If Cryptsy doesn't go Mt. Gox, I recommend withdrawing any assets you have left the moment they authorize withdrawals again. After this, I doubt I will return to using this exchange. I just hope it's not too late. I managed to withdraw a small amount of Zeitcoin right before this happened, so the wallet is working. I just hope they enable withdrawals again soon.
It's because of stupid shit like this that there is so little liquidity on these exchanges. It is also why there is so much regulation and policing of the fiat exchanges, and why we have federal insurance of banking accounts up to $2.5m (so if a bank goes under, the US tax payer will ensure you don't lose your savings, and everyone ends up eating the net cost...if any).
This is what the 1900s was like for fiat banking in the US by the way, complete with bank closures and robberies.
Just goes to show, having a new currency to compete with fiat is not enough. You have to have stable financial institutions (including exchanges) and businesses to go with it. Digital currencies just won't reach their potential without them.
Just some speculation between US, I think Cryptsy has been skimming off the top for over a year,
instead of keeping all of the coins there and only keeping the fees earned,
they decided to be like a Fractional-reserve bank and only keep a % of the coins deposited so they sold more coins than they took in.
Fractional-reserve banking is the practice whereby a bank accepts deposits, makes loans or investments, and holds reserves that are a fraction of its deposit liabilities.[1] Reserves are held at the bank as currency, or as deposits in the bank's accounts at the central bank. Fractional-reserve banking is the current form of banking practiced in most countries worldwide.[2]Fractional-reserve Banking fails when more people withdraw funds than deposit. The erratic payouts from them means they were playing fraction reserve with all of their coins, also explains why they kept dead markets open, closing the dead market would have gave reason for those coin holders to remove their BTC & LTC from cryptsy.
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The Bank runs in the 1930s led to the creation of The Federal Deposit Insurance Corporation (FDIC)
an independent agency of the United States government that protects the funds depositors place in banks and savings associations.
FDIC insurance is backed by the full faith and credit of the United States government.
Since the FDIC was established in 1933, no depositor has lost a penny of FDIC-insured funds.
FDIC insurance covers all deposit accounts, including:
Checking accounts
Savings accounts
Money market deposit accounts
Certificates of deposit
FDIC insurance does not cover other financial products and services that banks may offer, such as stocks, bonds, mutual funds, life insurance policies, annuities or securities.
The standard insurance amount is
$250,000 per depositor, per insured bank, for each account ownership category.
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Before the last bank run a few years ago, that amount was only $100,000 per depositor.
And many people that had more than that did completely lose everything over that amount when the banks defaulted.
It's funny how the press never mentions those people.
Also anything in a safety deposit box has
0 insurance protection.
If you are fortunate enough to have that kind of funds, don't keep more than
$250,000 with 1 bank, as those weasels find a way to justify only paying out on 1 account , and somehow exclude your other accounts, paranoid yes , but did it happen to some people during the last bank closures, sadly yes it did.
FYI:
This one line always make me Laugh!
FDIC insurance is backed by the full faith and credit of the United States government. How can anyone have faith in someone that is almost ~19 Trillion Dollars in Debt.The US Credit Card should have been cut up decades ago, default is not an IF, but a When!
http://www.usdebtclock.org/ZEIT has no Debt build in , you either have some or you don't.
So just know that buying 1 million
ZEIT for $5 won't last forever,
when the big one hits , $1 million dollars might not be able to buy 1
ZEIT.
Poll
