Bitcoin Forum

Looks like Gox and BTC-e are both getting hit hard and the price has fallen from 130 to 103 in an hour?

This is getting ridiculous. How can this market possibly be sustainable like this?

I suppose the bullish types (if there are any left) will see this as an opportunity to scoop up sub-100 coins when the dust settles but the question is will it even climb back up after that? I'm beginning to be very skeptical now.

Congratulations, you win the weakest hands award.

If you are sceptical become sceptical of the validity of the DDOS claim. This smells like a scapegoat to me.

Sweet!

this ddos bla bla is complete bs - you could also argue that a ddos prevents both sides (including the sellers) from executing so why ddos->price fall?

Beat me to it

That wasn't a DDOS, that was someone trying to start a panic sell with a BTC5k wall. Panic sells only work when combined with lag.

MtGox is getting better at handling lag (slowly), and we're seeing the effects right now. It would have gone much lower than $106 otherwise.

The price almost doubled in 12 hours, why are you surprised it came back down some?

EXACTLY, of course it was going to drop, this isn't a revelation. Markets don't go in straight lines. Sure, maybe it could go lower, it would makes sense if it did, but currently it has been hovering in the 112-115 area. We'll see what happens.

Lol... i've been sitting here for hours and when I finally go to make a move, gox goes unresponsive.


What I still don't understand is why bitcoinity gets better information from gox earlier than clark moody and mtgoxlive is just fucking fucked up.

please see this rate drop in proportion to the run up of the previous hours. If viewed this way, it is utterly unspectacular, even a bullish sign. It was surprising we got through the $100 so easily. At the end of such a swing up, when the potential reservoir of people willing to buy is exhausted, there is always some swing back caused by people taking profits.


In fact, I can imagine the DDosers start to get disappointed now, when they realise that they can't really harm the bitcoin economy beyond Gox.

lmao, absolute classic

It looks like gox is offline. Their trading lag was not bad. If they are offline it probably means they are being DDOS'ed. That can create panic when it resumes. That's why I don't think we are out of the park yet. Someone is perpetually attacking gox and succeeding.

I rather think they pulled the plug. They want to stall the collapse for as long as possible to collect more fees. And since it is within the promised 48h "no fee" value propping area they don't loose any either.

If gox was doing any of this on purpose and destroying their own reputation then it's not to their monetary incentives is it? It's also not to their monetary incentives to have the price of bitcoin become lower.

Sorry that was meant they are propping volume.
I think the concept behind this is to increase volatility and as such the frequency of trades. Once the trading volume has gone up to this levels it will take a while for it to come down, during which they will collect fees.


As for their reputation: It's not like we can catch them doing it, we can either believe their explanations or come up with something our own. Neither of which can be proved either way.

They are obviously still vulnerable to DDoS attacks and therefore this will continue to happen over and over when it benefits the people doing it possibly for BTC/USD gains.

I'm almost sure that's some one missed the train and played a trick to scare the others out so that they can buy at much lower price. Other wise they don't need to initialize a DDOS to create panic

If they just want to cash out, they will make sure MtGox work flawlessly, they need as many as possible buy orders in the market so that they can sell more at a higher price. I guess they have tried to push down the price several times, all without luck, the price bounced back immediately, so this time they started the sell together with a DDOS, finally created the panic effect. Of course people's fear at high price also helped to achieve their goal

Look at the heavy volume when price are between 70 to 120, almost 400,000 coins are bought, that's 4% of total coins, who do you think are buying like crazy now? Before crash, these amount of bid volume could possibly send the exchange rate to $1000+

The strong hands were buying as the weak hands cowered in fear. I hope they weak ones made it out alive, but that is how markets work.

Hahaha.. More cheap coins!!

We know the game now. I only see opportunity.

It'll take more than a DDOS to affect market confidence.

So, when I can access the Mt.Gox site BUT bitcoinity has no reported activity for some number of minutes...what does this mean?

Mt.Gox is online but shut down trading?
Mt.Gox working properly but their API is offline?
Bitcoinity is lagging?
Issues arising from Mt.Gox changing the way their API works?

I think mtgox is changing the output of the api... looks to be dynamic, probably based on traffic to reduce lag.  I will see bitcoinity not report a sale for up to 5 min, then a flood of action and another delay.

This all seems to me too pretty borked imo

Thanks dandirk,

I see pretty much the exact same behavior. Since bitcoinity is AWESOME, i will assume the fault is on the Gox end. Does make it pretty much impossible to do quick trades, though.

I wouldn't take my work for it...  I am just guessing.  Bitcoinity I am guessing added/upgraded their servers after the crash.  So I would guess it is not on their end, but it could be.  I also see the same type of delay for bitfloor, though in that case bitfloor is reporting a ddos attacks.

They could also be issues with mtgox and traffic to... during these delays, mtgox also seems to be a little less active when refreshing the sell page/prices.

Maybe someone with more then guesses and observation will chime in.

Yesterday, Bitcoinity had a message on their site "Please ask Mt.Gox not to use a 5 min cache on the api data. Contact information here." or something similar.

I prefer 5 min cache on the api data if it keeps Gox alive.

MtGox looks down from here. "Error 109 (net::ERR_ADDRESS_UNREACHABLE): Unable to reach the server."

Seems active on the website... buy prices changing... but volume is pretty low...

The DDoS mythology is overblown....they use it as an excuse for any sell-off.

I thought you only posted under Proudhon?

I've had my own theories, which I won't rehash. I've seen some very questionable pricing and volume action on Gox. An unregulated exchange certainly leaves the door wide open to the full range of shenanigans circa 1920 NYSE.

Can you show me where on gox's site that they explain any deposits will be segregated and WILL not be used by the exchange to fulfill orders or allowing shorting (lending of depositor's bitcoins) without approval?