How is your Cryptopia's low-cap coin dealing with the Cryptopia's liquidators?

[Raja_MBZ]

It's interesting; many low-cap coins are afraid of possible Crytopia's stash dumping, which can possibly take the value of their project to zero (at least for a little while) because of lack of buy orders across other exchanges.

Here are a few examples of how these low-cap projects are currently avoiding the possible liquidations of their coins (by Cryptopia's liquidators) across the remaining exchanges:

-HUSH:

While migrating to KMD-based chain from ZEC-based chain, they airdropped the new coins across all the addresses except for Cryptopia's address.

-PIRL:

Simple hard-fork that took away Cryptopia's coins from them.

-XBY:

Took the same decision as PIRL.

How's your Cryptopia's low-cap project handling this situation?

[1715157771]

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[1715157771]

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[Raja_MBZ]

-LUXCoin update:

[timerland]

It's interesting; many low-cap coins are afraid of possible Crytopia's stash dumping, which can possibly take the value of their project to zero (at least for a little while) because of lack of buy orders across other exchanges.

Here are a few examples of how these low-cap projects are currently avoiding the possible liquidations of their coins (by Cryptopia's liquidators) across the remaining exchanges:

-HUSH:

While migrating to KMD-based chain from ZEC-based chain, they airdropped the new coins across all the addresses except for Cryptopia's address.

-PIRL:

Simple hard-fork that took away Cryptopia's coins from them.

-XBY:

Took the same decision as PIRL.

How's your Cryptopia's low-cap project handling this situation?

This is quite an interesting scenario.

What these projects are doing is debatable, because it essentially shows that their operations are still somewhat centralized. Sure, they may be saving their projects in the short term from a dump, but in the long run it does no good for their project's image. I'm sure anyone with a vested stake at Cryptopia would hate to see this happen as well.

Also, even if there was to be a large scale dump by Cryptopia to recoup losses and reimburse people, how would they do so effectively when there is only extremely limited liquidity for these coins to begin with since their market caps are so damn low?  That's what I don't get.

[DonQuijote]

Btc price at hacks day was 3.6k and now is 11.3k, they can sell only a small btc now and give the $ equivalent on hacks day, they have more money now. They dont need "liquidator" with all altcoins

[Raja_MBZ]

~snip~

This is quite an interesting scenario.

What these projects are doing is debatable, because it essentially shows that their operations are still somewhat centralized. Sure, they may be saving their projects in the short term from a dump, but in the long run it does no good for their project's image. I'm sure anyone with a vested stake at Cryptopia would hate to see this happen as well.

Also, even if there was to be a large scale dump by Cryptopia to recoup losses and reimburse people, how would they do so effectively when there is only extremely limited liquidity for these coins to begin with since their market caps are so damn low?  That's what I don't get.

Literally, the whole idea of hiring the liquidators has proved to be stupid. Cryptopia founders should've at least thought a little about this scenario, and just returned the unhacked coins or tokens.

However, I'm involved in a few Discord channels of those low-cap coins, and seriously, nobody in those channels gives a f*** about "centralization". All they care about is that their coins order books remain out of Cryptopia's liquidators' reach. In the last few months, I've seen polls getting the vote of about 95% "yes, fork the chain!" and just 5% "no, muh decentralization!"

Btc price at hacks day was 3.6k and now is 11.3k, they can sell only a small btc now and give the $ equivalent on hacks day, they have more money now. They dont need "liquidator" with all altcoins

That's a nice point but unfortunately, the major amount of coins that were involved in the hack, as far as I remember, included bitcoin, ethereum, and litecoin.

[Timelord2067]

Interesting point you make - am following thread to see where it leads.

[gentlemand]

This is quite an interesting scenario.

It is indeed and one I hadn't really considered before. There are plenty of projects that effectively don't exist outside a tiny number of exchanges. That's the only reason they were created in the first place anyway.

Actually cutting those coins out of existence sums up the entire ethos of most alts - fully centralised dollar grabs.

How do they return coins to those who had Cryptopia balances? That's going to be the vast majority of users in most cases.

[Timelord2067]

This is quite an interesting scenario.

It is indeed and one I hadn't really considered before. There are plenty of projects that effectively don't exist outside a tiny number of exchanges. That's the only reason they were created in the first place anyway.

Actually cutting those coins out of existence sums up the entire ethos of most alts - fully centralised dollar grabs.

