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

[hknews]

Today a fake news about "A Hong Kong based exchanger mycoin.hk run off with 3 billion HKD (around 380 million US dollar)" came out in public, however the number of money lost in this news are FAKE!

Remember the $10 dollar fake bitcoins sold at Mtgox's last life cycle, If you took the risk to buy 1000 of them, can you say you lost 1000 * $220 current market price = 220,000 dollars? Well Hong Kong media definitely do so, same thing is happening again with mycoin.hk.
Most bitcoins lost at there were bought at less than $20 US dollars each!




news link:
http://www.scmp.com/news/hong-kong/article/1707565/investors-fear-hk3b-losses-closure-bitcoin-trading-company
http://money.udn.com/storypage.php?sub_id=5603&art_id=696371
http://cablenews.i-cable.com/webapps/news_video/index.php?news_id=451648
....

These news are ALL USING THE FAKE NUMBER


Most Hong Kong local news reporters don't understand the whole thing or just make up this huge number to create the "big lost" story in the name of bitcoin(new tech + big lost always take eye-balls),

I will show you how this "3 billion Hong Kong dollars" was made out:

Mycoin.hk is the runoff exchanger here (NOT mycoin.com, some media reporters mistaken reporting the exchanger's website domain), This exchanger has a really small market share, even smaller than kraken.com, it used to have around 500 btcs trades per day but about a half year ago it started to delay and stop processing client's withdrawals, since it's too small not many people even know about it, only some of their clients talked about it at months ago.

Mycoin.hk also set the daily bitcoin withdraw limit to 0.5 btc per day(since 3-5 months ago), then 0.1 per day(since about 2-3 months ago), then 0.01 per day(since 1-2 months ago), during this crazy time, bitcoin price traded on their exchange market dropped from market price to $500HKD $200HKD $100HKD $50HKD $20HKD $10HKD.. There are two reasons of this drop: First, the exchanger was trying to attract fiat deposits and stop clients from asking withdrawals like the Mtgox did, almost every Chinese including Hong Kong citizens kept warning/laughing at this old trick, however there are always some people would take the risk and made deposits to buy their "super cheap coins" and hoping may be they can withdraw again someday, Second, the exchanger was trying to pretend everything is fine and their trading activity is still high.

Most people in Mainland China and Hong Kong SAR know about this situation at long long time ago (people talked about this at many Chinese bitcoin forum since the end of 2014), Now today the exchanger finally gone down as everyone's expected.

The interesting thing is now the media journalists sum all the bitcoins in mycoin.hk's clients accounts and get the 3 billions HKD number from:
Amount of fake and super cheap bitcoin * current market price = 3 billions HKD <-- well, this is fake because most of bitcoins there never existed and were "bought" by risk takers and existing desperate clients at a price from $500hkd(60 USD) to $100hkd(16 USD) to $10hkd(1.2 USD) in recent months.

In conclusion, A really small exchanger gone down, less than may be let's say half million HKD(including real bitcoins deposited at there) is lost (because mycoin.hk stop processing withdrawals at long time ago, some real clients must have lost something), "100000000+" or whatever fake bicoins bought at there at a super discount price (99.9% off) are also gone, a so call "3 billions HKD (300 millions USD) lost" was added up by media reporters with a formula "never existed & super cheap fake coins" * current market price = "fake 3 billions HKD"

If you are waiting for those "never existed & super cheap fake coins" dump into the market, not gonna happen,
If you are waiting for Chinese market to panic, give it up, most Chinese know the mycoin.hk exchanger would runoff at a half year ago

That's it, thank you for reading, and please, if someone know or connected to the Hong Kong news  media please ask them to correct this outrageous howler.

[readysalted89]

Most stolen coins have already been sold. Why do you think the price has gone down for over a year?

money is missing, not coins.

It sounds like coins might be missing in addition to money. There is a mycoin thread in the Chinese section here that says they were limiting what people could withdraw in December last year. The Google translated version is at this link. The translation is terrible, but it sounds like people could only withdraw a small amount of their total bitcoins on the site.

http://translate.google.co.uk/translate?hl=en&sl=zh-CN&u=https://bitcointalk.org/index.php%3Ftopic%3D887200.0&prev=search

[DaRude]

...long logical explanation of how a small exchange that was dying for over half a year finally closed down...

Well that'd explain why it made no effect on a market

[ElectricMucus]

It's more like one million of empty promises per sucker, most of the "funds" there probably were imaginary.

Well, if each contract was 400'000 HKD minimum ( = 52'000 USD = 230 BTC), and there were 3000 clients, then the scammers stole at least 150 million USD of real money from their victims.  At current prices that would be 680 kBTC.

