FBI coins could sell for a premium

[wonkytonky]

i can imagine.. some exchanges with lower luiquidity would be interested..    if they find an investor to buy coins  and use them as market maker ....   

[seleme]

Some people don't understand that the auction is 'dedicated'. There's a 16th June deadline for the 200k$ deposit.
Only a limited number of people with deep pockets will get to participate in the auction. And they'll only get the coins after they transfer the whole sum, sometime in early July.
But they have to place the bids on the 27th June, so they have to bid well below market price in case the market drops further in the meantime.

You're silly if you think people ready to buy these will bitch around 15-20$. They get lot of coins on fixed price, without slippage that would make price go up hundreds of dollars on the exchange.

[piramida]

Some people don't understand that the auction is 'dedicated'. There's a 16th June deadline for the 200k$ deposit.
Only a limited number of people with deep pockets will get to participate in the auction. And they'll only get the coins after they transfer the whole sum, sometime in early July.
But they have to place the bids on the 27th June, so they have to bid well below market price in case the market drops further in the meantime.

You're silly if you think people ready to buy these will bitch around 15-20$. They get lot of coins on fixed price, without slippage that would make price go up hundreds of dollars on the exchange.

exactly. these days there are not many opportunities to move 10 mil into bitcoin. you surely can wire that money to a non-US licensed slovenian exchange and hope they don't close the next day, then buy that coins causing a mini-rally from $600 to $900, then take a printout of three thousand little buys that happened on that exchange and give that to your accountant for tax purposes

OR you could buy them for $700 a piece by wiring money to US marshals, get a single sale and a stamped proof of purchase.

Hmm tough choice what would I do what would I do...

[Joe200]

I think it's likely there will be a slight premium. Buying 30k coins on exchanges is doable but not easy. It would probably take a month to do so. Plus, all the risks with large sums of money. Whales have been waiting for this. Everyone knows that the price is going up now. As long as there are enough bidders, we will see a premium.

[piramida]

As long as there are enough bidders, we will see a premium.

enough = 2

[theecoinomist]

There is an implicit guarantee that the coins to be sold are legal and without any sort of taint, at least in the eyes of the Feds. 

Hmm..

[alexeft]

Some people don't understand that the auction is 'dedicated'. There's a 16th June deadline for the 200k$ deposit.
Only a limited number of people with deep pockets will get to participate in the auction. And they'll only get the coins after they transfer the whole sum, sometime in early July.
But they have to place the bids on the 27th June, so they have to bid well below market price in case the market drops further in the meantime.

You're silly if you think people ready to buy these will bitch around 15-20$. They get lot of coins on fixed price, without slippage that would make price go up hundreds of dollars on the exchange.

exactly. these days there are not many opportunities to move 10 mil into bitcoin. you surely can wire that money to a non-US licensed slovenian exchange and hope they don't close the next day, then buy that coins causing a mini-rally from $600 to $900, then take a printout of three thousand little buys that happened on that exchange and give that to your accountant for tax purposes

OR you could buy them for $700 a piece by wiring money to US marshals, get a single sale and a stamped proof of purchase.

Hmm tough choice what would I do what would I do...

Good thought! 

[Jamie_Boulder]

Unlikely, there's more of a chance for them to sell at a heavy discount (if they all go to 1 buyer) and then the merchant would be responsible for selling them off slowly to obtain a profit.

[master-P]

How do their other auctions work? Do they usually set a minimum bid price? I don't think the coins will sell for a premium, but they won't go for much less than the exchange rate.

[Thylacine]

The auction is a giant stamp of approval, if not for bitcoin as a whole, than at least for the particular set of coins at auction.

I don't get this logic. It's neither approval or disapproval. It's just selling property. If the government sells a seized Ferrari - does that mean they implicitly approve of Ferrari?

[criptix]

The auction is a giant stamp of approval, if not for bitcoin as a whole, than at least for the particular set of coins at auction.

I don't get this logic. It's neither approval or disapproval. It's just selling property. If the government sells a seized Ferrari - does that mean they implicitly approve of Ferrari?

u should rather use this example:

would the gov sell seized drugs?

[Mythul]

So did they dump the coins already?

[phelix]

For large, conservative investors, this is the first chance to buy bitcoins directly from the U.S. Government.  There is an implicit guarantee that the coins to be sold are legal and without any sort of taint, at least in the eyes of the Feds.  Also, to many such investors, the U.S. Gvt is the most trusted trading partner possible.  They are the most reliable organization to trust wiring millions of dollars to.

The auction is a giant stamp of approval, if not for bitcoin as a whole, than at least for the particular set of coins at auction.

+1 Interesting point!

[zimmah]

I think the FEDs selling coins is not all that bad anyway.
Yes, there's a little more coins to go around now (instead of assuming the fed coins 'lost forever') but at least those coins could reach an audience the normal coins do not yet reach.

[bitcoinsrus]

I think the FEDs selling coins is not all that bad anyway.
Yes, there's a little more coins to go around now (instead of assuming the fed coins 'lost forever') but at least those coins could reach an audience the normal coins do not yet reach.

Yea, also, it is unlikely the buyer would just dump on a single exchange.

[Este Nuno]

I think that the price that these coins sell for is going to say a lot about the current state of bitcoin.

If they go for much over spot it's a very good sign.

The deeper the discount the more I feel that would be a bad sign since there is no safer way to purchase a large amount of coins. And if the demand isn't there for this type of transaction then it's a bad sign.

[Teppino]

Can another auction be made straight after this one or there has to be a delay between?

[ShakyhandsBTCer]

There is an implicit guarantee that the coins to be sold are legal and without any sort of taint, at least in the eyes of the Feds

I doubt any investors will worry about this. Investors trying to buy bitcoin are likely more concerned about keeping their coins safe. This is why a BTC EFT will likely sell for a premium.

[gentlemand]

Anyone expecting some Ebay sniping while the markets dance around in front of a live feed is going to be a bit disappointed.

It's sealed bids and it's quite likely they won't disclose the price unless there's a successful freedom of information request. We may remain in the dark about the price achieved for a long time afterwards, perhaps always.

[Mythul]

Lets hope this sell will end well so we can finally move on...