BFX (BFX) price, charts, market cap, and other metrics

Understanding Tether: Why it accounts for a substantial part of the crypto market cap and why its the #1 outstanding issue in crypto markets today

In this post I will go in-depth on:
  1. How Tether got to be what it is today
  2. Why Tether's market cap is a lot more than 0.5% of the total market cap for crypto you see on CoinMarketCap
  3. Tether printing timing
  4. Tether reserves
  5. What could happen to the market if Tether is found to not be backed by reserves
Tether is incredibly important to the cryptocurrency market ecosystem and I've noticed far too few people understand what is going on.
Very little actual discussion of the 2nd biggest crypto by volume happens here and whenever someone starts a discussion they most often got slapped for "FUD". Tether themselves recently hired the major New York based PR firm 5W to spread positive information online and take down critics, I'm sure some of their operatives are probably on Reddit.
But its absolutely critical you understand the risks behind Tether and especially now with the explosion in reserve liability, breakdown in relationship with banks and their auditor and recently announced subpoena.

What exactly is Tether and what happened so far?

Tether is a cryptocurrency asset issued by Tether Limited (incorporated in the British Virgin Islands and a sister company of Bitfinex), on top of the Bitcoin blockchain through the Omni Protocol Layer. It is meant to give people a "stablecoin", for example a merchant who accepts bitcoin but fears its volatility could shift bitcoin into tether, which can be easier to do than exchanging bitcoin for dollars. Recently they've also added an Ethereum-based ERC20 token. Tether Ltd claims that each one of the tokens issued is backed by actual US dollar (and more recently Euro) reserves. The idea is that when a business partner deposits US dollars in Tether’s bank account, Tether creates a matching amount of tokens and transfers them to that partner, it is NOT a fractional reserve system.
Tether makes the two following key promises in its whitepaper on which the entire premise is build:
Each tether issued will be backed by the equivalent amount of currency unit (one USDTether equals one dollar).
Professional auditors will regularly verify, sign, and publish our underlying bank balance and financial transfer statement.
Tether is centralized and dependent on your trust of Bitfinex/Tether Limited, and that the people behind it are honest people. For the new entrants to this market it will be greatly beneficial understand the timeline of Tether and their connection to Bitfinex.
A brief timeline:

Most common misconception: Tether is only a small part of the total market cap

One of the most common misconception people have about cryptocurrencies is that the "market cap" amount they see on CoinMarketCap.com is actually the amount of money that is invested in each coin.
I often hear people online dismiss any issue with tether by simply claiming its not big enough to cause any effect, saying "Well Tether is only $2.2 billion on CoinMarketCap and the market is 400 billion, its only 0.5% of the market".
But this misunderstands what market capitalization for cryptocurrency is, and just how different the market cap for Tether is to every other token. The market cap is simply the last trade price times the circulating supply. It doesn't take into account the order book depth at all. The majority of Bitcoin (and most coins) are held by those who either mined or purchased for a very low price early on and simply held on as very small portions of the total supply was rapidly bid up to their current price.
An increase in market cap of X does NOT represent an inflow of X dollars invested, not even close. A 400 billion dollar market cap for crypto does NOT mean that there is 400 billion dollars underwriting the assets. Meanwhile a 2 billion dollar Tether market cap means there should be exactly $2 billion backing up the asset.
Nobody can tell for sure exactly how much money has been invested in cryptocurrency market, but analysts from JPMorgan found that there was only net inflow of $6 billion fiat that resulted in $300 billion market cap at the time. This gives us a roughly 50:1 ratio of market cap to fiat inflow. Prominent crypto evangelist Julian Hosp gives the following estimate: "For a cryptocurrency to have a market cap of $1 billion, maybe only $50 million actually moved into the cryptocurrency."
For Tether however the market cap is simply the outstanding supply, 2.2 billion USDT is actually equal to 2.2 billion USD. In order to get $50 USDT you have to deposit $50 real U.S. dollars and then 50 completely new tokens will be issued, which never existed before on the market.
What is also often ignored is that Bitfinex allows margin trading, at a 3.3x leverage. Bitfinexed did an excellent analysis on how tether is entering Bitfinex to fund margin positions
There are $2.2 billion in Tether outstanding and the current market cap of the entire market is $400 billion according to CoinMarketCap. You can actually calculate Tether as a % of total fiat invested in the market according to the JP Morgan estimate, the following table outlines for a scenario of no margin lending and 15/25% of tether being on a 3.3x leverage margin account:
Fiat Inflow/Market Cap Ratio Tether as % of total market (no margin) Tether as % of total market (15% on margin) Tether as % of total market (25% on margin)
JP Morgan estimate (50:1) 27.5 % 36.9 % 43.3 %
Even without any margin lending Tether is underwriting the worth of about 27.5% of the cryptocurrency market, and if we assume only 25% was leveraged out at 3.3x on margin we have a whole 43% of the market cap being driven by Tether inflow.
A much better indicator on CoinMarketCap of just how influential Tether is actually the volume, its currently the 2nd biggest cryptocurrency by volume and there are even days where its volume exceeds its market cap.
What this all means is that not only is the market cap for cryptocurrencies drastically overestimating the amount of actual fiat capital that is underwriting those assets, but a substantial portion of the entire market cap is being derived from the value of Tether's market cap rather than real money.
Its incredibly important that more new investors realize that Tether isn't a side issue or a minor cog in the machine, but one of the core underlying mechanisms on which the entire market worth is built. Ensuring that whoever controls this stablecoin is honest and transparent is absolutely critical to the health of the market.

Two main concerns with Tether

The primary concerns with Tether can be split into two categories:
  1. Tether issuance timing - Does Tether Ltd issue USDT organically or is it timed to stop downward selling pressure?
  2. Reserves - Does Tether Ltd actually have the fiat reserves at a 1:1 ratio, and why is there still no audit or third party guarantee of this?

Does Tether print USDT to prop up Bitcoin and other cryptocurrencies?

In the last 3 months the amount of USDT has nearly quadrupled, with nearly a billion being printed in January alone. Some people have found the timing of the most recent batch of Tether as highly suspect because it seemed to coincide with Bitcoin's price being propped up.
https://www.nytimes.com/2018/01/31/technology/bitfinex-bitcoin-price.html
This was recently analyzed statistically:
Author’s opinion - it is highly unlikely that Tether is growing through any organic business process, rather that they are printing in response to market conditions.
Tether printing moves the market appreciably; 48.8% of BTC’s price rise in the period studied occurred in the two-hour periods following the arrival of 91 different Tether grants to the Bitfinex wallet.
Bitfinex withdrawal/deposit statistics are unusual and would give rise to further scrutiny in a typical accounting environment.
https://www.tetherreport.com
I'm still undecided on this and I would love to see more statistical analysis done, because the price of Bitcoin is so volatile while Tether printing only happens in large batches. Simply looking at the Bitcoin price graph over the last 3 months and then the Tether printing its pretty clear there is a relationship but it doesn't seem to hold over longer periods.
Ultimately to me this timing isn't that much of an issue, as long Tether is backed by US dollars. If Bitfinex was timing the prints then it accounts to not much more than an organized pumping scheme, which isn't a fundamental problem. The much more serious concern is whether those buy order are being conducted on the faith of fictitious dollars that don't exist, regardless of when those buy orders occur.