It may be bigger than MtGOX, because we do not know how much MtGOX clients actually lost.  The 660 k BTC / 500 M USD figure is what they thought they had in their accounts, which (as in Madoff's case) may be a lot more than what they actually put in.

Makes sense.

[fonzie]

None of the newssites clams that they calculated the missing money with BTC/CNY prices. They don´t a say a word about the number of missing bitcoins. They say that people paid on average 400k$ KH for some contracts.
"Investors said they were lured by promises of a HK$1 million return in four months for buying a HK$400,000 bitcoin contract "
Most of this story has nothing to with real Bitcoins. It´s just a typical ponzi that has chosen to use Bitcoin for it´s marketing. But still, bad news is bad news(for Bitcoin) and missing FIAT money is still missing.

Stop bullscamming, no one will buy your overpriced coins. No sane chinese will ever put fresh money into anything that is related to Bitcoin afther this hits the news!

[hknews]

Most stolen coins have already been sold. Why do you think the price has gone down for over a year?

money is missing, not coins.

It sounds like coins might be missing in addition to money. There is a mycoin thread in the Chinese section here that says they were limiting what people could withdraw in December last year. The Google translated version is at this link. The translation is terrible, but it sounds like people could only withdraw a small amount of their total bitcoins on the site.

http://translate.google.co.uk/translate?hl=en&sl=zh-CN&u=https://bitcointalk.org/index.php%3Ftopic%3D887200.0&prev=search

please read my post to know about the whole thing, thank you

FAKE news: "3 billion HKD lost" in Mycoin.hk bitcoin exchange runoff
https://bitcointalk.org/index.php?topic=949959.0

hint1: clients were allowed to withdraw 0.01BTC per day at there
hint2: most client's fake super cheap bitcoins bought at mycoin.hk(the runoff Hong Kong exchanger) were less than $10 US dollars cost each, but now claim to calculate at the current market price

[NotLambchop]

...

[ChartBuddy]

Coin
Explanation

[Miz4r]

Stop bullscamming, no one will buy your overpriced coins. No sane chinese will ever put fresh money into anything that is related to Bitcoin afther this hits the news!

Stop bearscamming, no one will buy your dishonest opinion and sell so you can cover your short and make a profit.

[JorgeStolfi]

These news are ALL USING THE FAKE NUMBER
I will show you how this "3 billion Hong Kong dollars" was made out:
Amount of fake and super cheap bitcoin * current market price = 3 billions HKD <-- well, this is fake because most of bitcoins there never existed and were "bought" by risk takers and existing desperate clients at a price from $500hkd(60 USD) to $100hkd(16 USD) to $10hkd(1.2 USD) in recent months.

Well, your theory does not match the newspaper articles that I have seen.  They specifically say mining contracts (not exchange accounts) of 400'000 HKD each.  So if they really had 3000 customers, at a minimum those people lost 150 million USD in real money.  If the average client had 2.5 such contracts, than it would be ~380 million USD.

First, the exchanger was trying to attract fiat deposits and stop clients from asking withdrawals like the Mtgox did, almost every Chinese including Hong Kong citizens kept warning/laughing at this old trick, however there are always some people would take the risk and made deposits to buy their "super cheap coins" and hoping may be they can withdraw again someday, Second, the exchanger was trying to pretend everything is fine and their trading activity is still high.

Yep, just like MtGOX.  I recall someone boasting on this thread of having deposited 50'000 USD on MtGOX when it had already suspended withdrawals, to buy those cheap BTC (200 USD each IIRC, when the market was ~800).

EDIT: A scam that netted hundreds of millions and resulted in no convictions so far is worth trying again, no?

[fonzie]

Someone on Stamp is trying to sell the old ATH!




Bullish! 

[bassclef]

Someone remind fonzie to take his meds.

[samson]

I predict big dumping in the next week 

[fonzie]

Just a small reminder why the orderbook of Bitfinex often looks more bullish(than Stamp with its meager 3 mio USD). Due to the possibiliy of margin trading and using Bitcoin as collateral it is not necessary to deposit real or fresh USD over there. A lot of those bids are probably from early adopters using their huge BTC stash tryin to protect their investment with it. However as the price gets lower and lower their available net worth that is needed to place orders also gets lower, which leads to less and less USD bid sum if the price goes down. My guess is that 60-70% of the bids in the orderbook are created with BTC used as collateral, which could lead to a death spiral if we should get another huge crash below 150$ where people actually try to withdraw USD and no longer look to increase their BTC positions. Please correct me if i am wrong!

[fonzie]

Someone remind fonzie to take his meds.

I have (by accident) taken my whole monthly dose this weekend.   

