BTC-E questionable practices

[laughingbear]

First off, I love BTC-E.  It is the only place that you can trade btc, and alt coins with any sort of real volume. The interface is excellent, especially with the newest update.

My problem with BTC-E, is that it seems like some insider trading is going on.  Adding NVC seems scammy at best.  BTC-E has a lot of influence, and it seems like favors are being used to pump up an alt coin.

This is not the first time I felt that something wasnt right with btc-e. (the recent RUC pump and dump influenced by support is another example)

I hope what is going on is legit, and caused by a Russian to English language barrier, but I think it is time to clear out my funds.



12.02.13 20:57:31 mrmattnc: what the crap; btc-e has seen 2 quick facelifts to add NVC and put prices on buttons, but we can't get LTC holdings in the top box?

12.02.13 20:57:39 dstruct2k: You're like a half hour late Balth.

12.02.13 20:58:06 usscfounder: Balthazar, glad you are here. Why did you make novacoin [nvc]

12.02.13 20:58:29 dstruct2k: usscfounder, he got bored of masturbating.

12.02.13 20:58:41 accelerus: how many NVC could I get per day mining on two 7970s?

12.02.13 20:58:51 fedaykinwolf: dstruct2k, is that possible?

12.02.13 20:58:57 system: dstruct2k was banned for 60m by Balthazar

12.02.13 20:59:19 bushsolo: accelerus, that's changing all the time as the difficulty climbs.

12.02.13 20:59:21 usscfounder: Balthazar, Is it true you premined nvc? this was posted earlier: https://bitcointalk.org/index.php?topic=143360.0

12.02.13 20:59:26 Balthazar: Nothing personal

12.02.13 20:59:42 Balthazar: usscfounder, no, it's not true.

12.02.13 20:59:45 system: Balthazar was banned for 60m by abbeytim

12.02.13 21:00:12 abbeytim: that was uncalled for

12.02.13 21:00:19 usscfounder: Balthazar, care to explain: https://bitcointalk.org/index.php?topic=143360.0

12.02.13 21:00:48 Sitokagi: thanks abbeytim. i was just about to comment on Balth. childish ban

12.02.13 21:00:54 system: abbeytim was banned for 60m by Balthazar

12.02.13 21:00:56 brie: sorry i missed whatever you guys said at me

12.02.13 21:01:04 brie: my laptop shut down on me

12.02.13 21:01:09 cryptodrifter: lol wut

12.02.13 21:01:30 system: Balthazar was banned for 60m by bettor

12.02.13 21:01:36 usscfounder: Balthazar, in the chat it say you only offered to the russians and not to anyone else. would that constitute a premine?

12.02.13 21:01:37 brie: well it wasn't responding and i accidentily hit the power button

12.02.13 21:01:39 Sitokagi: oh wow now he's getting more childish because people don't like how he is abusing his moderator priviliges

12.02.13 21:01:47 support: :facepalm:

12.02.13 21:01:57 system: support was banned for 1m by support

12.02.13 21:02:05 cryptodrifter: LOL

12.02.13 21:02:12 GenTarkin: abby was banned?!

12.02.13 21:02:15 brie: :hmhm:

12.02.13 21:02:18 efx: support, I think someone needs their MOD revoked

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[bitcool]

Won't be surprised if this happened.

Actually I'd be very surprised if insider trading doesn't happen on ANY exchange if the owners remain anonymous. The temptation is just too great.

[kcminer]

Explain to me how insider trading would even work on an Exchange? The site doesn't set the price of the coin. Giving more attention to another alt coin you mean?

[crazy_rabbit]

Explain to me how insider trading would even work on an Exchange? The site doesn't set the price of the coin. Giving more attention to another alt coin you mean?

Well in theory an exchange could be selling their own coins first, for example. Or making fake orders to boost the price and fill the orderbook to make it look busy and in demand.

[smoothie]

Explain to me how insider trading would even work on an Exchange? The site doesn't set the price of the coin. Giving more attention to another alt coin you mean?

Well in theory an exchange could be selling their own coins first, for example. Or making fake orders to boost the price and fill the orderbook to make it look busy and in demand.

this ^

Not impossible.

[bitcool]

Explain to me how insider trading would even work on an Exchange? The site doesn't set the price of the coin. Giving more attention to another alt coin you mean?

Because of asymmetric information, you can front run your big customers.

