How can it be 100% if the lossed at least 10% of their entire customer funds?
Let's be real unless they have excess coins of their own that they will use to bite the bullet, they are insolvent.
They said balances will be honored in full but not when... Don't forget they received $10 million investment not so long ago. I am wondering why they received 10 MIL. for...what? Improving their hacked platform? raising the salaries?  |
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When there will not be any new fouls to "invest" in Bitcoin, the system will collapse.
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Bitcoin will not collapse if nobody "invests". It does not need investors. It works well regardless of the value of a bitcoin. what you mean with "works well" ? if nobody investing(come with new money in system), who will use it then? please explain. let's say you want to "sell" your bitcoin. to whom will you do it? |
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how many "hacked" exchangers did that until now (seek an emergency funding) ? All of them had Limited companies (LTD) do not mix up the things. everything is possible in the Bitcoin industry. who will give them 5 MIL USD? it's not 500K...it's 5 MIL and the one who is lending,wants to be sure that he will get the money back. Bitstamp will never be what it was even they will cover the losses. So, they won't have the same profit not even near. nobody will lend them for a long period of time because this is a volatile market. you can never what it's bringing tomorrow. |
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And definitely a bad advertisement for Bitcoin as a currency  In public magazines, bitcoin is always related to hackers, steals, frauds and illegal activities, which pisses me off which is true and we have to admit it. there is a small percent of people who are using it for "trading" only. it is a manipulated market(exchangers are doing it). a simple example is today. Bitstamp died and the BitCoin price is the same. Do not tell me that the people were not in a little panic and they didn't sell or others were so enthusiasts and bought same day with the Bitstamp crash. Normally, the price should go down at least for few hours or so. it's obvious that the other big exchangers and the Bitcoin foundation are making the game... True... http://bitcoinity.org/markets/list?currency=ALL&span=6mFor 6 months timespan, Bitstamp has only 4% of the market. China leading with almost 80% I doubt that. Why? because the chineses (Okcoin, BTChina, Huobi and others) are faking the data. http://www.ibtimes.co.uk/chinese-bitcoin-exchange-accused-faking-trade-data-1430122 |
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nobody is safe on internet. any website can be hacked BUT you can take enough measures to prevent your funds to be stolen. Yes, it may happen that your website to be hacked. That's it...you are not the only one who is hacked....but not the funds or at least they steal a small part of it not 5 MIL. how is it possible to keep 19K BTC in an operational wallet? why so much? normally, someone from Bitstamp should have moved most of it to other wallet(cold one) immediately after the wallet reached 2-3K bitcoins. Thats's why they have employees. A such company, one of the biggest exchangers who is running millions of dollars, must have 24/24 permanent staff. |
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And definitely a bad advertisement for Bitcoin as a currency In public magazines, bitcoin is always related to hackers, steals, frauds and illegal activities, which pisses me off which is true and we have to admit it. there is a small percent of people who are using it for "trading" only. it is a manipulated market(exchangers are doing it). a simple example is today. Bitstamp died and the BitCoin price is the same. Do not tell me that the people were not in a little panic and they didn't sell or others were so enthusiasts and bought same day with the Bitstamp crash. Normally, the price should go down at least for few hours or so. it's obvious that the other big exchangers and the Bitcoin foundation are making the game... |
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Was this an inside job?  we cannot exclude that. Bitstamp is an old and big exchanger.It was supposed to have good programmers. Why weren't hacked half a year ago? I bet many others hackers have tried to steal their Bitcoin until now. let's not forget that this is a pattern for "how to run with the money" in this industry. |
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I doubt they have $5 million of their own cash profits sitting around waiting to cover this loss.
it's no problem, indeed, the price only $260 now, 18,000 BTC just $4,680,000, i think this is a piece of cake for bitstamp How is it a piece of cake? A financial report of Bitstamp showed they had 800k profit for a large period of time. Not sure 4-5 million is coverable by them. may the speak of bitstamp ceo "the bulk of our bitcoin are in cold storage, and remain completely safe"https://twitter.com/nejc_kodric/status/552091195795845120It doesn't matter whether there's gazillion bitcoins safe in cold storage, these are all customers' deposits. If they've lost 19,000 BTC, they have to compensate for that. So the only question is whether they can afford it. OR if they want. The easiest way would be to close the biz, take the rest of the money and Bitcoin and done. a huge part of these 5 MIL are into their bank account. Who is interested to keep Bitcoin? They are interested in real cash, the one from bank. They lost some numbers on a screen but they own the money in bank. |
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Bitstamp is closed but we know that they are related with Coinbase,Bitfinex and other exchangers who were processing their orders through them. The question is which one will be affected of this loss.  |
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this is one pattern but many exchangers are dealing themself as user B |
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Looks like 10k BTC per day is a nice reasonable number to assume is their average daily volume traded.
