Trade with confidence on the worlds leading Bitcoin Exchange

I just had a look at the MtGox chart for the first time in ages and my jaw nearly dropped through the floor.

Price is plummeting!!! I mean look at that! I kind of knew it was but without bothering to see what it looked it had remained quite an abstract idea, until I saw that chart.

So what the hell is going on at Gox ? To try and answer that questions I thought I’d have a look at their web site. I was quickly reassured with this message, “Trade with confidence on the worlds leading bitcoin exchange”. But what about the fact people can’t withdraw any bitcoins and can barely withdraw any fiat? There were also buttons I could have clicked with tags like ‘secure’ and ‘reliable’ but I didn’t bother clicking them guessing I wouldn’t find the information I was after there.

Edit: As Gustavo has pointed out the press release updates are at the bottom right of the Gox homepage, I just needed to scroll down a little. (doh)

I went to google and did find a press release stating that global withdrawals have been reinstated! … which sounded quite exciting until I noticed the date of it, July 2013. I think there have been press releases about this current mess but couldn’t find them. I am quite tired though so maybe my searching skills are below par just now.

Theres lots of opinions on the forums, some people excited about buying cheap coins. The most enjoyable theory I read was this one from forum newbie ericmoulten. Here’s what the Mt. Gox Press Release will say and why

I learned the hard way when bitcoins where stolen from me on bitcoinica (allegedly hacked) that if you don’t hold those bitcoins in your own wallet, you don’t really hold them. I fear for MtGox users they may learn a similar lesson. Behind the MtGox curtains they could easily have been messing around fractionally reserving bitcoins in the exact same way the banks do with your money. It all goes well until everyone wants their money/bitcoins back at the same time.

To close heres a quick look at the price on Bitstamp.

Thankfully Bitstamp price is holding up a lot better, although a down trend seems very apparent. Looks to be potentially strong support above $500.

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23 thoughts on “Trade with confidence on the worlds leading Bitcoin Exchange

  1. Stupid question but why such a gap between mtgox and bitstamp ? the market should have reduced that, shouldn’t it ? why couldn’t I buy on Mtgox and sell and bitstamp ? we can’t deposit at Mtgox ?

    Thanks for your blog by the way !

  2. Hi thanks for commenting. I guess the gap will close when MtGox resumes normal service, unless it dies a horrible death before then. Although even before this fiasco there was already a gap caused by the problems getting fiat out of Mtgox.

    1. Oops I just needed to scroll down a bit. Still I think these issues should have more prominence on their website, its some serious shit. Just read the latest update which basically says, theres more delays.

  3. personally I really doubt that mtgox is done. they have been through worse and always made their customers whole. This was a blip in the radar imo compared to past events. Mtgox still has had Huge volume relatively speaking(not what they used to be but then again prices have been orders of magnitude larger then in the past aswell….). Running an exchange like mtgox is an unimaginable cash cow. There is very little legal compliance that is needed, essentially just a handful of employees and cost to run servers and ddos mitigation are about it for overhead.

    Regarding the link it is a very creative plan laid out but I think the second post actually hits on facts not supposition and does a better job of summing up mtgox…. Mtgox will rally and those that have some coins/cash there and and have been able to buy at these discount prices will be laughing all the way to the bank.

    there is also the case of the well respected Roger Ver (owner of memory dealers and long time proponent of bitcoin) who was once given a look at the inner workings of mtgox, who recently made a public offering of 8/10 for any BTC that was stuck on mtgox since this all started…… He has been quoted publicly saying things to the effect that he can’t see how mtgox would be insolvent given what he knows….

    conspiracy theories and FUD are abound. We have to remember that bitcoin attracts a crowd that already has issues with trust given the legacy systems that bitcoin is challenging. There is good reason to have a bad taste in ones mouth as far as mtgox is concerned but the facts available point more toward status quo at handling and facing problems at mtgox….

  4. The show is almost over for Mt. Gox: 😦

    Breaking news: Mt. Gox CEO Mark Karpeles has just resigned from his position as a board member with the Bitcoin Foundation.

    The Foundation posted the announcement on its blog today at 4:00AM GMT:

    “Effective immediately, Mark Karpeles has submitted his resignation from the board of directors. We are grateful for his early and valuable contributions as a founding member in launching the Bitcoin Foundation.”

    “As CEO of MtGox Co. Ltd. (Japan), he held one of the three elected industry member seats. Further details, including election procedures, will be forthcoming.”