How do they return coins to those who had Cryptopia balances? That's going to be the vast majority of users in most cases.

The sale of the Cryptsy wallets was done via auctions and quite a few of the wallets were sold "as-is" without any guarantee of their contents.  The major ones (BTC/LTC etc) attracted attention while the lesser traded alts were snapped up - some were then dumped on the markets, others were on-sold or even given back to the devs in some cases.

[Raja_MBZ]

This is quite an interesting scenario.

It is indeed and one I hadn't really considered before. There are plenty of projects that effectively don't exist outside a tiny number of exchanges. That's the only reason they were created in the first place anyway.

Actually cutting those coins out of existence sums up the entire ethos of most alts - fully centralised dollar grabs.

How do they return coins to those who had Cryptopia balances? That's going to be the vast majority of users in most cases.

In the Telegram and Discord channels of these alts, I don't see any plans of returning the coins to those who had any balance at Cryptopia. The victims are being ignored completely by the low-cap projects that I'm following (includes XBY/HUSH/PIRL/LUX), and the strange part is, I don't see many people screaming about their Cryptopia losses either. 

[gentlemand]

In the Telegram and Discord channels of these alts, I don't see any plans of returning the coins to those who had any balance at Cryptopia. The victims are being ignored completely by the low-cap projects that I'm following (includes XBY/HUSH/PIRL/LUX), and the strange part is, I don't see many people screaming about their Cryptopia losses either.  

Considering the only reason people have shitcoins like this is to make more dollars it stands to reason that the majority will be in exchanges like Cryptopia. Only developers and weirdos will have them in real wallets.

If that's how it works then the developers have just fucked them and they're expecting people to buy their coins from them again? They've just amputated and discarded pretty much their entire user base. Weird.

[Raja_MBZ]

In the Telegram and Discord channels of these alts, I don't see any plans of returning the coins to those who had any balance at Cryptopia. The victims are being ignored completely by the low-cap projects that I'm following (includes XBY/HUSH/PIRL/LUX), and the strange part is, I don't see many people screaming about their Cryptopia losses either.  

Considering the only reason people have shitcoins like this is to make more dollars it stands to reason that the majority will be in exchanges like Cryptopia. Only developers and weirdos will have them in real wallets.

If that's how it works then the developers have just fucked them and they're expecting people to buy their coins from them again? They've just amputated and discarded pretty much their entire user base. Weird.

"the developers have just fucked them and they're expecting people to buy their coins from them again"

Hmmm. People are already buying their coins from them again through exchanges like Stex, Graviex, Txbit, etc.

These alts are pure gamble TBH.

Actually cutting those coins out of existence sums up the entire ethos of most alts - fully centralised dollar grabs.

So true.

[xtraelv]

Under NZ law crypto is considered "property".

.Is cryptocurrency treated as a foreign currency for tax purposes?

No. For tax purposes, cryptocurrency is property, not currency. This means foreign currency gain or loss provisions do not apply.

https://www.classic.ird.govt.nz/income-tax-individual/cryptocurrency-qa.html

The liquidator has indicated that they are still seeking further legal guidance.

Currently account holders are classed separately from creditors. This is because it is quite possible that they will class it as "identifiable property held in trust".

It is my view that it is likely that they will attempt to return (or allow the withdrawal) of the Crypto assets to the account owners.

Source: https://officialdapscoin.com/daps-legal-assistance-cryptopia-liquidation/

[Raja_MBZ]

Under NZ law crypto is considered "property".

.Is cryptocurrency treated as a foreign currency for tax purposes?

No. For tax purposes, cryptocurrency is property, not currency. This means foreign currency gain or loss provisions do not apply.

https://www.classic.ird.govt.nz/income-tax-individual/cryptocurrency-qa.html

The liquidator has indicated that they are still seeking further legal guidance.

Currently account holders are classed separately from creditors. This is because it is quite possible that they will class it as "identifiable property held in trust".

It is my view that it is likely that they will attempt to return (or allow the withdrawal) of the Crypto assets to the account owners.

So, the users are going to be able to withdraw their low-cap coins which apparently are on the old chains that are no longer supported by the exchanges (and the dev teams) and aren't on the main/new chains of those coins? This sounds really bad for the account holders.

P.S. I did have 0.1 BTC worth of low-cap alts (HUSH/XDNA/LUX/PIRL/XBY/etc) at Topia as well, so yeah, I'm one of these account holders too.