Wall Observer BTC/USD - Bitcoin price movement tracking & discussion

[DefendKebab]

"Mycoin.hk", a bitcoin thing in Hong Kong, apparenly closed without warning and owners disappeared with all clients coins.  Losses seem to be about 3 billion yuan, or 500 million USD -- on the same level as the MtGOX collapse.

The nature of mycoin.hk's business was not clear.  It apparently involved mining, and perhaps some Ponzi-like scheme.  I could not tell whether it also worked as a live exchange.

Article in Chinese:
http://hk.apple.nextmedia.com/news/art/20150208/19034053

Google translation:

WASHINGTON virtual currency Bitcoin (Bitcoin) once touted, Hong Kong discovered bust incident involving three billion yuan. Legislative Councillor Leung Yiu-chung received nearly ten investors in Bitcoin for help, said the suspect was a bit currency trading scams and storage platform, the largest loss of over $ 10 million estimate amounted to 30 the number of people affected, involving an amount or up to three billion yuan, victims today collective police. […]

Bullish?  

Sub 200 incoming, china is going to give a massive dump in the coming days if the news are true.

Probably double digits.

[1715143363]

1715143363

[Dump3er]

pathetic dump attempt. will fail like the others.

You are deep in prayer, not?

Amen.

[JorgeStolfi]

Google translation:

WASHINGTON virtual currency Bitcoin (Bitcoin) once touted, Hong Kong discovered bust incident involving three billion yuan. Legislative Councillor Leung Yiu-chung received nearly ten investors in Bitcoin for help, said the suspect was a bit currency trading scams and storage platform, the largest loss of over $ 10 million estimate amounted to 30 the number of people affected, involving an amount or up to three billion yuan, victims today collective police. […]

EDIT: See also the reddit thread.  One comment in there claims that the report is incorrect.

Never heard of that site, 500 million USD? what? How is that even possible for an unknown site like that to have so many funds?

The math does not seem right.  If I understood the translation correctly, 30 victims sought the police and some losses (the largest ones?) were 10 million yuan.  That would be 300 million yuan, not 3 billion.  

Perhaps the reporter goofed?

Perhaps they extrapolated to 300 clients?

Number digits in China and Japan are traditionally grouped by fours rather than by threes, so that "2 million" is written "200 万" where 万 means "ten thousand".  Perhaps that is the source of confusion, either by the reporter or by Google Transalte?

EDIT: forget it, see the post by @jl2012 above

[NotLambchop]

...
It's a Ponzi involving some kind of mining contract. The scammer said they would pay 0.64BTC of interest per day for every 90BTC investment.

By the way, they claim 3 billion HKD, not CNY. But this 3 billion HKD is pulled out of their ass. Only 30 victims seek help and they claims loss of 1 million HKD on average. The legislative councillor speculates that there are 3000 victims and ALL OF THEM lost 1 million HKD. That's how the 3 billion HKD calculated.

TL;DR: Bitcoin scam not as successful as the article suggests.
Bullish!

[AllTheBitz]

where's pumper we can't see you those days price should move i think there's who fight bitcoin (Banks) 

[DefendKebab]

...
It's a Ponzi involving some kind of mining contract. The scammer said they would pay 0.64BTC of interest per day for every 90BTC investment.

By the way, they claim 3 billion HKD, not CNY. But this 3 billion HKD is pulled out of their ass. Only 30 victims seek help and they claims loss of 1 million HKD on average. The legislative councillor speculates that there are 3000 victims and ALL OF THEM lost 1 million HKD. That's how the 3 billion HKD calculated.

TL;DR: Bitcoin scam not as successful as the article suggests.
Bullish!

Lots of growth potential for Bitcoin ponzi scheme's.

[fonzie]

...
It's a Ponzi involving some kind of mining contract. The scammer said they would pay 0.64BTC of interest per day for every 90BTC investment.

By the way, they claim 3 billion HKD, not CNY. But this 3 billion HKD is pulled out of their ass. Only 30 victims seek help and they claims loss of 1 million HKD on average. The legislative councillor speculates that there are 3000 victims and ALL OF THEM lost 1 million HKD. That's how the 3 billion HKD calculated.