Didn't Tether release an audit in September?

Some online posters have recently tried to spread the notion that Tether has actually been audited by Friedman LLP and that a report was released in September 2017. That was actually just a consulting engagement, which you can read here:
https://tether.to/wp-content/uploads/2017/09/Final-Tether-Consulting-Report-9-15-17_Redacted.pdf
They clearly state that:
This engagement does not contemplate tests of accounting records or the performance of other procedures performed in an audit or attest engagement. Our procedures performed are not for the purpose of providing assurance...In addition, our services do not include determination of compliance with laws and regulations in any jurisdiction.
They state right from the beginning that this is a consultancy job (not an audit), and that its not meant to be assurance to third parties. Doing a consultancy job is just doing a task asked by your customer. In a consultancy job you take information as true from the client, and you have no mandate to verify whether your customer's claims are true or not. The way they checked is simply asking Tether to provide them the information:
All inquiries made through the consulting process have been directed towards, and the data obtained from, the Client and personnel responsible for maintaining such information.
Tether provided a screenshots of twp bank balances. One of these is in the name of Tether Limited, and while the other is a personal account of an individual who Tether Limited claims has a trust agreement with them:
As of September 15, 2017, the bank held $60,919,810 in an account in the name of an in individual for the benefit of Tether Limited. FLPP obtained an engagement letter for an interim settlement plan between that individual and Tether Limited and that according to Tether Limited, is the relevant agreement with the trustee. FLLP did not evaluate the substance of the letter and makes no representation about its legality.
Even worse is that later on in Note 1, they clearly claim that there is no actual evidence that this engagement letter or trust has any legal merit:
Note 1: FLLP makes no representations about sufficiency or enforceability of any trust agreement between the trustee and the Client
Essentially what this is saying is that the trust agreement may not even be worth the paper it’s printed on.
And most importantly… Note 2:
FLLP did not evaluate the terms of the above bank accounts and makes no representations about the clients ability to access funds from the accounts or whether the funds are committed for purposes other than Tether token redemptions
Basically Tether gave them a name of an individual with $60 million in their account according to a screenshot, Tether then gave them a letter saying that there is a trust agreement between this individual and Tether Limited. They also have account with $382 million but no guarantee that this account holds to any lien or other commitments, or that it can be accessed.
Currently Tether has 2.2 billion USDT outstanding and we have absolutely no idea whether this is actually backed by anything, and the long promised audit is still outstanding.

What happens if its revealed that Tether doesn't have its US dollar reserves?

According to Thomas Glucksmann, head of business development at Gatecoin: "If a tether debacle unfolds, it will likely cause quite a devastating ripple effect across many of the exchanges that see most of their volumes traded against the supposedly USD-backed cryptocurrency."
According to Nicholas Weaver, a senior researcher at the International Computer Science Institute at Berkeley: "You could see a spike in prices in tether-only bitcoin exchanges. So, on those exchanges only you will see a run up in price compared to the bitcoin exchanges that actually work with actually money. So you would see a huge price diverge as people see that only way they can turn tether into real money is to buy other cryptocurrency then move to another exchange. That is a bank run."
I definitely see the crypto equivalent of a bank run, as people actually try to secure their gains an realize that this money doesn't actually exist within the system:
If traders lose confidence in it and its value starts to drop, “people will run for the door,” says Carlson, the former Wall Street trader. If Tether can’t meet all its customers’ demand for dollars (and its Terms of Service suggest that in many cases it won’t even try), tether holders will try to snap up other cryptocurrencies instead, temporarily causing prices for those currencies to soar. With tether’s role as an inter-exchange facilitator compromised, investors might lose faith in cryptocurrencies more generally. “At the end of the day, people would be losing substantial sums, and in the long term this would be very bad for cryptocurrencies,” says Emin Gun Sirer, a Cornell professor and co-director of its Initiative for Cryptocurrencies and Smart Contracts.
Another concern is that Bitfinex might simply shut down, pocketing the bitcoins it has allegedly been stockpiling. Because people who trade on Bitfinex allow the exchange to hold their money while they speculate, these traders could face substantial losses. “The exchanges are like unregulated banks and could run off with everyone’s money,” says Tony Arcieri, a former Square employee turned entrepreneur trying to build a legally regulated exchange.
https://www.wired.com/story/why-tethers-collapse-would-be-bad-for-cryptocurrencies/
The way I see it, this would be how it plays out if Tether collapses:
  1. Tether-enabled exchanges will see a massive spike in Bitcoin and cryptocurrency prices as everyone leaves Tether. Noobs in these exchanges will think they are now millionaires until they realize they are rich in tethers but poor in dollars.
  2. Exchanges that have not integrated Tether will experienced large drops in Bitcoin and alts as experienced investors flee crypto into USD.
  3. There will be a flight of Bitcoin from Tether-integrated exchanges to non-Tether exchanges with fiat off-ramps. Exchanges running small fractional reserves will be exposed, further increasing calls for greater reserves requirements.
  4. The exchanges might slam the doors shut on withdrawals.
  5. Many exchanges that own large balances of Tether, especially Bitfinex, will likely become insolvent.
  6. There will be lawsuits flying everywhere and with Tether Limited being incorporated on a Carribean Island whose solvency and bankruptcy laws will likely ensure they don't ever get much back. This could take years and potentially push away new investors from entering the space.

Conclusion

We can't be 100% completely sure that Tether is a scam, but its so laiden with red flags that at this point I would call it the biggest systematic risk in the crypto space. Its bigger than any nation's potential regulatory steps because it cuts right into the issue of trust across the entire ecosystem.
Ultimately Tether is centralizing one of the very core mechanics of the cryptocurrency markets and asking you to trust one party to be the safekeeper, and I really see very little reason to trust Bitfinex given their history of lying and screwing over their own customers. I think that Tether initially started as a legit business to facilitate the ease of moving money and avoiding regulations, but somewhere along the lines greed and/or incompetence took over (something that seems common with Bitfinex's previous actions). Right now we're playing proverbial hot potato, and as long as people believe that Tether is worth a dollar everything is fine, but as some point the Emperor will have to step out from hiding and somebody will point out they have no clothes.
In the long term I really hope once Tether collapses we can move on and get the following two implemented which would greatly improve the market for all investors:
  1. Actual USD fiat pairings on the major exchanges for the major currencies
  2. Regulatory rules on exchange reserve requirements
I had watched the Bitconnect people insist for the last 2 years that everything about Bitconnect made perfect sense because they were getting paid daily. The scam works until one day it suddenly doesn't.
Tether could still come clean and avoid all of this "FUD" by simply getting a simple review of their banking, they don't even need a full audit. If everything was legit with Tether, it would be incredibly easy to have a segregated bank account with the funds used solely to back up Tether, then have an third party accounting firm simply review the account and a bank reconciliation statement then spend a few hours in contact with the bank to ensure no outstanding liabilities are held on that balance. This is extremely basic stuff, it would take a few hours to set up and wouldn't take a lot of man-hours for a qualified account to do, and yet they don’t do it. Why? Why hire a major PR firm and spend god knows how much money to pay professional PR representatives to attack "FUD" online instead?
I think I know why.
submitted by arsonbunny to CryptoCurrency [link] [comments]

BitFinex made a big error in funding calculation on my account. Please help.

