Re:Despite S.E.C. Warning, Wave of Initial Coin Offerings Grows
by problems on Tuesday August 08, 2017 @02:04PM
(#14960657)
Why would the exchange run into problems in such a case? Some are certainly more reputable than others, but for the most part there's no reason to worry there.
Re:Despite S.E.C. Warning, Wave of Initial Coin Offerings Grows
by joosters on Tuesday August 08, 2017 @04:55PM
(#14962609)
As well as the reasons mentioned by others, Bitfinex in particular is an exchange that is in deep financial difficulties. It has no working banking partners for anyone to withdraw USD, and their pseudo-$ currency 'Tether-USD' is rumoured to be massively over-issued to cover their account shortfalls.
Re:Despite S.E.C. Warning, Wave of Initial Coin Offerings Grows
by grey-area on Tuesday August 08, 2017 @02:42PM
(#14961100)
Questions around the solvency of bitfinex have been circulating for years. Do they even allow USD withdrawals at present? Their actions are weirdly reminiscent of the long fall of mt gox.
Re:Despite S.E.C. Warning, Wave of Initial Coin Offerings Grows
by zwily on Tuesday August 08, 2017 @02:12PM
(#14960760)
Typically during BTC crashes even the best exchanges struggle to keep up with the load of people selling.
Re:Despite S.E.C. Warning, Wave of Initial Coin Offerings Grows
by JumpCrisscross on Tuesday August 08, 2017 @02:11PM
(#14960750)
> there's no reason to worry there
There are failure modes that have plagued exchanges for centuries. Namely, when things go down (a) lots of activity happens in a short period of time, often leading to administration and technical failures, and (b) lots of people lose money which presages them (i) refusing to pony up and (ii) suing.
There is a horrible counterparty correlation in this trade. If Bitcoin goes up, you're out your short and lose lots of money. If Bitcoin crashes, the exchange runs into problems and you probably lose your original investment. Balanced against those is the limited profit potential from a marginal drop in the price of Bitcoin.