Spurious sounds a lot more right than you guys about this fwiw.

Not saying this happened, but it's also possible the gov didn't sell all the coins. There have been absolutely no updates from them on what the winning coins went for and there very likely won't be. They also reserve the right to not sell the coins. So if all the bids came in at say $300.. they could just say **** off you lost.

Once the coins start moving, more will be told. It's very odd not 1 winning bidder has come forward. Guess it's possible some anonymous whale just swooped em all up. $20 mil ish really isn't all that much.

If they did indeed go for well over market price, then almost assuredly the same person bought them all. The coins are worth a lot more to a large single investor than a lot of smaller investors.

The way this is worded

http://coinfire.cf/wp-content/upload...06/k99Kceg.png

"not a winning bidder" doesn't exactly mean you were outbid.

There's not much of what he said that sounded right. The price jump early in the morning seems to prove that pretty clearly.

So you are saying that there was demand for $20M in the morning?
I am still waiting for anyone of you guys to point out mistakes.

You are just as clueless as the rest if you think the market movement indicated that there is demand for bitcoins from all the people who did not win in the auction.



If you actually think that the demand in the grey area is 20M, I think you are utterly wrong.

This.

Hey guys I had $10 million myself bid at $200/coin!

So much demand!

So much fail in this thread, don't have time to deal with it all. I'll start here, where the basic criticism is correct but a lot of incorrect information is in here.


Spurious mostly right, but there is very real chance someone paid "above market" for the coins. Keep in mind that the market is not very liquid now and involves shady exchanges. Someone wishing to purchase a large amount of coins could very well get a better value buying a bit over market in an auction than trying to buy on an exchange. Of course, places that are interested in acquiring coins are likely hooked in with Coinbase and Bitpay to get their coins. Also keep in mind the price dropped pretty synchronously with the announcement of the auction, so a lot was priced in, and paying in between the old price and the "current" price might have been a great deal in this respect, as there isn't huge liquidity and a lot of panic sellers.

People putting in lowball bids is obviously Silbert trying to get a rally going. Wonder if he just overbid whatever the syndicate put in and that's why the syndicate lost. Silbert knows what the people who were part of the syndicate bid and if they won or lost.

The $20M on the market comment is also intentionally misleading. They want to drum up interest and excitement. Though the extreme that it's completely useless is also misleading. This wasn't a freeroll auction, people had to register and put up $200K as a deposit to make a bid. Now many could have been complete lowball bids, but many clearly were not. The format of the auction made a big incentive not to screw around too much with a super low bid. There was demand for coins, but at what kind of discount? We'll never know unless the auction data comes out somehow.

The idea from onemoretimes that the coins didn't even sell is also laughable and about as idiotic as the guy who claimed they'd sell for $1800. Don't even know where to get started with him.

yea i got some more information on it and it seemed super complicated and not very transparent. i've met barry silbert and he seems like a really smart/savvy guy, i would have been willing to throw a chunk of cash at this (seemed like it should be a significantly profitable, protected situation) that would perform exactly as his did with 5% vig but wasn't interested in participating in this inception style auction.

agreed

It's not that complicated really, it's just a lot of people coming together to bid on lots. If you didn't want to buy a full lot, which would run you a million dollars, you could put up less, and he'd find other people who'd pay the same price as you, and then make bids that way.

The whole auction itself is just very private. The funny thing is, that kind of stuff happens every day. There are private sales between early adopters and investors, sites like BitPay/Coinbase, etc... They don't have to tell anyone what they are selling the coins for or who is buying them, but then this auction happens and everyone is up in arms about it.

No I don't think from "all the people" and I don't think that's 20M but it does show that there was unfulfilled demand from the auction.

Where did this 20m figure come from if the bids arent public?

Every auction has unfulfilled demand or supply depending on the agreed price in the auction.

Dont make a clown of yourself

i think aggo is a little late for that.

Supposedly the SecondMarket syndicate had 20m worth of bids.

question was purely rhetorical

appears they bid 10-50% under market:
https://twitter.com/chamath/status/484019701580701696

It appears that some people bid that, and others bid just under market, and still weren't filled.

A single bidder took all lots. Guess we will never know for how much unless the Marshalls have to release how much they made on the auction somewhere in their public records. It also means the price was pretty much only an indication of how much this single entity was willing to pay to get their coins without risk.

newegg accepting

Tim Draper won auction:
https://medium.com/@vaurum/88f04a1d8598

Currently no market reaction

seems like a great buyer. congrats!

Not sure why they put in all the effort to run an auction and then it went to one buyer, pretty sure it could have been arranged in a private placement.

I guess the only reason might be getting a better price.

I think the main reason is this is standard liquidation process for seized assets.

I'm really happy he won, as it looks like the coins are going to be put to use as supposed to sitting on them (or reselling to other people to sit on). Quite surprised the market is not reacting to this, I think this is one of the best case outcomes.

He looks like a smart, well connected and experienced guy as well:
http://en.wikipedia.org/wiki/Timothy_C._Draper

And this is the biggest known VC buy to date (by a long way I think).