Bitcoin Forum

Economy => Service Discussion => Topic started by: zhangweiwu on April 04, 2014, 09:23:48 AM

Title: possibility of insolvency of Chinese exchange FxBTC examed
Post by: zhangweiwu on April 04, 2014, 09:23:48 AM
1. The exchange always charge the highest bitcoin withdraw fee (in this year lowered from 0.02 to 0.01), a behaviour adopted by MtGox when they are hit by TM bug.

2. The exhcange runs incognito like BTC-E.  They don't have a phone number, physical address - this is not new, it has always been like this. When I email to ask, the answer is simple: "(We don't tell our identity.) This is a business of trust, if you don't trust us, we can't serve you. You know what I mean." (The owner's name is not a mystery, do some searches you can find it out.)

3. They didn't lower fee under heavy competition: MtGox behave the same in attempt to regain solvency.

I don't speculate their insolvency with these 3 points, but recently:

4. They ceased to allow bank transfer withdraw. Withdraw is still possible through 3rd party payment processor (tenpay). They cited that their banks forced them to close account under PBOC order: but, the other two exchanges whose bank received such order only ceased bank-account deposite, not withdraw. Some banks may over-execute the PBOC order, but FxBTC have accounts in many banks, the chance of all of them over-execute the PBOC order is small. One can speculate it being a measurement to slow down withdraw. Here is the catch: if FxBTC really intend to slow down withdraw, they should stop 3rd party withdraw first, 'cos that arose little speculation. So, I cannot conclude FxBTC intends to slow down withdraw. But it is unusal at least, and I noted it.

With 4 unusual behaviour, I should say the possibility of their insolvency can be considered now.

I know they have not many users, and they have no English version; and I don't expect to get some splash here, but at leasat some who set up Google Alert may catch this message anyway. There is already one of the 15 PBOC-banned exchange closed: website went down. It is the time people take cautious.

P.S. I know the exchange has been hacked March 2013. On my scale, this doesn't count towards a factor of insolvency speculation: every exchange I believe are hacked to some extent and all willing to make up with a part of profit, if the lose is not much. What they do after the hack marks their insolvency.

Title: Re: possibility of insolvency of Chinese exchange FxBTC examed
Post by: zhangweiwu on May 12, 2014, 01:31:16 AM
I think it is happening now.