Hello Guys, Today I woke up and noticed a big amount is deducted from my BFX account (0.14BTC), I checked history and noticed it says it is funding cost for a position ! My only position for last two days has been a 2.5BTC short on BTCUSD while my margin wallet balance has been more than 2.85BTC. meaning I have had enough BTC in my account to cover my short and no funding has been required at all ! I contacted BFX support immediately and they said it has been the funding cost for my 2.5BTC position ! Thats a 5.6% funding rate assuming funding is required at all ! The current BTC funding rate on BFX is 0.016% ! Also yesterday, they have charged 0.00003822BTC for funding the same position, how can it jump to 0.14BTC the next day ? I replied back and explained it is impossible, but they have not replied back for 3 hours now. :( Here are the screenshots of my account : http://imgur.com/a/yJccS and screenshot of BFX support response : http://imgur.com/a/XIyro Does anyone know someone in BitFinex I can contact ? This should be a bug is their software.
UPDATE : after 6 hours they forwarded the issue to admins. I hope BFX is not screwing everyone. check your balances precisely.
UPDATE 2 : BFX confirmed the error in calculating the funding cost and said it will be reimbursed shortly. (still not reimbursed after 2 hours)
UPDATE 3 : BFX reimbursed the whole 0.14BTC, I have not received any explanation on why it had happened. my advice : Check your accounts, it could have happened to you too.
More evidence : https://imgur.com/JU9S89M
submitted by fifthelement80 to BitcoinMarkets [link] [comments]

Beginner’s Guide to Exchanges – Part 1

Beginner’s Guide to Exchanges – Part 1

Hola Compadres! It is me u/poop_dragon here with another guide. Today I would like to run through a list of ETH exchanges. This is just Part 1 of this list, and it covers established exchanges. Soon I will post Part 2 and 3 which will go into some other types of exchanges (derivative markets, coin converters, decentralized, and foreign exchanges) Side note, I have given rating to these exchanges based on some comparisons, news, and information which I have found online. Recently, EVERY exchange has been slow/unresponsive in their customer service due to the huge influx of new users. My intention is to help educate new users about the exchanges available. I am not trying to discredit, advertise, pump up, or damage reputations. If you feel something is inaccurate, please respectfully bring it up in the comments. I will be editing as we go. Last thing of note, I have only included the lowest level trading tier to calculate trading fees, which assumes the highest rates. Most exchanges offer lower fees for bigger orders, but I have gone with the assumption that everyone here is not dropping whale amounts of cash.

00 – Concepts and Definitions

01 –Digital Exchanges

Poloniex

Exchange Type Maker Taker
All Currencies .15% .25%
Feature Details
2FA Google Authenticator Available
Wallet Security ‘Majority’ of Funds in cold storage
Personal Information Encrypted and Stored Off-Site
Tier Level Name Email DOB Phone Address Official ID Bank Info KYC Limits
Level 1 X X $2,000 USD Daily Withdrawal Limit
Level 2 X X X X X X $7,000 USD Daily Withdrawal Limit
Level 3 X X X X X X $25,000 USD Daily Withdrawal Limit
Level 4 X X X X X X X X >$25,000 USD Daily Withdrawal Limit
What is a KYC? It stands for Know Your Customer Documentation. This varies between exchanges. However, like most things, if you have to ask, you probably can’t afford it.

Bittrex

Exchange Type Maker Taker
All Currencies .25% .25%
Feature Details
2FA Google Authenticator Available
Wallet Security Multi-stage wallet Majority’ of Funds in cold storage
Personal Information IP Whitelisting restricts trading from new addresses
Tier Level Name Email DOB Phone Address Official ID Bank Info KYC Limits
Basic X X X 3 BTC or less daily
Enhanced X X X X X X 100 BTC or less daily

02– Fiat Exchanges - USA

Coinbase (GDAX)

Country Credit/Debit Linked Bank Account Wire Transfer
Australia 3.99% - -
Canada 3.99% - -
Europe 3.99% 1.49% SEPA- Free (€0.15)
Singapore 3.99% 1.49% -
UK 3.99% - SEPA Free (€0.15)
US 3.99% 1.49% $10 Deposit / $25 With / ACH Free
Exchange Type Maker Taker
ETH/FIAT 0% .30%
ETH/BTC 0% .30%
Tier Level Name Email DOB Phone Address Official ID Bank Info KYC Limits
Level 1 X X X
Level 2 X X X X X Crypto Only
Level 3 X X X X X X X Fiat Enabled
Level 4 X X X X X X X X Higher Fiat Limits
Feature Details
2FA Google Authenticator, Authy, SMS
Wallet Security 98% Assets in Cold Storage
Personal Information 3rd Party Verified, Secured, Stored Offline
Digital Currency Insurance Fully Insured by Lloyd’s of London
Fiat Insurance Up to $250,000 by FDIC
Bug Bounty Multiple bounties up to $10,000

Kraken

Country Linked Bank Account Wire Transfer
EUR Free SEPA €5-10 (€0.09 Withdrawal)
US Free SWIFT $10 ($60 Withdrawal)
UK Free SWIFT £10 (£60 Withdrawal)
CAN Free SWIFT Free ($10 Withdrawal)
Exchange Type Maker Taker
ETH/FIAT .16% .26%
ETH/BTC .16% .26%
Tier Level Name Email DOB Phone Address Official ID Bank Info KYC Limits
Level 0 X No Trading Allowed
Level 1 X X X X No Fiat, Unlimited Crypto
Level 2 X X X X Fiat $2,000Day/$10,000Mo
Level 3 X X X X X X Fiat $25,000Day/$200,000Mo
Level 4 X X X X X X X X Fiat $100,000Day/$500,000Mo
Feature Details
2FA Google Authenticator, Master Key Available
Wallet Security Majority Assets in Cold Storage
Personal Information PGP Encrypted Emails, Global Settings Lock
Digital Currency Insurance Maintain Full Reserves
Bug Bounty Multiple bounties

Gemini

Country Linked Bank Account Wire Transfer
USD Free Free
Exchange Type Maker Taker
ETH/ALL .10-.25% .25%
Tier Level Name Email DOB Phone Address Official ID Bank Info KYC Limits
Individual X X X X X X X None - Except for ACH
Feature Details
2FA Google Authenticator, Authy Available
Hot Wallet Security Hot Wallet Hosted by Amazon Web Services
Cold Wallet Stored in 2 tiers of cold and 'cryo' multi-sig storage
Personal Information Encrypted in Transit and Stored Offline
Digital Currency Insurance Fidelity bond by 'top-tier insurance company'
Fiat Insurance Up to $250,000 by FDIC

03– Fiat Exchanges - Hong Kong

Bitfinex

Country Credit/Debit Bank Transfer Express Bank Transfer
ALL - .1% ($20 Minimum) 1% ($20 Minimum)
Exchange Type Maker Taker
ETH/ALL .10% .20%
Tier Level Name Email DOB Phone Address Official ID Bank Info KYC Limits
Individual X X X X X X (2) X X No Stated Limits
Feature Details
2FA Google Authenticator, Twilio Available
Account Security New IP Addresses locked for 24 hours, require verification and detection
System Security Hosted and Backed-up on Linux, protection from DDoS
Personal Information Email encryption with OpenPGP
Wallet Security Only .5% of funds are stored in hot wallets
EDIT : Thank you to u/Ginger_Bearded_Man for the suggestion. Bittrex has been added.
submitted by poop_dragon to ethtrader [link] [comments]

The BFX price jumped because of insider trading, not because of margin trading

Recently, the price of BFX tokens rose about 40% from $0.4 to ~$0.56 in a time frame of approximately 36 hours. The rally started exactly with the announcement that margin trading will be enabled for BFX tokens. It ended with the announcement of the 1% token redemption.
 