[ChartBuddy]

Coin
Explanation

[Malin Keshar]

Someone remind fonzie to take his meds.

I have (by accident) taken my whole monthly dose this weekend.   

That's alot of estrogen.

and lots of viagra

[Sitarow]

Today a fake news about "A Hong Kong based exchanger mycoin.hk run off with 3 billion HKD (around 380 million US dollar)" came out in public, however the number of money lost in this news are FAKE!

Remember the $10 dollar fake bitcoins sold at Mtgox's last life cycle, If you took the risk to buy 1000 of them, can you say you lost 1000 * $220 current market price = 220,000 dollars? Well Hong Kong media definitely do so, same thing is happening again with mycoin.hk.
Most bitcoins lost at there were bought at less than $20 US dollars each!




news link:
http://www.scmp.com/news/hong-kong/article/1707565/investors-fear-hk3b-losses-closure-bitcoin-trading-company
http://money.udn.com/storypage.php?sub_id=5603&art_id=696371
http://cablenews.i-cable.com/webapps/news_video/index.php?news_id=451648
....

These news are ALL USING THE FAKE NUMBER


Most Hong Kong local news reporters don't understand the whole thing or just make up this huge number to create the "big lost" story in the name of bitcoin(new tech + big lost always take eye-balls),

I will show you how this "3 billion Hong Kong dollars" was made out:

Mycoin.hk is the runoff exchanger here (NOT mycoin.com, some media reporters mistaken reporting the exchanger's website domain), This exchanger has a really small market share, even smaller than kraken.com, it used to have around 500 btcs trades per day but about a half year ago it started to delay and stop processing client's withdrawals, since it's too small not many people even know about it, only some of their clients talked about it at months ago.

Mycoin.hk also set the daily bitcoin withdraw limit to 0.5 btc per day(since 3-5 months ago), then 0.1 per day(since about 2-3 months ago), then 0.01 per day(since 1-2 months ago), during this crazy time, bitcoin price traded on their exchange market dropped from market price to $500HKD $200HKD $100HKD $50HKD $20HKD $10HKD.. There are two reasons of this drop: First, the exchanger was trying to attract fiat deposits and stop clients from asking withdrawals like the Mtgox did, almost every Chinese including Hong Kong citizens kept warning/laughing at this old trick, however there are always some people would take the risk and made deposits to buy their "super cheap coins" and hoping may be they can withdraw again someday, Second, the exchanger was trying to pretend everything is fine and their trading activity is still high.

Most people in Mainland China and Hong Kong SAR know about this situation at long long time ago (people talked about this at many Chinese bitcoin forum since the end of 2014), Now today the exchanger finally gone down as everyone's expected.

The interesting thing is now the media journalists sum all the bitcoins in mycoin.hk's clients accounts and get the 3 billions HKD number from:
Amount of fake and super cheap bitcoin * current market price = 3 billions HKD <-- well, this is fake because most of bitcoins there never existed and were "bought" by risk takers and existing desperate clients at a price from $500hkd(60 USD) to $100hkd(16 USD) to $10hkd(1.2 USD) in recent months.

In conclusion, A really small exchanger gone down, less than may be let's say half million HKD(including real bitcoins deposited at there) is lost (because mycoin.hk stop processing withdrawals at long time ago, some real clients must have lost something), "100000000+" or whatever fake bicoins bought at there at a super discount price (99.9% off) are also gone, a so call "3 billions HKD (300 millions USD) lost" was added up by media reporters with a formula "never existed & super cheap fake coins" * current market price = "fake 3 billions HKD"

If you are waiting for those "never existed & super cheap fake coins" dump into the market, not gonna happen,
If you are waiting for Chinese market to panic, give it up, most Chinese know the mycoin.hk exchanger would runoff at a half year ago

That's it, thank you for reading, and please, if someone know or connected to the Hong Kong news  media please ask them to correct this outrageous howler.

Are you sure?

7:25pm EST

[damiano]

Just a small reminder why the orderbook of Bitfinex often looks more bullish(than Stamp with its meager 3 mio USD). Due to the possibiliy of margin trading and using Bitcoin as collateral it is not necessary to deposit real or fresh USD over there. A lot of those bids are probably from early adopters using their huge BTC stash tryin to protect their investment with it. However as the price gets lower and lower their available net worth that is needed to place orders also gets lower, which leads to less and less USD bid sum if the price goes down. My guess is that 60-70% of the bids in the orderbook are created with BTC used as collateral, which could lead to a death spiral if we should get another huge crash below 150$ where people actually try to withdraw USD and no longer look to increase their BTC positions. Please correct me if i am wrong!

No Shit Sherlock

[drbrock]

https://www.youtube.com/watch?v=JI6QJcICB40

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