TL;DR: Bitcoin scam not as successful as the article suggests.
Bullish!

Lots of growth potential for Bitcoin ponzi scheme's.

 

[Sitarow]

11:41AM EST

[picolo]

...
It's a Ponzi involving some kind of mining contract. The scammer said they would pay 0.64BTC of interest per day for every 90BTC investment.

By the way, they claim 3 billion HKD, not CNY. But this 3 billion HKD is pulled out of their ass. Only 30 victims seek help and they claims loss of 1 million HKD on average. The legislative councillor speculates that there are 3000 victims and ALL OF THEM lost 1 million HKD. That's how the 3 billion HKD calculated.

TL;DR: Bitcoin scam not as successful as the article suggests.
Bullish!

Lots of growth potential for Bitcoin ponzi scheme's.

 

We will go down to sub-200$ within a week because they planned on dumping more only to buy back cheaper and make a huge profit. Maybe

[dakota neat]

bears getting angry, lol. they can't even manage to lower the price five bucks on sunday noon.

[fonzie]

...
It's a Ponzi involving some kind of mining contract. The scammer said they would pay 0.64BTC of interest per day for every 90BTC investment.

By the way, they claim 3 billion HKD, not CNY. But this 3 billion HKD is pulled out of their ass. Only 30 victims seek help and they claims loss of 1 million HKD on average. The legislative councillor speculates that there are 3000 victims and ALL OF THEM lost 1 million HKD. That's how the 3 billion HKD calculated.

TL;DR: Bitcoin scam not as successful as the article suggests.
Bullish!

Lots of growth potential for Bitcoin ponzi scheme's.

 

We will go down to sub-200$ within a week because they planned on dumping more only to buy back cheaper and make a huge profit. Maybe

They, the early adopters, thiefs and scammers are already making huge profits by selling you their overpriced (>100$) coins.

[manfred]

"Mycoin.hk", a bitcoin thing in Hong Kong, apparenly closed without warning and owners disappeared with all clients coins.  Losses seem to be about 3 billion yuan, or 500 million USD -- on the same level as the MtGOX collapse.

The nature of mycoin.hk's business was not clear.  It apparently involved mining, and perhaps some Ponzi-like scheme.  I could not tell whether it also worked as a live exchange.

Article in Chinese:
http://hk.apple.nextmedia.com/news/art/20150208/19034053

Google translation:

WASHINGTON virtual currency Bitcoin (Bitcoin) once touted, Hong Kong discovered bust incident involving three billion yuan. Legislative Councillor Leung Yiu-chung received nearly ten investors in Bitcoin for help, said the suspect was a bit currency trading scams and storage platform, the largest loss of over $ 10 million estimate amounted to 30 the number of people affected, involving an amount or up to three billion yuan, victims today collective police. […]

EDIT: See also the reddit thread.  One comment in there claims that the report is incorrect.

Moral of the story to not do business with a Hong Kong registred Bitcoin enterprice.
In the past several Hong Kong exchanges have run away with costomer funds  (GBL, 796, mycoin, ANX.....), basicaly anyone dealing with a hong kong registered exchange deserves to get goxed

[aztecminer]

everyone... i do not believe this is going sub-200 again. every time it drops there is a huge battle.

lawl.

Very battle on such declining volume, so impressive.

your bears are weaksauce .

[octaft]

Who pays to have a credit card?

The world is bigger than your hometown. I have to pay an annual fee just to have one.

Well some people here only get offers involving annual fees, but it's always because of godawful credit.

[Sitarow]

everyone... i do not believe this is going sub-200 again. every time it drops there is a huge battle.

lawl.

Very battle on such declining volume, so impressive.

your bears are weaksauce .

https://www.youtube.com/watch?v=LtZmr6zZCcs&feature=share

[fonzie]

everyone... i do not believe this is going sub-200 again. every time it drops there is a huge battle.

lawl.