Based on those numbers I do not believe they have enough to cover said losses in full. Remember now they have expenses over that year.
For most financial companies holding other people's money, losing 5-10% of assets under management pretty much guarantees insolvency. $5 million in operating cash is probably more than what a typical $1 billion hedge fund would have. Do they have insurance? of course they don't. who will insure them? they are not regulated I think their "boss", DAN MOREHEAD will give them money. |
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Bitcoin is like a ponzi scheme. No new comers, the price is falling ,right? More new comers, the price is raising same for HYIPs. they last as long there are new comers. Yes, the Bitcoin system itself can last but useless if nobody is using it. When there will not be any new fouls to "invest" in Bitcoin, the system will collapse. The exchangers will not be interested to accept and then....death Now, Bitcoin is used for cyber crimes and speculative investment(short period of time). |
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I doubt they have $5 million of their own cash profits sitting around waiting to cover this loss.
I don't think so too. If (!) they will recover the loss Bitstamp must use their own profit for the next few months to do so. very good point. |
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Bitcoin price is going down = exchangers are making millions from the difference of price. Bitstamp will pay(IF) the so called loss from your money not from their own pockets. - let's say you bought 250 BTC with 100K via bank wire. 1 BTC = 400 - you trade for a while and you see the price is going down. what do you think? hey, let's sell and I am recovering a part of my money; and you sell. - now, you will you see 250 BTC for 70K. 1 BTC = 280 USD The exchanger will send you the bank wire for 70K but he is sending the transfer from YOUR 100K. Exchanger profit = 30K because he has your 100K (USD/EURO) in his bank account already. Now, a new "investor" will come thinking "Bitcoin price is down, it's time to buy". The price is raising and then it will fall. Of course, the big exchangers are "giving" money from the previous HUGE earnings just to attract new fouls with new funds. Smiley This is for a short period of time. They give "some" and they will earn A LOT. That's why they need visibility/noise in the news. Because with every single news other fouls will come with new funds. ...And that's why the exchangers are having very, very low fees of 0.2% for trading or free for withdrawals. They do not care about these money. The REAL money are made with the Bitcoin price. How can financial company exists with 0.2% per transaction? There are few BIG exchangers(Bitstamp is in this gang) and they give the Bitcoing price. They know the market, they know what funds are coming, the other small exchangers are related with them(all the small exchangers are exchanging with the big ones) . Now, tell me. Do you really think that there is no manipulation on market? I am not addresing the question to monkeys, hipters but to people with a human brain Smiley Get real, the exchangers are making millions from the Bitcoin price and not from "trading" Well, no. 1. You tend to forget that you do not trade "with" an exchange, but "over" an exchange. If youa ctually bought at 400/BTC and then sold at 280/BTC someone will be having the money you now do not have anymore. But this someone is not the exchange. It is another trader (could be me;). -->exchanges need the money from fees (there are way better ways to cheat anyway). 2. Yes there is manipulation. massive manipulation. it is because it is not forbidden at all. But again, giving only the exchanges credit for that would be wrong. simply unregulated market. live with it or go to a regulated market. but donīt make yourself be sorry about it. -->Why does a dog lick his balls? right. thatīs why. 1. so, you send 100k to an exchanger to buy 250 BTC/400 USD and then you sell 250 BTC for 270 USD. The money are already in the exchanger's bank account; those 100 K. you will only get 70k. there is a difference of 30K IN THE exchanger's bank account. 100-70 = 30K "other trader"(or maybe the exchanger in disguise), anyway...you as seller do not care, is coming to buy 250 BTC but for 270 USD for a total amount of 70K. what did I say wrong? you will lose 30K in any way you want. This money belongs to the exchanger because he received your initial deposit of 100K. The new "trader" will have to wire 70K to exchanger in order to get 250 BTC. 2. you are right. unregulated market. then,the people should not cry after their money lost with MTgox or with other exchangers. I see where you are going. So all the money in the exchanges bank account belongs to the exchange? well that is only true, if you believe the exchange will not payout your fiat balance and simply keep the money (Then again all the 100k would be "lost" as soon as you deposit them). But this is not what is going on at bitstamp, this is what is going on at hitbtc right now. no, I am saying that the exchanger will pay you the money, 70K but he will keep 30K because the price, guess what, fell those 30K belongs to whom? where are those 30K? 30K are in intial 100K that you initially sent to exchanger. the exchanger will pay you 70K from your 100K. 30K is lost for you and "earned" for exchanger and all that because "they can" why do you think so many people are involved in this business? for 800K profit per year(this is what Bitstamp declared in 2013)? ha ha... They hired a forner Paypal chief. Do you think that this guy came for 3000 USD per month? he came for at least 20K/month. BitStamp is having a lot of people to pay. They cannot afford to have 0.2% per trade the big money are coming from what I said above, Bitcoin price. Imagine they receive 2 MIL/day bank wire deposits. That means 7400 BTC/270 USD let's say the prices is dropping at 250 USD in 2 days(very possible). that means 7400 x 270 = 1,850,000 USD 2,000,000 - 1,850,000 = 150,000 USD in 2 days. now, try to calculate for the last month when the price dropped with 100 USD. 2 mil per day deposit x 20 = 40 mil usd. . they earn around of 2- 3 MIL NET PROFIT in ONE month We can over say 1 mil/month net profit. the "trading fees" are pocket money . |
