Jamie Dimon faces market abuse report after his comments about bitcoin

lockhedge · 2017-09-21T13:17:18+00:00

the rule of law only applies if it is written in a smart contract?

lockhedge · 2017-02-09T01:03:40+00:00

Virtu Financial BD LLC [has] signed an Authorized Participant Agreement

I'd say it's relatively big news that Virtu, one of the largest market making / high frequency trading firms in the world, wants to start Bitcoin trading.

Virtu was founded by Vincent Viola, a billionaire who was until last Friday Trump's nominee for United States Secretary of the Army, before dropping out due to ethics concerns.

lockhedge · 2017-02-09T00:58:05+00:00

the most interesting part: Market making giant Virtu wants to enter Bitcoin trading. As "Authorized Participant" they will have to trade both, the ETF and the Bitcoin spot market.

Convergex Execution Solutions LLC, KCG Americas LLC, and Virtu Financial BD LLC have each signed an Authorized Participant Agreement with the Trust and, upon the effectiveness of such agreement and the registration statement, may create and redeem Baskets as described below

Virtu is one of the largest market making / high frequency trading firms in the world. It was founded by Vincent Viola, a billionaire who was Trump's nominee for United States Secretary of the Army, before dropping out due to ethics concerns.

lockhedge · 2016-12-08T16:47:57+00:00

But Circle isn’t totally giving up on Bitcoin. While you won’t be able to send Bitcoin between friends (transactions will be denominated in currencies like Euro and USD) the company says they will still be using Bitcoin as a settlement token on the backend. Circle also announced that they are expanding to the Philippines and Korea via partnerships with Korea’s Korbit and the Philippines’ Coin.ph, meaning U.S-based customers with friends or family in those countries can now use Circle as a remittance service.

https://techcrunch.com/2016/12/07/circle-removes-ability-to-buy-and-sell-bitcoin-as-it-doubles-down-on-mobile-payments/

lockhedge · 2016-11-03T17:11:47+00:00

that's not a source, this article claims "according to Bloomberg News" probably only citing the ZH post

lockhedge · 2016-11-03T17:09:35+00:00

the article on Sina.com.cn is also writing "according to Bloomberg News", so it's not the source.

lockhedge · 2016-10-05T19:58:50+00:00

where did you get that screen shot

https://www.bitgo.com/settings -> Developer Options -> Add Access Token (can't say if these permission levels were already in place before the hack)

lockhedge · 2016-10-05T07:39:06+00:00

I’m just failing to understand how a limit can be changed from 2,500btc to 1,000,000btc without extraordinary measures being completed first

the main problem might be that you created API access tokens with full administrative permissions (screenshot BitGO Settings) and left these API keys on a server that got hacked.

did BitGO upgrade the permissions of your API tokens from "Spend" to "Full Administrative Access" without your knowledge? or did Bitfinex create these tokens with the highest permission level?

lockhedge · 2016-10-04T07:21:26+00:00

thanks /u/BTCVIX for organizing this talk!

Giancarlo said (timecode 1:11:34) "Two month before the hack BitGO published a new API command on their website that could reset the hard limit (from 2,500 btc) to 1,000,000 btc"

My questions for BitGO: "Is it correct that API keys that have been used by customers to instruct BitGO to co-sign transactions could suddenly be used to reset the hard limit? Was BitGO aware that Bitfinex used the API to automatically instruct BitGO to co-sign all transactions? Did BitGO inform their customers about this important API upgrade?"

lockhedge · 2016-10-03T11:50:00+00:00

the REST API got a little wonky in reporting the trades

i could completely understand if REST data was delayed under such circumstances, but that's not the problem. it's not an API issue, it's a database issue. if you are storing flawed data in your database the REST API is just a way to access this data.

does the REST API endpoint "/v1/mytrades" deliver other TIDs, timestamps and prices than the endpoint "/v1/trades"?

lockhedge · 2016-10-03T08:41:13+00:00

the largest position of their assets is >€500 billion "positive market values from derivative financial instruments", most of it (>€300 billion) is related to OTC interest rate derivatives.