Why insider trading?
First thing to notice is that the redemption itself seemed to have no effect on the price at all. When the redemption was announced, price was already up to $0.56 and it didn't rise any higher than that. However, it should have made an impact. Why? The price of the token is solely based on Bitfinex' promise to pay back users. There is no other fundamental value. Every redemption will increase the trust in that promise and should therefore result in a price increase. This is especially the case for the very first redemption. But as we can see, the price jumped before the announcement. This means that at the time of the announcement, the information about the redemption was already incorporated into the price. Someone traded on this information before it was public. The fact that Bitfinex employees are among the largest token holders further supports this scenario.
 
But in order to fully profit from their trades, they had to introduce margin trading for BFX tokens. That way they could leverage their returns, so instead of making a lousy 25%, they entered 3.3x longs to make up to 80% (my calculations included some slippage since I assumed they entered large positions) before selling back into the market. This chart pretty much sums up what happened.
 
Besides, why would they enable margin trading exactly one day before an announcement like this? The only reasonable explanation is insider trading. They could have enabled it somewhen after the announcement, or a week before it. Nope, it was exactly ~40 hours before the redemption, so the token holders in upper management on the one hand had enough time buying, but on the other hand didn't run into risk of being margin called due to the high volatility on BFX tokens. Afterwards, they could blame the newly introduced margin-trading for the price increase.
The reasoning that enabling margin trading results in such a price increase is idiotic by the way. Some upvoted posts on this sub claimed that "because BFX is worthless as collateral, it's an obvious long". This doesn't make any sense. BFX can always and immediately be sold for USD or BTC and withdrawn. Entering a leveraged long on BFX with BFX as collateral is factually equivalent to entering a leverage long on BFX with USD as collateral as those two are exchangeable.
 
TL;DR: Bitfinex employees engaged in insider trading to (once again) scam their token holders.
submitted by 7a11l409b1d3c65 to BitcoinMarkets [link] [comments]

Bitfinex: Arthur Hayes estimates $3.42 million 6 months revenue - "better average employee compensation than Goldman Sachs"

Interesting blog post by Arthur Hayes, CEO of BitMEX.
In the last 6 months, 4.28 million Bitcoin were traded on Bitfinex (Bitcoinity). Assuming they net 0.20% per transaction (since they offer affiliate programs and some market makers trade for free) then we can estimate a top-line revenue of 8,560 XBT. At $400 per Bitcoin, that’s $3.42 million. Bitfinex has between 10 to 20 staff. Bitfinex wants the community to believe that they earn no profit. Or that on average employees make $342,000 per year (assuming 20 employees). That’s a better average employee compensation than Goldman Sachs.
Another interesting analysis:
Bitfinex is afraid of US-pound-me-in-the-ass prison, or a company-ending-fine from one of the many alphabet letter agencies in the US. The most likely scenario that a large amount of US customer funds were not taxed so that the fiction of segregated accounts could be preserved.
https://blog.bitmex.com/youve-been-buttfinessed/
Update
BitMEX updated the blog post
Bitfinex has about 25 employees. Bitfinex wants the community to believe that they earn no profit, or that their average employees make nearly $300,000/yr. That’s better average employee compensation than Goldman Sachs.
Edit: The above section has been amended given new information. BFX appears to have nearly 25 employees. The previous calculations were very rough and did not include overhead, which would reduce salary amounts, but also did not include altcoin or margin funding revenue, which would increase them. Our point – that salaries & overhead are very high or money is being intentionally withheld – still stands.
submitted by lockhedge to BitcoinMarkets [link] [comments]

[uncensored-r/CryptoCurrency] Understanding Tether: Why it accounts for a substantial part of the crypto market cap and why its...

The following post by arsonbunny is being replicated because some comments within the post(but not the post itself) have been openly removed.
The original post can be found(in censored form) at this link:
np.reddit.com/ CryptoCurrency/comments/7xae98
The original post's content was as follows:
In this post I will go in-depth on:
  1. How Tether got to be what it is today
  2. Why Tether's market cap is a lot more than 0.5% of the total market cap for crypto you see on CoinMarketCap
  3. Tether printing timing
  4. Tether reserves
  5. What could happen to the market if Tether is found to not be backed by reserves
Tether is incredibly important to the cryptocurrency market ecosystem and I've noticed far too few people understand what is going on.
Very little actual discussion of the 2nd biggest crypto by volume happens here and whenever someone starts a discussion they most often got slapped for "FUD". Tether themselves recently hired the major New York based PR firm 5W to spread positive information online and take down critics, I'm sure some of their operatives are probably on Reddit.
But its absolutely critical you understand the risks behind Tether and especially now with the explosion in reserve liability, breakdown in relationship with banks and their auditor and recently announced subpoena.

What exactly is Tether and what happened so far?

Tether is a cryptocurrency asset issued by Tether Limited (incorporated in the British Virgin Islands and a sister company of Bitfinex), on top of the Bitcoin blockchain through the Omni Protocol Layer. It is meant to give people a "stablecoin", for example a merchant who accepts bitcoin but fears its volatility could shift bitcoin into tether, which can be easier to do than exchanging bitcoin for dollars. Recently they've also added an Ethereum-based ERC20 token. Tether Ltd claims that each one of the tokens issued is backed by actual US dollar (and more recently Euro) reserves. The idea is that when a business partner deposits US dollars in Tether’s bank account, Tether creates a matching amount of tokens and transfers them to that partner, it is NOT a fractional reserve system.
Tether makes the two following key promises in its whitepaper on which the entire premise is build:
Each tether issued will be backed by the equivalent amount of currency unit (one USDTether equals one dollar).
Professional auditors will regularly verify, sign, and publish our underlying bank balance and financial transfer statement.
Tether is centralized and dependent on your trust of Bitfinex/Tether Limited, and that the people behind it are honest people. For the new entrants to this market it will be greatly beneficial understand the timeline of Tether and their connection to Bitfinex.
A brief timeline:
  • Bitfinex operators Phil Potter and CFO Giancarlo Devasini set up Tether Limited in the British Virgin Islands, but told the public that Bitfinex and Tether are completely separate. Throughout 2015 and 2016, the amount of Tether stays relatively flat.
  • In August 2nd, 2016, the second-largest digital currency exchange heist in history happened, when Bitfinex lost nearly 120,000 bitcoin. Bitfinex never revealed full details of the hack, but BitGo (the security company that had to sign off on the transactions) claims its servers were not breached.
  • Just 4 days after the hack Bitfinex “socializes” its losses from the theft by announcing a 36 percent haircut for almost all of its customers. In return, customers receive BFX tokens, initially valued at $1 each.
  • Two weeks after the hack Bitfinex announces it has hired Ledger Labs, to investigate the theft and perform a financial audit of its cryptocurrency and fiat assets. The public nevers sees the results of the investigation, and months later, Bitfinex admits it never actually hired Ledger Labs to perform an audit to begin with.
  • In May 2017, after long standing calls for an actual audit, Bitfinex hires Friedman LLP to "complete a comprehensive balance sheet audit."
  • November 7, 2017: Leaked documents dubbed “Paradise Papers” reveal Bitfinex and Tether are run by the same individuals.
  • November 19, 2017: Tether is hacked, with 31 million USDT suddenly disappearing. Tether Limited reacts to this by creating a hard fork.
  • December 4, 2017: Right after hiring the PR firm 5W to help improve their image, Bitfinex hires law firm Steptoe & Johnson and threatens legal action against critics.
  • December 6, 2017 - CFTC issues a subpoena to Tether and Bitfinex. This news isn't made public until the end of January.
  • December 21, 2017 : Without making any formal announcement, Bitfinex appears to suddenly close all new account registrations. Those trying to register for a new account are asked for a mysterious referral code, but no referral code seems to exist.
  • After a month of being closed to new registrations, Bitfinex announces it is reopening its doors, but now requires new customers to deposit $10,000 before they can begin trading.
  • Friedman LLP completely cut ties with Tether on January 27, 2017.