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Bitcoin price is going down = exchangers are making millions from the difference of price. Bitstamp will pay(IF) the so called loss from your money not from their own pockets. - let's say you bought 250 BTC with 100K via bank wire. 1 BTC = 400 - you trade for a while and you see the price is going down. what do you think? hey, let's sell and I am recovering a part of my money; and you sell. - now, you will you see 250 BTC for 70K. 1 BTC = 280 USD The exchanger will send you the bank wire for 70K but he is sending the transfer from YOUR 100K. Exchanger profit = 30K because he has your 100K (USD/EURO) in his bank account already. Now, a new "investor" will come thinking "Bitcoin price is down, it's time to buy". The price is raising and then it will fall. Of course, the big exchangers are "giving" money from the previous HUGE earnings just to attract new fouls with new funds. Smiley This is for a short period of time. They give "some" and they will earn A LOT. That's why they need visibility/noise in the news. Because with every single news other fouls will come with new funds. ...And that's why the exchangers are having very, very low fees of 0.2% for trading or free for withdrawals. They do not care about these money. The REAL money are made with the Bitcoin price. How can financial company exists with 0.2% per transaction? There are few BIG exchangers(Bitstamp is in this gang) and they give the Bitcoing price. They know the market, they know what funds are coming, the other small exchangers are related with them(all the small exchangers are exchanging with the big ones) . Now, tell me. Do you really think that there is no manipulation on market? I am not addresing the question to monkeys, hipters but to people with a human brain Smiley Get real, the exchangers are making millions from the Bitcoin price and not from "trading" Well, no. 1. You tend to forget that you do not trade "with" an exchange, but "over" an exchange. If youa ctually bought at 400/BTC and then sold at 280/BTC someone will be having the money you now do not have anymore. But this someone is not the exchange. It is another trader (could be me;). -->exchanges need the money from fees (there are way better ways to cheat anyway). 2. Yes there is manipulation. massive manipulation. it is because it is not forbidden at all. But again, giving only the exchanges credit for that would be wrong. simply unregulated market. live with it or go to a regulated market. but donīt make yourself be sorry about it. -->Why does a dog lick his balls? right. thatīs why. 1. so, you send 100k to an exchanger to buy 250 BTC/400 USD and then you sell 250 BTC for 270 USD. The money are already in the exchanger's bank account; those 100 K. you will only get 70k. there is a difference of 30K IN THE exchanger's bank account. 100-70 = 30K "other trader"(or maybe the exchanger in disguise), anyway...you as seller do not care, is coming to buy 250 BTC but for 270 USD for a total amount of 70K. what did I say wrong? you will lose 30K in any way you want. This money belongs to the exchanger because he received your initial deposit of 100K. The new "trader" will have to wire 70K to exchanger in order to get 250 BTC. 2. you are right. unregulated market. who is controlling the market? who is owning the money and the resources? the exchangers, the big ones.so, they are manipulating the market. can you or me doing it? nope. then,the people should not cry after their money lost with MTgox or with other exchangers. |
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Bitcoin price is going down = exchangers are making millions from the difference of price. Bitstamp will pay(IF) the so called loss from your money not from their own pockets. - let's say you bought 250 BTC with 100K via bank wire. 1 BTC = 400 - you trade for a while and you see the price is going down. what do you think? hey, let's sell and I am recovering a part of my money; and you sell. - now, you will you see 250 BTC for 70K. 1 BTC = 280 USD The exchanger will send you the bank wire for 70K but he is sending the transfer from YOUR 100K. Exchanger profit = 30K because he has your 100K (USD/EURO) in his bank account already. Now, a new "investor" will come thinking "Bitcoin price is down, it's time to buy". The price is raising and then it will fall. Of course, the big exchangers are "giving" money from the previous HUGE earnings just to attract new fouls with new funds. Smiley This is for a short period of time. They give "some" and they will earn A LOT. That's why they need visibility/noise in the news. Because with every single news other fouls will come with new funds. ...And that's why the exchangers are having very, very low fees of 0.2% for trading or free for withdrawals. They do not care about these money. The REAL money are made with the Bitcoin price. How can financial company exists with 0.2% per transaction? There are few BIG exchangers(Bitstamp is in this gang) and they give the Bitcoing price. They know the market, they know what funds are coming, the other small exchangers are related with them(all the small exchangers are exchanging with the big ones) . Now, tell me. Do you really think that there is no manipulation on market? I am not addresing the question to monkeys, hipters but to people with a human brain Smiley Get real, the exchangers are making millions from the Bitcoin price and not from "trading" |