One step further, you are bold enough,  you can also play pump& dump, sell short. With large sum of customer's deposit, you have big leverage to manipulate the market (aka fractional reserve).  People can be much more reckless when they are anonymous.

[laughingbear]

 Wait until the price of BTC is good and high first, for max profit...  take a broken coin and clone it, then release it only to people associated with the exchange. Then on a Monday morning, after everyone has a good stash of the coin, add it to the front of your exchange.  Play with the first few sales to get the price good and high, and then DUMP it all, once people jump on the "new coin bandwagon" 

[SAC]

See no one has mentioned the questionable practice of the buying and selling to yourself that every exchange I have ever tested it on allows you to do. A nice bonus feature for the market manipulators on all the exchanges.

[crazy_rabbit]

See no one has mentioned the questionable practice of the buying and selling to yourself that every exchange I have ever tested it on allows you to do. A nice bonus feature for the market manipulators on all the exchanges.

Very true. Additionally I think it should be mentioned that no one has any proof of anything.

[bitcool]

Very true. Additionally I think it should be mentioned that no one has any proof of anything.

True. Though it's usually also true that: concentration-of-power + lack-of-transparency = corruption

I for one have been spooked by this RUC+NVC episode and will be more aware of protecting myself.

[payb.tc]

i love btc-e too, but i never keep money on there.

whenever i want to trade btc<->ltc i follow these steps:

1. start TOR
2. register at btc-e.com with a random email address (it's unneeded)
3. deposit BTC/LTC
4. trade at market (not limit orders: that would keep funds on btc-e for too long for my liking)
5. withdraw BTC/LTC
6. burn account and close TOR

[laughingbear]

This nvc situation is becoming worse. Most people see the scam, so why aren't people upset with btc-e?  I think its time for a new exchange that is more transparent.

[FuzzyBear]

saddens me to see the hashing power dedicated to it over at coinotron to come on people read a bit before jumping on a bandwaggon!!

[crazy_rabbit]

i love btc-e too, but i never keep money on there.

whenever i want to trade btc<->ltc i follow these steps:

1. start TOR
2. register at btc-e.com with a random email address (it's unneeded)
3. deposit BTC/LTC
4. trade at market (not limit orders: that would keep funds on btc-e for too long for my liking)
5. withdraw BTC/LTC
6. burn account and close TOR

Interesting! BTC-e won't ban you for using tor? MtGox says the will.

[crazy_rabbit]

saddens me to see the hashing power dedicated to it over at coinotron to come on people read a bit before jumping on a bandwaggon!!

I'm still on TRC and happy rolling in the coins!

[nethead]

saddens me to see the hashing power dedicated to it over at coinotron to come on people read a bit before jumping on a bandwaggon!!

While it is profitable ppl will mine it. I dont see any kind of scam here, if i had my own exchange and one of the devs/mods made their own coin i would def include it in the exchange

[bushstar]

The upside of NVC is that the LTC difficulty is going to drop. Two days and counting till the adjust.

Let's hope that BTC-e release a new coin every month so the quicker users can capitalise on the gold rush

[FuzzyBear]

saddens me to see the hashing power dedicated to it over at coinotron to come on people read a bit before jumping on a bandwaggon!!

While it is profitable ppl will mine it. I dont see any kind of scam here, if i had my own exchange and one of the devs/mods made their own coin i would def include it in the exchange

yeah it all good till your the last one holding all the coins and nothing to do with them....

[crazy_rabbit]

The upside of NVC is that the LTC difficulty is going to drop. Two days and counting till the adjust.

Let's hope that BTC-e release a new coin every month so the quicker users can capitalise on the gold rush

Except have you seen the buy orders? It's worth less then NVC, if they keep releasing coins they will buy LTC. If LTC doesn't trade on BTC-E, its bleak for LTC indeed.

[xorxor]

i love btc-e too, but i never keep money on there.

whenever i want to trade btc<->ltc i follow these steps:

1. start TOR
2. register at btc-e.com with a random email address (it's unneeded)
3. deposit BTC/LTC
4. trade at market (not limit orders: that would keep funds on btc-e for too long for my liking)
5. withdraw BTC/LTC
6. burn account and close TOR

Interesting! BTC-e won't ban you for using tor? MtGox says the will.

come on, its good tor is not banned, what are you, totalitarism fan?