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... engaging in an arbitrage scheme that leveraged the depressed Mt. Gox price to reap gains on other exchanges. This was allegedly happening well before th
by panarky 13y ago
... engaging in an arbitrage scheme that leveraged the depressed
Mt. Gox price to reap gains on other exchanges. This was allegedly
happening well before the exchange’s breaking point ...
Step 1: Drive the Gox price into the basement
Step 2: Buy devalued Gox-BTC using the fiat you have left
Step 3: Sell those coins on other exchanges at full price
Step 4: Rinse and repeat until solvent
What could possibly go wrong?
- conroe64 13y agoThis would only work if the coins were still there. If the Gox coins are stolen/lost, then what are you buying? A worhtless claim to coins that don't actually exist, and that you can't sell.
- zwily 13y agoThe assumption is that there are still some coins left to bootstrap the scheme.
- conroe64 13y agoEven if there are some coins left, there is nothing to repeat. You sell them, and the plan is over... it doesn't bootstrap anything.
- tlrobinson 13y agoIIRC, Gox was accepting deposits (both bitcoins and fiat) until very recently.
- conroe64 13y agoWho would deposit bitcoin in an exchange where the average price is a fifth of what is was in other exchanges? Fiat deposits wouldn't matter for this plan.
- tlrobinson 13y agoI don't know. Who would leave their bitcoins in an exchange that had been demonstrating withdrawal problems for 6 months?
- panarky 13y agoThere's some evidence that Gox still has some BTC. For example, this address was controlled by Gox in 2011, and it still has 50,000 BTC. https://blockchain.info/zh-cn/address/1P3S1grZYmcqYDuaEDVDYobJ5Fx85E9fE9 https://blockchain.info/zh-cn/address/1P3S1grZYmcqYDuaEDVDYo... Whether they still control the private keys is different question. More discussion and evidence here: http://www.reddit.com/r/Bitcoin/comments/1z30q9/gox_has_at_least_50000_btc/ http://www.reddit.com/r/Bitcoin/comments/1z30q9/gox_has_at_l...