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Don't you find it interesting that it happend on the same day bitcoin broke through 12 month low? Totally. My weird mind says it's Bitstamp keeping people from selling. But it's just a drunk brain fart. why not? Bitcoin price is going down = exchangers are making millions from the difference of price. - let's say you bought 250 BTC with 100K via bank wire. 1 BTC = 400 - you trade for a while and you see the price is going down. what do you think? hey, let's sell and I am recovering a part of my money; and you sell. - now, you will you see 250 BTC for 70K. 1 BTC = 280 USD The exchanger will send you the bank wire for 70K but he is sending the transfer from YOUR 100K Exchanger profit = 30K because he has your 100K (USD/EURO) in his bank account already. Now, a new "investor" will come thinking "Bitcoin price is down, it's time to buy". The price is raising and then it will fall. Of course, the big exchangers are "giving" money from the previous HUGE earnings just to attract new fouls with new funds. This is for a short period of time. They give "some" and they will earn A LOT. That's why they need visibility/noise in the news. Because with every single news other fouls will come with new funds. ...And that's why the exchangers are having very, very low fees of 0.2% for trading or free for withdrawals. They do not care about these money. The REAL money are made with the Bitcoin price. How can financial company exists with 0.2% per transaction? There are few BIG exchangers and they give the Bitcoing price. They know the market, they know what funds are coming, the other small exchangers are related with them(all the small exchangers are exchaging with the big ones) . Now, tell me. Do you really think that there is no manipulation on market? I am not addresing the question to monkeys, hipters but to people with a human brain Get real, the exchangers are making millions from the Bitcoing price and not from "trading" |
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I don't think Bitstamp is going to disappear overnight like Mt. Gox. They've got a lot to lose. The company has generally been respected within the bitcoin community. In May 2014 it passed a proof-of-bitcoin-reserves audit overseen by BitcoinJ developer Mike Hearn, and in June it beat other bitcoin companies to win the Europas' Best Virtual Currency Startup Award. A lesson learned from the whole Mt.Gox debacle is that they need to keep communicating. This doesn't seem to be a priority at the moment. I'm still wondering where that statement on coindesk came from. It isn't on their website or twitter. So how would customers know (apart from reading coindesk). Having said that I don't think they'll go bust because of this. I've been using them since long before Mt.Gox started to slide and they've proven to be a reputable exchange. Coindesk are as bad as mainstream media channels these days and had at least one outright BS article lately, this ones pushing ripple so wouldn't be surprised if there's FUD in there. Getting hard to get good news these days, this forums spammed by astroturfers and there's a lot of FUD on the popular news channels, especially the forex coverage. Hope when they've something to say its something good but the biggest scumbags on the planet are fighting back now so the only thing certain is coins you have the keys for. what good news do you want? 50% fake transactions. the big exchangers are manipulating the price along with the Bitcoin Foundation, the exchangers are earning millions when the Bitcoin price is going down....this is the Bitcoin world; full of speculators and this how it will be from now on...I am not sure for how long... there are not too many NEW fouls to "invest" |
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call Bitstamp. travel to Slovenia if you are in Europe. it's 2 hours away of any Europe corner.
Company was moved to London i think last year. But founders grew up 15km from my home. They dont spend much time there and if they took money will not in future either. Well, we know BitStamp lost 5 MIL. what's next ? I don't believe that they will cover the shit. I think it will be a long process.... Their bank account will be frozen for sure if they announced police(as they already stated)..... 5 mil will be covered easy they probably make that much profit in one month. yes, agree with you but according to their audit, they had 800K profit now, either the financial statement is not good, either Bitstamp hide the money from accountant or together and this is tax evasion https://bitcointalk.org/index.php?topic=785256.0 |
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Well, we know BitStamp lost 5 MIL. what's next ? I don't believe that they will cover the shit. I think it will be a long process.... Their bank account will be frozen for sure if they announced police(as they already stated)..... |
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