Very battle on such declining volume, so impressive.

your bears are weaksauce .

[gentlemand]

eye opening interview on bitcoin's current state from futurologist Vinay Gupta...

https://bitcoinmagazine.com/18000/bitcoin-is-teaching-realism-to-libertarians-an-interview-with-old-school-cypherpunk-vinay-gupta/

especially these snippets..

Many bitcoiners would rather not see Wall Street involved at all, in order to preserve Bitcoin’s promise of freedom…

Well, that kind of utopian vision, unfortunately, is total horses*t for Bitcoin. There are three problems: natural monopolies, cartels, and power law distributions of wealth.

Bitcoin-mining is specialized by groups with heavy technological capability and enough financial strength to get custom hardware made. These miners have now pooled their computing power together because it evens out their earnings, effectively minimizing their risk. In the case of Ghash, this even puts them perilously close to the 51% point for control of the blockchain. This is cartel power.

Meanwhile, the distribution of bitcoins seems to replicate the current situation where 300 billionaires control the same amount of wealth as three billion poor people. This is partly because of early adopter dynamics and the increasing hardship of the mining process, but there’s also some evidence that power law distributions of wealth is just what happens in unregulated economies. This is a point many libertarians would argue against… but we’re doing the experiment right now, and there’s every indication that the basic structures of libertarian economics do push into that direction.

And then you have the Bitcoin Foundation, which is emerging naturally from the Bitcoin environment simply because it has established an economically efficient configuration. By paying the technical priesthood of Bitcoin known as the Core developers, the Foundation has created a huge amount of centralized power within a system that didn’t really start with any, which has now effectively turned it into a natural monopoly. And once you have a monopoly, it looks like a state. No wonder that the Bitcoin Foundation looks so frightening.

I've no idea why any of that should be a surprise to anyone. It takes money to operate in BTCland so those who have more of it will naturally veer towards dominating it if they so choose.

Not so sure about the Bitcoin Foundation lording over everything though. Enough people regard it as a seedy joke already. I don't think it would take much for a more viable setup to leave it behind, if a need was felt for it.

[fonzie]

Sitarow,

hey i would like to tell you that nobody cares for your stupid graphs. STOP IT AND GET THE FUCK OFF!


THANKS AND BEST WISHES

FONZIE

[NotLambchop]

...
Moral of the story to not do business with a Hong Kong registred Bitcoin enterprice.
In the past several Hong Kong exchanges have run away with costomer funds  (GBL, 796, mycoin, ANX.....), basicaly anyone dealing with a hong kong registered exchange deserves to get goxed

You're right, I feel much safer trading on exchanges like BTC-e, registered in Bulgaria not registered anywhere.
Not knowing the names of the principals also placates some of my concerns, because anonymity is paramount!

[jl2012]

Google translation:

WASHINGTON virtual currency Bitcoin (Bitcoin) once touted, Hong Kong discovered bust incident involving three billion yuan. Legislative Councillor Leung Yiu-chung received nearly ten investors in Bitcoin for help, said the suspect was a bit currency trading scams and storage platform, the largest loss of over $ 10 million estimate amounted to 30 the number of people affected, involving an amount or up to three billion yuan, victims today collective police. […]

EDIT: See also the reddit thread.  One comment in there claims that the report is incorrect.

Never heard of that site, 500 million USD? what? How is that even possible for an unknown site like that to have so many funds?

The math does not seem right.  If I understood the translation correctly, 30 victims sought the police and some losses (the largest ones?) were 10 million yuan.  That would be 300 million yuan, not 3 billion.  

Perhaps the reporter goofed?

Perhaps they extrapolated to 300 clients?

Number digits in China and Japan are traditionally grouped by fours rather than by threes, so that "2 million" is written "200 万" where 万 means "ten thousand".  Perhaps that is the source of confusion, either by the reporter or by Google Transalte?

EDIT: forget it, see the post by @jl2012 above

The land area of Hong Kong is just about the same as the New York City. If there were 3000 people here all losing 1 million HKD (129000 USD), I would literally expect blood on street.