Most common misconception: Tether is only a small part of the total market cap

One of the most common misconception people have about cryptocurrencies is that the "market cap" amount they see on CoinMarketCap.com is actually the amount of money that is invested in each coin.
I often hear people online dismiss any issue with tether by simply claiming its not big enough to cause any effect, saying "Well Tether is only $2.2 billion on CoinMarketCap and the market is 400 billion, its only 0.5% of the market".
But this misunderstands what market capitalization for cryptocurrency is, and just how different the market cap for Tether is to every other token. The market cap is simply the last trade price times the circulating supply. It doesn't take into account the order book depth at all. The majority of Bitcoin (and most coins) are held by those who either mined or purchased for a very low price early on and simply held on as very small portions of the total supply was rapidly bid up to their current price.
An increase in market cap of X does NOT represent an inflow of X dollars invested, not even close. A 400 billion dollar market cap for crypto does NOT mean that there is 400 billion dollars underwriting the assets. Meanwhile a 2 billion dollar Tether market cap means there should be exactly $2 billion backing up the asset.
Nobody can tell for sure exactly how much money has been invested in cryptocurrency market, but analysts from JPMorgan found that there was only net inflow of $6 billion fiat that resulted in $300 billion market cap at the time. This gives us a roughly 50:1 ratio of market cap to fiat inflow. Prominent crypto evangelist Julian Hosp gives the following estimate: "For a cryptocurrency to have a market cap of $1 billion, maybe only $50 million actually moved into the cryptocurrency."
For Tether however the market cap is simply the outstanding supply, 2.2 billion USDT is actually equal to 2.2 billion USD. In order to get $50 USDT you have to deposit $50 real U.S. dollars and then 50 completely new tokens will be issued, which never existed before on the market.
What is also often ignored is that Bitfinex allows margin trading, at a 3.3x leverage. Bitfinexed did an excellent analysis on how tether is entering Bitfinex to fund margin positions
There are $2.2 billion in Tether outstanding and the current market cap of the entire market is $400 billion according to CoinMarketCap. You can actually calculate Tether as a % of total fiat invested in the market according to the JP Morgan estimate, the following table outlines for a scenario of no margin lending and 15/25% of tether being on a 3.3x leverage margin account:
Fiat Inflow/Market Cap Ratio Tether as % of total market (no margin) Tether as % of total market (15% on margin) Tether as % of total market (25% on margin)
JP Morgan estimate (50:1) 27.5 % 36.9 % 43.3 %
Even without any margin lending Tether is underwriting the worth of about 27.5% of the cryptocurrency market, and if we assume only 25% was leveraged out at 3.3x on margin we have a whole 43% of the market cap being driven by Tether inflow.
A much better indicator on CoinMarketCap of just how influential Tether is actually the volume, its currently the 2nd biggest cryptocurrency by volume and there are even days where its volume exceeds its market cap.
What this all means is that not only is the market cap for cryptocurrencies drastically overestimating the amount of actual fiat capital that is underwriting those assets, but a substantial portion of the entire market cap is being derived from the value of Tether's market cap rather than real money.
Its incredibly important that more new investors realize that Tether isn't a side issue or a minor cog in the machine, but one of the core underlying mechanisms on which the entire market worth is built. Ensuring that whoever controls this stablecoin is honest and transparent is absolutely critical to the health of the market.

Two main concerns with Tether

The primary concerns with Tether can be split into two categories:
  1. Tether issuance timing - Does Tether Ltd issue USDT organically or is it timed to stop downward selling pressure?
  2. Reserves - Does Tether Ltd actually have the fiat reserves at a 1:1...
submitted by censorship_notifier to noncensored_bitcoin [link] [comments]

BITFINEX???? OPEN YOUR EYES!

