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Unusual Trading Activity On The Bitfinex Crypto Exchange

24 points by optimalsolver 4y ago

jqpabc123 4y ago
So this looks like an insider trading scam run by the exchange. But crypto is "trustless"--- right? How is this sort of thing even possible? Surely this is illegal --- right? Crypto bros gettin used like ho's. Like taking candy from a baby. And you only have yourselves to blame.
- eimrine 4y ago
  What side are you looking at Bitfinex from if you are seeing some trustless?
  - jqpabc123 4y ago
    Right now I am looking at the entire crypto market from the side that is not losing money.
    - emptysongglass 4y ago
      It's trustless when it isn't centralized. Not sure what your point is if not don't trust centralized entities to handle your crypto?
      - jqpabc123 4y ago
        Without centralization ... and "trust", there would be no "market". People bought BTC at $60k because they "trusted" the "market" to value the crypto. This "trust" model built around unregulated "exchanges" is clearly broken.
        emptysongglass 4y ago
        People bought and sold crypto before centralized exchanges and custodial wallets. They will continue to do so.
        jqpabc123 4y ago
        Sure they will. Try selling your BTC for more than what the unregulated exchanges says it's worth and let me know how it goes. Even if you don't use/trust exchanges, they still set the value of your crypto by sheer weight of their market presence and trading volume. Any way you slice it, you are at their mercy and trust.
        deleted 4y ago
        [deleted]
        eimrine 4y ago
        >People bought BTC at $60k Maybe they will sell it even higher.
- mudrockbestgirl 4y ago
vgatherps 4y ago
The evidence posted doesn’t even remotely back up the claims made by the poster. The only thing they’ve really shown is that open long interest on bitfinex is up quite a bit. There’s literally nothing that could show how many traders it is, nothing that shows whether the trader(s) are underwater (hint - there are many other venues to hold positions on), nothing that shows what sorts of non-btc collateral might be posted (and the chart even shows a rise in BTC collateral), the claim that 1.8B of a position is impossible to unwind is laughable Dumping in crypto is (deservedly) all the rage and especially so on HN but this is massive speculation without much evidence backing it
- jqpabc123 4y ago
  this is massive speculation without much evidence backing it How about some evidence showing why it can't happen without severe repercussions? Trust ... but verify. As the crypto market currently stands, it's pure trust. Verification is not possible.
  - vgatherps 4y ago
    Are you talking about Tether releasing trustworthy detail of their financials (something I would LOVE to see)? Otherwise, don't really know what you want bitfinex to release here. If somebody wants to claim that the increase in long open interest is actually bitfinex themselves going leveraged long bitcoin, do you expect the exchange to release individual client positions so it can point to whomever else actually has the open interest? There's no basis to the claims that are being made by this poster and I don't see why anybody would care other than that it fits the narrative and it's from a popular account.
Grimburger 4y ago
Previously on HN: https://news.ycombinator.com/from?site=twitter.com/bitfinexed https://news.ycombinator.com/from?site=twitter.com/bitfinexe...

24 points by optimalsolver 4y ago

So this looks like an insider trading scam run by the exchange. But crypto is "trustless"--- right? How is this sort of thing even possible? Surely this is illegal --- right? Crypto bros gettin used like ho's. Like taking candy from a baby. And you only have yourselves to blame.

eimrine 4y ago
What side are you looking at Bitfinex from if you are seeing some trustless?
- jqpabc123 4y ago
  Right now I am looking at the entire crypto market from the side that is not losing money.
  - emptysongglass 4y ago
    It's trustless when it isn't centralized. Not sure what your point is if not don't trust centralized entities to handle your crypto?
    - jqpabc123 4y ago
      Without centralization ... and "trust", there would be no "market". People bought BTC at $60k because they "trusted" the "market" to value the crypto. This "trust" model built around unregulated "exchanges" is clearly broken.
      - emptysongglass 4y ago
        People bought and sold crypto before centralized exchanges and custodial wallets. They will continue to do so.
        jqpabc123 4y ago
        Sure they will. Try selling your BTC for more than what the unregulated exchanges says it's worth and let me know how it goes. Even if you don't use/trust exchanges, they still set the value of your crypto by sheer weight of their market presence and trading volume. Any way you slice it, you are at their mercy and trust.
      - deleted 4y ago
        [deleted]
      - eimrine 4y ago
        >People bought BTC at $60k Maybe they will sell it even higher.
mudrockbestgirl 4y ago

vgatherps 4y ago

The evidence posted doesn’t even remotely back up the claims made by the poster. The only thing they’ve really shown is that open long interest on bitfinex is up quite a bit. There’s literally nothing that could show how many traders it is, nothing that shows whether the trader(s) are underwater (hint - there are many other venues to hold positions on), nothing that shows what sorts of non-btc collateral might be posted (and the chart even shows a rise in BTC collateral), the claim that 1.8B of a position is impossible to unwind is laughable Dumping in crypto is (deservedly) all the rage and especially so on HN but this is massive speculation without much evidence backing it

jqpabc123 4y ago
this is massive speculation without much evidence backing it How about some evidence showing why it can't happen without severe repercussions? Trust ... but verify. As the crypto market currently stands, it's pure trust. Verification is not possible.
- vgatherps 4y ago
  Are you talking about Tether releasing trustworthy detail of their financials (something I would LOVE to see)? Otherwise, don't really know what you want bitfinex to release here. If somebody wants to claim that the increase in long open interest is actually bitfinex themselves going leveraged long bitcoin, do you expect the exchange to release individual client positions so it can point to whomever else actually has the open interest? There's no basis to the claims that are being made by this poster and I don't see why anybody would care other than that it fits the narrative and it's from a popular account.

Grimburger 4y ago

Previously on HN: https://news.ycombinator.com/from?site=twitter.com/bitfinexed https://news.ycombinator.com/from?site=twitter.com/bitfinexe...