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Same reason why prices went way up before MTGOX collapsed. People have "assets" in Bitfinex that they can't cash out for something with real value except by buy

Same reason why prices went way up before MTGOX collapsed. People have "assets" in Bitfinex that they can't cash out for something with real value except by buying crypto and hoping it gets transferred out before reserves are depleted. They can't cash out actual fiat. So fiat prices on the failed exchange go up up up until the legit regulated exchanges eventually decouple and then the house of cards comes down.

humaniania 5y ago
Keep in mind people will try to take advantage of arbitrage situations so this process can take a while. Go back and research MTGOX.
- graeme 5y ago
  Where would one start to research this?
graeme 5y ago
Are there delays on Bitfinex transfers currently? And were people able to transfer out of MTGOX at all? I had wondered if there were parallels in the runup, but haven’t heard widespread reports of people being able to transfer out yet. Or rather, more than the usual number of such reports, there are always some.
Animats 5y ago
Can you convert those assets to Gemini's stablecoin, GUSD? Gemini is regulated as a trust company in New York State and has pass-through FDIC insurance. You should be able to sell GUSD on Gemini and wire transfer the proceeds out. Gemini claims no limits on the size of wire transfers. This is useful, because most other exchanges make large withdrawals difficult. It's hard to convert USDT to GUSD. Coinbase does't list GUSD. Changely says they will do it for a 2% fee. Bequant has a market, but US$20,000 would wipe out their order book. Hotbit claims a deeper market but has a US$10,000/day withdrawal limit. Bitfinex has de-listed GUSD. Probably because it was too convenient a way to convert Tether to real US dollars. Gemini does not list USDT. It's striking how difficult it is to convert large amounts of USDT to a hard currency.
- SturgeonsLaw 5y ago
  What's stopping someone from doing USDT -> BTC -> USD?
  - Animats 5y ago
    Finding an BTC exchange that will reliably pay out millions of USD isn't easy. Although Gemini says no limits on wire transfers.

humaniania 5y ago

Keep in mind people will try to take advantage of arbitrage situations so this process can take a while. Go back and research MTGOX.

graeme 5y ago
Where would one start to research this?

graeme 5y ago

Are there delays on Bitfinex transfers currently? And were people able to transfer out of MTGOX at all? I had wondered if there were parallels in the runup, but haven’t heard widespread reports of people being able to transfer out yet. Or rather, more than the usual number of such reports, there are always some.

Animats 5y ago

Can you convert those assets to Gemini's stablecoin, GUSD? Gemini is regulated as a trust company in New York State and has pass-through FDIC insurance. You should be able to sell GUSD on Gemini and wire transfer the proceeds out. Gemini claims no limits on the size of wire transfers. This is useful, because most other exchanges make large withdrawals difficult. It's hard to convert USDT to GUSD. Coinbase does't list GUSD. Changely says they will do it for a 2% fee. Bequant has a market, but US$20,000 would wipe out their order book. Hotbit claims a deeper market but has a US$10,000/day withdrawal limit. Bitfinex has de-listed GUSD. Probably because it was too convenient a way to convert Tether to real US dollars. Gemini does not list USDT. It's striking how difficult it is to convert large amounts of USDT to a hard currency.

SturgeonsLaw 5y ago
What's stopping someone from doing USDT -> BTC -> USD?
- Animats 5y ago
  Finding an BTC exchange that will reliably pay out millions of USD isn't easy. Although Gemini says no limits on wire transfers.