Have you ever wondered why you can not find order books and graphs of Bitfinex on BTCUSDT pair on the web?
At present, 2,507,140,814 Theter from Bitfinex have been issued in circulation (or better, by a company created by Bitfinex)
Let's take a few steps back ..
2012 - iFinex, the company that becomes the parent company of Bitfinex and Tether, is founded in Hong Kong.
2013 - Bitfinex incorporates in Hong Kong. Phil Potter runs the company together with CEO Jan Ludovicus van der Velde and CFO Giancarlo Devasini.
July 2014 - Director of the Bitcoin Foundation and former child actor Brock Pierce announces Realcoin a cryptocurrency supported by the value in US dollars. Realcoin is built on Mastercoin (now called Omni), a protocol that works on Bitcoin. Pierce founded the company together with software engineer Craig Sellars and entrepreneur Reeve Collins.
September 2014 - Bitfinex operators Potter and Devasini establish Tether Limited in the British Virgin Islands but tell the public that Bitfinex and Tether are completely separate.
November 20, 2014 - Realcoin rebrands in "Tether", stating that he wants to avoid the association with "altcoins". At the same time, the company announces several partners, including Bitfinex. A few questions if Bitfinex actually bought Realcoin and simply wanted to hide the fact that an exchange was issuing dollarized tokens.
February 25, 2015 - Tether starts trading but the amount of USDT in circulation remains relatively flat throughout 2015 and 2016.
May 22, 2015 [19659002] - Bitfinex loses 1,500 bitcoins, worth $ 400,000 at the time, when its hot wallets, connected directly to the Internet, are hacked. The amount represents 0.06 percent of the company's total holdings. Bitfinex indica will absorb losses.
June 2, 2016 - The United States Futures Trade Commission (CFTC) fines Bitfinex $ 75,000 for the offer of off-exchange financed off-exchange retail products in bitcoins and other cryptocurrencies and for the non-registration as a merchant of a Futures Commission as required by the Commodity Exchange Act. In response, Bitfinex transfers its money from an omnibus account into multi-protected portfolios protected by BitGo.
August 2, 2016 - In the second - the biggest digital currency robber in history at the time, Bitfinex is hacked when a thief manages to escape with nearly 120,000 bitcoins, worth approximately $ 75 million at the moment. Bitfinex never reveals all the details of the hack but BitGo, the security company that had to sign the transactions, states that its servers have not been hacked.
6 August 2016 - Bitfinex "socializes" its losses from theft by announcing a 36 percent cut for almost all of its customers. In return, customers receive BFX tokens, initially valued at $ 1 each. Tokens can be exchanged or used to buy shares in iFinex, Bitfinex's parent company. Since no third-party verification is conducted, it is unclear whether Bitfinex is solvent at this time or simply trying to stay afloat.
September 2016 - Bitfinex announces Ledger Labs, a forensic blockchain company, to investigate the theft and perform a complete financial audit of its cryptocurrency and fiat assets; only public nevers see the results of the survey, and months later, Bitfinex admits that he has never actually hired Ledger Labs to perform an audit to begin with.
October 13, 2016 - Bitfinex allows customers to convert BFX token at a value of $ 1, into equities in iFinex. For many, who had seen the value of their BFX tokens fall well below $ 1 (a Redditor reported the price dropped to $ 0.30), the deal seems too good to be abandoned. Approximately one-third of all BFX tokens are converted from 1: 1 to RRT token.
March 31, 2017 - Wells Fargo, the last bank willing to process Bitfinex transactions, discontinues all services to Bitfinex and Tether, according to court documents in a lawsuit against Bitfinex against Wells Fargo later. Bitfinex is not a direct customer of Wells Fargo but a customer of four Taiwan-based banks that use Wells Fargo as its correspondent bank.
3 April 2017 - Bitfinex announces that it has paid off all the debt incurred in the August hack, redeeming all the dollarized BFX tokens issued during the haircut. BFX trading is stopped and all remaining BFX tokens are destroyed.
April 5, 2017 - Two days after announcing that the debt has been paid, Bitfinex files a lawsuit against Wells Fargo for interrupting his wire transfer. Tether is listed as a plaintiff. In addition to an injunction order, Bitfinex claims more than $ 75,000 in damages.
6 April 2017 - A pseudonym character known as "Bitfinex" debuts online. Start twisting accusing Bitfinex of creating bonds from nothing to pay debts. (In January 2017 only 10 million tether were in circulation, now there are 55 million.
11 April 2017 - Bitfinex and Tether voluntarily reject the case against Wells Fargo. Potter, the director of Bitfinex, admits later that they only hoped to gain time.
17 April 2017 - Following an announcement on cable delays, Bitfinex announces that it has been closed by its main banks in Taiwan. At this point, Bitfinex has lost all links with formal banking services and is being moved between a number of banks in other countries.
May 5, 2017 - After stating that he never actually hired Ledger Labs for an audit, commissioning Bitfinex Friedman LLP to complete a full audit of the financial statements. "A third-party audit is important for all Bitfinex stakeholders, and we are thrilled that Friedman will help us achieve this goal" - - - - - Bitfinex started blogging. His first blog post introduces a character calling "Spoofy." A video shows a trader (Spoofy) who makes a large bitcoin order on Bitfinex just to cancel the order as soon as the price of the bitcoin starts to go up. Mt. Gox, an exchange that managed 70% of all Bitcoin transactions worldwide before going bankrupt in 2014, was also accused of manipulating markets.
November 7, 2017 - leaked documents dubbed "Paradise Papers" reveal Bitfinex and Tether are managed by the same individuals. Until now, Tether and Bitfinex have insisted that the two operations were separate.
November 19, 2017 - Tether is hacked and $ 31 million (equivalent in US dollars) is moved from Tether's treasury portfolio and sent to an unauthorized Bitcoin address. Tether starts a difficult fork to prevent those funds from being spent.
December 1, 2017 - Bitfinex takes over the 5W in New York as a new public relations company.
December 2, 2017 - In a quarterly report, Bitfinex announces that it will no longer serve US customers because it is too expensive to serve them. However, the move, which began in August, follows a US crackdown on the Securities and Exchange Commission (SEC) on tokens generated by initial coin offerings (ICOs) that could be securities.
December 4, 2017 - Bitfinex takes over the Steptoe & Johnson law firm and threatens legal actions against critics. Bitfinex does not specify who exactly could sue, but the individual in question seems to be Bitfinex'ed the blogger who continues to accuse Bitfinex of manipulating markets and printing more cables than it can redeem.
6 December 2017 - The CFTC sends subpoenas to Bitfinex and Tether, Bloomberg Reports. The actual documents are not made public.
December 21, 2017 - Without making any formal announcement, Bitfinex suddenly seems to have closed all new account registrations. Those seeking to register for a new account are required for a mysterious code of reference, but there does not seem to be any reference code.
January 12, 2018 - After a month of closure to new registrations, Bitfinex announces it is reopening its doors, but now requires new customers to deposit $ 10,000 in fiat or cryptocurrency before they can start trading.
January 27, 2018 - Five months after the confirmation of the imminent verification, Tether starts with the Friedman LLP auditor. "Given the extremely detailed procedures that Friedman was undertaking for Tether's relatively straightforward balance sheet, it became clear that an audit would be unattainable within a reasonable time," says Tether from CoinDesk.
January 31, 2018 - In the first month of the year, Tether issues 850 million new tether, more than every month before.
Now 2,507,140,814 Theter....
Thanks to some calculation algorithms we managed to analyze the movements and transactions carried out on Bitfinex in greater detail and we discovered the following:
1) The pumps of the last weeks are initialized through the purchase of BTC made with the USDT exchange
2) BTC pump (due to the numerous existing BOTs, altcoins exchange pairs with BTC and the "enzyme mechanism") stimulates the purchase of altcoins!
3) attained certain price levels (and volume) the altcoins and bitcoins are deflated starting from Bitfinex on the market (the first sales take place on this platform causing a domino effect on other exchanges).
4) emptying takes place in fiat currency !!!!!!!!!
5) Bitfinex is liquidating its BTC: has sold 40,000 BTC in just 14 days (The ghost of Mt.Gox is a cover)! You do not have to believe me, you have to open this link
https://bitinfocharts.com/bitcoin/address/3D2oetdNuZUqQHPJmcMDDHYoqkyNVsFk9r
In practice with this mechanism it is possible to produce a non-existent digital currency (theter = 1 $?????), inflate prices with it and then empty investor's funds (fiat currencies).
Recent investigations (by SEC) on some ICOs could reveal that one or more altcoins were put into circulation by Bitfinex with indirect correlations.
PAY ATTENTION: The authorities are working on it and soon they could block these activities and you could find yourself with a handful of flies in your hand ..
Welcome to the biggest scam scheme in history!
submitted by VintexPlus to Bitcoin [link] [comments]

Bitfinex Platform Changes don't mitigate systemic cascading liquidationm risk, & are as much about PR as they are about reducing risk