    There has still been no notice since 20th February as to when and if Mt. Gox will resume bitcoin withdrawals for its users. While there were reports of tests and customers receiving withdrawals over the weekend, the company had not made any formal announcement on the issue at the time of writing.

    The price of bitcoin on Mt. Gox also rose from its sub-$100 level on Friday to more than $300 by the end of Sunday. It was around $250 at the time of writing.

  5. I found this, I don’t know if it is genuine or not:

    Then I saw the whois info about gox.com, and it seems to be updated yesterday by a Mark Karpeles…

    Browsing http://www.gox.com, redirects to http://www.mtgox.com (currently offline).

    If you visit https://www.gox.com, you get an invalid certificate…. actually valid / issued to http://www.mtgox.com.

    Hollywood could make a good movie with all this 😀 (sorry, but some humor is always good I think :D).

  6. WOW…. Honestly there was writing on the wall but still taken by surprise. I didn’t think this could happen. Either its negligence, fraud or brazen theft or some combination at mtgox which thankfully is all under the purview of law so I can only hope for an investigation and justice to prevail despite it being an “unregulated” realm…. RIP my bitcoins. I never had much invested in $ terms but in bitcoin terms it had grown nicely. Moving it over to mtgox for trading liquidity was a mistake but hindsight is 20/20… Shed a tear for me and then move on.

    1. Well, maybe there is a thin hope to see mtgox or the newest gox site right back with accounts recovered.
      I saw a leaked document (not confirmed by mtgox) wich it’s written more than BTC 700 000 have been lost. If it was right, we ll never see or money back. If loss was less than 700 KBTC, an haircut would be done on mtgox user accounts.

    1. This is really interesting. It sounds plausible but I can’t help having too much suspicion. I think more likely they trying to make an alibi. Who knows? Holding all those bitcoins .. so much temptation. I think Gox have been naughty boys, doing what jp morgan do to precious metals, moving markets for own profit. Maybe selling bitcoins that weren’t theres here and there to buy back later. Sounded good until it stopped working.

  7. I saw that document too. Those numbers just don’t seem to add up imo… That is a brazen theft if done through the tx malleability exploit… and if things are as mtgox has insinuated with needing accounts to be verified then they should in theory have ID on hand to follow up on withdrawals…. There would need to trail in the blockchain of where funds were being withdrawn to. There could only be a handful of accounts that this could be orchestrated under, and to create a new account for each instance where one would try and exploit the tx mal. would be too cumbersome imo…. anyways, I would rather see my BTC back then the market $ value of it. What else concerns me is the personally identifiable info that now exists with Mtgox….or whoever at this point.

    In reality there are no exchnges that are worthy of our trust. None of these exchanges have anything more on their site about balances, privacy protection etc then mtgox did. And when push comes to shove and anything happens at these exchanges can you really trust them with anything of yours? Counter party risk is still EXTREMELY high regardless of the name of the exchange. The real risk that I was taking by being exposed to bitcoin wasn’t from bitcoin being a nascent realm … it is the exchanges, wallets, and service provided around this. It takes faith in the security of a wallet provider, the exchange and the people (fallible creatures) involved. unless you can code your own wallet etc you will always be relying on others expertise.

    PS regulation wouldn’t have helped any. As it stands mtgox by law had the japanese authorities auditing their books monthly from what I have gathered….. and where did it lead us? All that is needed is upholding contract, and property rights and all potential ills can be solved in times of injustice/failings.

    1. “In reality there are no exchanges that are worthy of our trust.”

      That sums up my way of thinking, which is why I’ve been trading on localbitcoins and keeping my bitcoins in my own wallet.

      edit: sorry to hear about your losses, I know a little bit how it feels when i lost bitcoins with bitcoinica. it sucks 😦

  8. There are theories that there is a loss of corruption of a key for the cold storage wallets… also thories that USA has gags/investigation/seizure of cold storage and all coins regarding SR investigations and potentially the C.Shrem investigations.

    The Tx Mal itself would leave a trail on the block chain. There are also people that have been eyeing the mtgox wallet from the first hack years back where mtgox disclosed balances to the public in an atttempt to prove that they were still in a solvent position and that this wallet still currently exists with large number of coins in it.

    The story is far from over

    Now I just have to decide how to get back in and when. Anyone think it will go back to $75 when I first entered ? 😀

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