Some one please translate this article in Chinese and hand it to the Hong Kong media please
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!
news link:
http://www.scmp.com/news/hong-kong/article/1707565/investors-fear-hk3b-losses-closure-bitcoin-trading-companyhttp://money.udn.com/storypage.php?sub_id=5603&art_id=696371http://cablenews.i-cable.com/webapps/news_video/index.php?news_id=451648....
These news are
ALL USING THE FAKE NUMBERMost 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.