Cross posting this from the BitcoinTalk thread as I think the quality of discussion is better here.
TL;DR - The change to not needing swap until you exceed your trading wallet USD balance will actually reduce risk for lenders, but only if the calculation for liquidation prices remains unchanged (and if lenders are paid before traders in case of liquidation). It will however do this at the cost of reducing the demand for swaps by anywhere between 40% to 100%.
BFX, can you also please clarify what effect the changes will have on liquidation prices? I'm going to run through an example to clarify my understanding of all the changes, please correct.
Let's say we have a trader, with the 1000USD and 1BTC in their trading account. BTC is trading for 600 say, so their margin balance is $1600. They have 2.5:1 leverage switched on, so their liquidation price is when their effective margin reaches 13% of their margin.
Their tradeable balance is (note that swap interest is a negative value):
Pre-July 21 calc: leverage * margin balance (in USD) + unrealized profit + unrealized swap - balance spent on any open trading position(s) 2.5 * 1600 + 0 + 0 - 0 = 4000
Post-July 21 calc: leverage * margin balance (in USD) + unrealized profit + unrealized swap - balance spent on any open trading position(s) - value of BTC component of margin balance* 2.5 * 1600 + 0 + 0 - 0 - 600 = 3400
(The BTC value of the margin balance is subtracted from tradable balance because this is treated essentially like taking a BTC 'position' with some of your tradeable balance)
What I call 'effective margin' is margin balance plus unrealized profit plus unrealized swap. At the moment a position is opened it is always = margin balance as there is not yet any profit or swap. When the margin ratio = effective margin/margin balance hits the trigger, (in this case 13%) the trader is liquidated. This is how we calculate liquidation price.
If we assume a simple position of n bitcoins bought at price Pbuy and CUSD USD plus CBTC BTC in the trading account, then Margin ratio equals: ( nP - nPbuy + Iswap + CUSD + PCBTC) / (CUSD + PCBTC)
Liquidation price is when this equals 0.13, so Pliq = (nPbuy - 0.87CUSD - Iswap) / (n + 0.87*CBTC)
Lets say the trader opens a position by buying 5BTC at $600. Their tradeable balance and liquidation prices at the moment the position is opened look like the following:
Pre-July 21 calculation: Tradeable balance = 2.5 * 1600 = 4000 Active swaps = 5 * 600 = 3000 Liquidation price = ( 5600 - 0.871000 - 0 )/( 5 + 0.87*1 ) = $362.86
Post-July 21 calculation: Tradeable balance = 2.5 * 1600 - 600 = 3400 Active swaps = 5 * 600 - 1000 = 2000 Liquidation price = ( 5600 - 0.871000 - 0 )/( 5 + 0.87*1 ) = $362.86
(BFX - Is this new liquidation price calc correct ie it remains the same? Does anything change?)
OK, that's all good, but if the liquidation prices are the same, where does the reduced risk come from? The answer is that this change probably doesn't reduce the risk of a cascading liquidation by much, (assuming that I'm right and the liq. price calc doesn't change) but if it works the way I am assuming then lenders will be more protected because even in the case of a forced liquidation, it will be the trader's money that is put at risk first. Let's see what I mean.
Under the pre July-21 system, a liquidation causing a loss to lenders will occur when the effective margin drops below zero. This is when the loss is equal to the total margin balance, so when
Plosing = (n*Pbuy - (CUSD - Iswap) / (n + CBTC)
This will occur at (5*600 - 1000 - 0)/(5+1) = $333.33. We can see that liquidating the position by selling the 5 bitcoins, plus the 1 bitcoin collateral, will yield 6 * 333.33 = 2000. This plus the 1000 in the trader's wallet will be just enough to pay back the lender their $3000 swap.
OK, what about after July 21? Say price goes to $333.33 and we liquidate. We get the same $2000, and the trader also has the $1000 in his wallet. The lender gets paid back the $2000, and the trader at least still has his $1000 USD collateral too. There's an 'extra' $1000 USD of margin in play here!
In the case that the liquidation price is below this amount, I would assume that the lender takes priority (again BFX need to clarify here!). So this means that the actual price that will cause a loss to lenders post July 21 is when effective margin = negative USD collateral, so: Plosing = (nPbuy - (2CUSD - Iswap) / (n + CBTC)
So yes this change will result in reduced risk for lenders, but it will also mean that demand for swaps to cover the portion of the position that otherwise would be bought with the trading wallet USD balance will vanish. Given that for each individual, their current leverage is bounded between 1 (they are borrowing less than their margin balance) and 2.5, this drop in demand is bounded between 100% and 40%. Obviously most people using the margin trading feature have leverage above 1, so it's unlikely that the drop will be near to 100, but it's also unlikely to be near to 40% either. I would guess between 50 - 60%.
It's also worth noting that this part of the change doesn't affect the likelihood of a cascading flash crash very much. However the change in the treatment of BTC/LTC collateral will have an effect there, by reducing the effective leverage possible for these traders.
I think this change by BFX is as much a PR move as it is a move truly intended to avert systemic risk. The headline 'swaps active' number is going to drop by a huge amount; this is all BFX management really want, cos they hope that then people will stop whinging about it in the forums and making them look bad. Given Giancarlo's response to the completely reasonable thread about there being a BFX credit bubble (he called it FUD and was childishly abusive) I think the real motivations here are clear.
Lender beware.
submitted by mrmrpotatohead to BitcoinMarkets [link] [comments]

WCHangout 24 -- BitFinex -- CFTC, "The Button" Issue, Leverage & Order Type Upgrades (RECORDING)

Here is the recording of the Hangout we just finished with Zane Tackett from BFX concerning the mentioned topics:
https://www.youtube.com/watch?v=eDYcYHhvoTg
Outline of the topics covered:
CFTC
what does all this mean? what can you comment on ? https://www.reddit.com/BitcoinMarkets/comments/3l82c5/email_from_cftc_regarding_bitfinex_trading/ Have you received anything from the CFTC or as far as you know it is just the CFTC contacting their customers…
Platform Upgrades
Downtime & Scheduled Maintenance Zane said.. bitfinex will be having down time for “This Sunday we will be making significant upgrades to our infrastructure.” you also mentioned these upgrades will “ replace our current caching layer and queuing service” .. can you expand on what this means ? - How does this affect the lag users have experienced during periods of high volatility in the past ? Will this also effect.. “the button issue” ?
Swap Payment Calculations Swaps Payment calculation to improve accuracy. You said some people were being over / underpaid.. What happened here.. how did this go on so long.. is it not fixed…
Issues
“The button issue” We know you’ve lost customers and customer confidence because of this..
How can it be that Every single person out there, though no fault of their own (they’re pressing the button and not seeing anything change on the site)... be wrong.. and bitfinex be right ? Surely the customer is always right… and the Customer says.. when I press ‘close’. I want to see it close. Either that. Or that button press fails.. NOT: .. I press close.. It tells me it's done something on a small pop up window.. yet my account balance remains the same… How is it possible that every single customer is wrong ? Its not. Its bitfinex who is wrong here. And the customers have spoken. No one.. is happy about it. Who would be ?
Bitcoinica Code Talk of Bitfinex using the bitcoinica code… Zane has clarified that absolutely zero lines of code from Bitcoinca exist on Bitfinex right now. Do you want to just clarify this ?
2FA sometimes mysteriously stops working I’ve had this issue(flibbr) multiple times and had to have it reset.. Have your hear about this and are you familiar with it ? https://www.reddit.com/BitcoinMarkets/comments/3nb4x8/daily_discussion_saturday_october_03_2015/cvmry4b
Alphapoint ..the integration… is it over ? Dead duck ?
Upgrades we want to see..
API Upgrades.. There's currently been talk about No FIX API.. Websocket API… meaning institutional clients won’t initially be able to use their normal order entry (ie: trading platform) and instead have to go to the website…
3 Mobile App ? Bitstamp has an App.. OKCoin has an app. Mobile us is through the roof and constantly being on the good.. people want and require a native App on their phone like OKCoin.. with charts.. and their orders etc.. Why has this still not been done ?
submitted by BTCVIX to BitcoinMarkets [link] [comments]