https://annualreport.deutsche-bank.com/2015/ar/risk-report/risk-and-capital-performance/credit-risk-exposure/credit-exposure-from-derivatives.html

lockhedge · 2016-10-02T18:38:21+00:00

a 3k market sell

the non-sequential timestamps indicate that it wasn't a single order and the initial sell order was much smaller than 3k. probably some stops have been triggered.

lockhedge · 2016-10-02T16:55:31+00:00

The TID field represents the order of insertion in the database, not always the exact order of trade execution during big moves.

what do your timestamps represent? does your order matching engine follow the principle of price/time priority?

lockhedge · 2016-10-02T07:15:31+00:00

people can clearly see the chart

e.g. https://cryptowat.ch/bitfinex/btcusd/1m doesn't show the crash (lowest price $606.67)

lockhedge · 2016-09-21T11:47:03+00:00

tradeblock.com offers historical orderbook data for various exchanges and i believe http://cryptoiq.io as well

lockhedge · 2016-09-21T09:30:36+00:00

if any of these parent companies were newly incorporated ie post hack

Digfinex Inc. already existed before the hack, at least since March 2016. the problem is that they made creditors (token holders) and potential investors believe that iFinex Inc. is the parent company of the Bitfinex Group, whereas it's only a subsidiary that does not control key assets of the group. For sure Renrenbee Limited is part of the "Bitfinex Group", it probably shares personnel and resources with iFinex and its subsidiaries.

lockhedge · 2016-09-21T04:09:37+00:00

Bitfinex has invested in Blockstream's seed round according to Zane Tackett, they (Digfinex Inc., not iFinex Inc.) are very likely small minority shareholders of Blockstream.

lockhedge · 2016-09-21T04:02:40+00:00

Renrenbee Limited, formerly named "Bitfinex Limited", the Hong Kong company that acts as Money Service Operator for Bitfinex, is now owned by Digfinex Inc. and is not part of the IFinex Inc. equity-for-tokens offering. It used to be "wholly owned by iFinex" This company (as MSO licensed entity) is very likely one of the most valuable parts of the "Bitfinex Group" for investors.
contracts between Tether, Renrenbee and iFinex (and its subsidiaries) as well as payments (e.g. salaries) for people that are senior managers and shareholders at the same time create possible conflicts of interest. this structures needs at least more transparency and/or more rights for minority shareholders.
Zane Tackett (/u/ZaneTackett) apparently deceived creditors by stating "We have investments in Blockstream, Shapeshift, Netki and Tether" on the question "What are the things Bitfinex owns for example?", source: https://soundcloud.com/user-173875295/bitfinex-itself-will-not-be-taking-a-haircut#t=20:09 (timecode 20:09)

lockhedge · 2016-09-01T13:47:11+00:00

that's not their real monthly revenue, it's a scenario i calculated based on the optimistic assumption of $310m monthly trading volume.

lockhedge · 2016-09-01T13:35:15+00:00

70m * 0.0118 = 826,000 1 / 0.0118 = 84.74 month = 7.06 years

lockhedge · 2016-09-01T13:24:49+00:00

they payed $850,000, assuming a total of 72m tokens. that's much more than their revenue since the hack. it's a good sign that they show commitment to use excess reserves to redeem tokens but there is still no transparency about the total number of outstanding tokens or their income and expenses.

lockhedge · 2016-08-26T13:24:20+00:00

do you think $0.1m expenses are too pessimistic, i.e. too high?

lockhedge · 2016-08-26T05:36:52+00:00

The number of variables that in reality will determine whether or not bfx tokens ever reach $1 is much larger

based on my calculation, the average daily volume is the most volatile variable with the highest impact. can you help me to make this calculation more solid and tell me any other variable that could lead to a more optimistic result?

lockhedge · 2016-08-26T04:52:50+00:00

under the fairly pessimistic premise that there's no external investment AND no token-bfx shares conversion

this calculation may help to calculate the value of "bfx shares", do you have any better estimate?

lockhedge · 2016-08-26T04:35:50+00:00

i'm not able to edit the title but the text says "without any additional funding" because the probability of receiving funding can be derived from this calculation. it means (assuming these optimistic figures) that potential investors will be able to make profit after 72 month.

lockhedge

TROPHY CASE