address is specifically tied to an account. When you deposit, you coins are never swept into a hot wallet, it just stays there. When you enter or exit a position, your coins are temporarily moved to a hot wallet to settle, and then returned to a new address once settlement occurs. In Finex's wallet hierarchal structure, there are no cold wallets at all. They created this wallet structure to hedge possible CFTC violations and remain ably serving american customers. It was a cute hack to show that each person has their own position on the blockchain, but it really exposed them to an enormous amount of attack vectors that arent generally possible at other exchanges.
not surprised at all. A lot of institutional investors and family offices that dont buy OTC buy on GDAX as their preferred exchange. Exact same thing happened at Brexit where Gdax led all exchanges. There is a youtube video of a family hedge fund office that specifically states he buys only otc and on coinbase.

Well finex claims they don't know what they are going to do with losses, but yet says they will have the site up with limited functionalitys, and an announcements about what will happen with losses.

Well if you don't know what you are going to do with losses now, how the hell do you know you will know later. The answer is they obv already know. Going to be sick to my stomach if I login and it shows 0 balance or something pennies on the dollar.

Hacking aside, what do the bitcoin gurus here think of the actual fundamentals? Is the threat of a hardfork still a possibility? Is lightening network actually going to solve the scaling problem?

As far as I understand, core is still chugging along, and barring colossal failures, everyone will stay. Lightning will happen and it will work though be a bumpy ride. I have not been very active recently in researching these two things though, so take that however you want.

Fwiw I've been buying BTC the last few days. The btc "issues" seem under control and the six-month future looks ok to me.

Bitcoin Core approaches changes and improvements to Bitcoin like Nasa does launching spaceships, or a Scientist reporting groundbreaking findings in a journal. There's only 1 chance to get it right, and you have to possess a 99.95% confidence level that the changes you're making are going to work as you intend it.

https://www.reddit.com/r/BitcoinMark...ow17?context=3

L-O freeking L. No way they get away with this unless the haircut is very small with intent to payback over time which seems unlikely since estimates are more like 80% haircut in this scenario. Selfishly, however, I would be quite happy if this somehow goes through however as I only had ETH there.

ONETIME!? I have ETH and ETC loaned out. Is it possible I'm included in that group?

Also, I have a pretty good feeling they are going to get away with whatever they want considering their TOS and being offshore and what not.

Someone teach me about this loaning business?

Just learning about it now from what I gathered someone let me know if im wrong. Is that you can loan bitcoins for 2-60days with a different interest rate. I think they are no risk loans (excluding exchange) because the person taking the loan can not remove the loan from the exchange and at any point if his position gos below the amount he will owe when the contract ends they exchange automatically closes his position's.

Annual return I quickly calculated was about 20bitcoins returned annually if you started with 40 of them.


Nevermind I dont understand it at all because if they close postions once he cant pay how do they ever start a position?


edit- They actually have funds they just shorting btc on margin so the only risk is through the 3rd party (exchange). 1btc can turn into 1.8 btc if u loaned it out all year.

If you have an exchange that loans btc or has options on it, run away from it, run away fast.

Exchanges that allow margin trading/shorting require people to loan out their coins. Rates vary drastically depending on market volatility/demand. During dry times, rates can get as low as .002%/day.. during juicy times they can get as high as .5%/day. The ballpark avg is between about .02-.08/day.

When loan rates get super high in the .5%/day avg they don't tend to be lent out long. The borrower can choose anytime they want to close the loan, but the lender is locked into what they're pre defined term was. If they say 30 days and the borrower wants to keep it for 30.. they have to stick with it. The borrower can quite after 20 minutes if he wants.

crazy rumors.

bfx coin!

LMAO, wouldn't put it past them if they thought they could make a buck. And I'm only laughing because I was hinted that I actually might get my money back.

lol i dont know that they are trying to make a buck here, clearly they dont want to just bury the company.

fwiw mtgox had plans to do the same thing.


issue a token that behaves like a bond. I honestly think a lot of people would pay a crazy premium to buy bfxcoin.

Hopefully they do anything apart from bankruptcy. Might as well experiment.

What would be the downside of temporarily placing withdrawal limits on existing accounts? People would certainly cap their withdrawals, but I imagine traders would continue trading and bfnx thus keeps open a revenue stream. I hold there solely USD and would join any program that helps keep the company solvent.

I can't imagine what the margin rates on finex are going to be after this. Guessing they will go up on polo too considering people will be more cautious about storing stuff on exchanges. Really need these decentralized exchanges to take off.

The future of all centralized Bitcoin depositories is multi sig.

2 of 2
3 of 3
3 of x

Where 1 key is the customers'. I think there are exchanges coming soon that will have this feature.

Another very safe method is simply having enough air gaps and sand boxes in a multisig. If you manually sign a multisig offline in a 3 of 3 or 3 of x manner that is also fine.

The issue is that these places get complacent while the hacker has infinity time to map out their network protocols and servers.

If I ran a Bitcoin business I would sign **** offline and demand my coo CEO equity investors, etc have a strict sandboxed protocols for moving coins into a hotwallet. Instant withdrawals should not exist in exchanges. The truth is that there has to be a human element that broadcasts a signed message. That human element must inspect the entire withdraw log before he pushes the signed tx onto the Internet.

this is also a big deal:

https://download.wpsoftware.net/bitc...mblewimble.txt

I'm not technically advanced enough to fully understand this, but reading this it appears that the author believes that the UTXO set possesses enough entropy such that you no longer need the entire blockchain to verify transactions-- or, specifically unspent outputs (final destination of bitcoins stored). It removes a lot of redundant data that is needed to write transactions onto the blockchain.

36.07% complete socialized loss. Usd included.

Finex coin real

I'm confused by the compensation arrangement. Do account holders lose 36% of their current assets and in exchange get credited bfx coins equal to the lost value? So someone with $10k USD on the exchange now has $6.5k USD and $3.5k bfxc?

How does this compensation compare to what asset holders would receive from bankruptcy?

My feeling is very ****ing high.

If you go to bankruptcy you are at the mercy of dubious laws and judges regarding digital assets. Then you have to consider how difficult it would be for someone with an unverfied acct proving Bitcoin losses. I can imagine a scenario where a judge rules that only verified accounts will receive compensation and everyone else is stuck in predatory at the random discrimination of a claims administrator who has no idea how to deal with Bitcoin claims.

Now we haven't even gotten to the two biggest factors with being a creditor: opportunity cost and cost of lawyers.