WCHangout 21 -- CryptoFacilities -- Insurance, Hedging, Trading (Thursday) 10-11AM Central [-5:00 GMT]

We will be having a Google Hangout with Dr. Tim Schlaefer, Co-founder and CEO of CryptoFacilities Derivatives exchange. The panel is made of traders from WhaleClub TeamSpeak http://www.whaleclub.org/live-stream/ , TradingView Chat, Reddit and IRC #CoinMarkets.
Event Page: https://plus.google.com/events/c07n3btrgmff89a9gcuaihbmcks
YouTube: http://www.youtube.com/watch?v=mHA6fgF5WJ4
Prior Exchange/BTC Trading Related Hangouts: http://www.whaleclub.org/videos-hangouts/
Raw Google Document Outline/Notes
Background
Tell us who you are, your background, and the background of your team.
Are you a trader ? Do you trade BTC/crypto actively ? What products have you used in the past or currently use?
What made you decide founding the company and offering a futures derivative product on BTC was a good idea ?
How do you set yourself apart from the other 4 futures platforms ?
Do you have any VC backing ?
Tell us about your insurance option and why this is important and who do you think this appeals to ? What is Elliptic and why are they special ? How was this relationship formed? What is the rate of insurance that someone has to pay on their account ?
http://www.awesomescreenshot.com/image/410960/b131dfe2ec6d3c31144203d03d9360fe
What are the current KYC/AML requirements?
What is your edge ? How do you plan to challenge the offshore exchanges that currently have a very large majority of the order flow?
Currently it appears you only are offering 4:1 leverage is that correct ? Why so low ? how are you going to compete against the heavy hitters offering 10x 20x ?
For a long Forward position, you need to deposit Initial Margin (IM) of 0.50 bitcoins. This means that if you have 1 bitcoin in your account, you can buy up to 2 Forwards, giving you a total long exposure of 3 bitcoins.
You say 4x leverage but that sounds like 2x ?
How does your margin call system work ? what do you think of socialize loss systems like OKC ? Why do they have all the users ?
What appeal do you have to very active retail traders ?
Any plans to a front week future currently you only have 3 longer dated contracts how do you plan on winning over active retail ?
Index calculation and criteria -- you have some criteria as to how you qualify an exchange -- I notice OKCoin.com BTCUSD fee’ed exchange isn’t on there but LakeBTC is ? I have yet to ever meet anyone to trade on LakeBTC that is based in China as well https://www.lakebtc.com/s/about?locale=en What is the rationale behind this ?
Fees -- not too bad but still higher than OKC because they only charge 0.03% on opening -- it appears you charge both ways
API -- rest API -- yes I know that is what BFX has currently but they are moving toward websocket and ultimately FIX which is the standard of legacy financial institutions -- any thoughts here ? “'while they go a half step forward in having a higher then average standard of encryption of all data sent , they are still using REST which means they are behind the ball in speed and realtime data compared to okcoin....or even coinbase"
UI/UX
http://www.awesomescreenshot.com/image/410952/95b2c39214b7aa3b2cbcf7264b6d70e9
The never ending debate of XBT VS BTC -- XBT just will never grow on me
Any plans to get charts listed on Cryptowatch or TradingView ? why or why not
Why does the formatting of the contract not include the actual expiration date ?
Your combination lock kind of way of doing things is not appealing and hard to easily digest -- I would hate staring at that everyday http://bikereviews.com/wp-content/uploads/2009/12/trek-dreadlocks-resettable-combination-cable-lock.jpg
What kind of order types are you offering ? any plans for icebergs and algos?
Order book is on the opposite side as Time and Sales? why ?
Why does it log me out if I navigate to another page ? at times
submitted by BTCVIX to BitcoinMarkets [link] [comments]

CSO Bitfinex Phil Potter and WhalePool bitcoin traders celebrate BFX Token 100% Payment apr/2017 Trading Tip #6: How To Use The Fibonacci Retracement Tool BFX Mobile Instructions How to Calculate Bitcoin Transaction Size Bitfinex Giancarlo Devasini CFO: Convert your BFX tokens to shares, then sell them to suckers.

Before you Invest see How other Investors are Investing in BFX COIN Price Profit Calculator Investment Returns, Research properly before you put money on BFX COIN Price Profit Calculator Investment Returns because you are responsible for your gains and losses. Get BFX COIN Price Profit Calculator Investment Returns today price , and latest BFX COIN Price Profit Calculator Investment Returns BitMEX Crypto Signals. We have the best, most accurate crypto signals and we are not afraid to publicly demonstrate it for free, before you consider any of our (more accurate, higher profitability), premium options. First, check the results that happened here in free demonstrations. 15 trades by Bitmex Sicario Cartel: +18%, +23.80%, +26.76%, +42.67%, +9.86%, -14.75%, +10.11%, +9.52%, +16%, +37 Cryptocurrency calculator. 3492 cryptocurrencies Total Market Cap $197.89B. 24h Total Volume $11.52B. Bitcoin Heave® search Bitcoin Heave® BFX (BFX) is a cryptocurrency token and operates on the Omni platform. The last known price of BFX is $0.999459 USD. More information can be found at. Bitcoin Calculator. The CoinDesk Bitcoin Calculator tool allows you to convert any amount to and from bitcoin (up to six decimal places) and your preferred world currencies, with conversion rates

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CSO Bitfinex Phil Potter and WhalePool bitcoin traders celebrate BFX Token 100% Payment apr/2017

Recently, Bitfinex implemented a completely fake "Bitcoin Gold" token on their exchange, despite that this token doesn't exist, people still are willing to pay over $100 for this token. This is ... BFX - Back to Sit - Demo ... Bitcoin price drop imminent! & why BTC will continue dropping to make lower lows - TA - Duration: 51:25. OPTICALARTdotCOM Recommended for you. 51:25. Basic understanding of Fibonacci Retracement and how to plot against Bitcoin - Duration: 9:31. Crypto Jim Australia 22,281 views. 9:31. Trading Tip #15: ... Whalepool: Live Bitcoin, Cryptocurrency, Markets Trading Stream 24/7/365 WhalePool 25 watching Live now Whalepool: Beginners Guide to Trading Series - Duration: 39:35. bitcoin cash bitcoin calculator bitcoin chart bitcoin cash price bitcoin cost bitcoin crash bitcoin cash app bitcoin creator c bitcoin miner c bitcoin library bitcointicker.c bitcoin c code

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