Hodor Posted August 8, 2016 Share Posted August 8, 2016 http://www.econotimes.com/Cryptocurrency-exchange-Bitfinex-begins-site-re-launch-process-245310 Quote The ongoing platform recovery will require users to reset their password and their 2FA (if applicable). Bitfinex further said that Clef has been disabled for all accounts and users will now be required to re-enroll. In addition, all API keys have been revoked and the creation of new API keys will be re-enabled within the next 48 hours. Link to comment Share on other sites More sharing options...
paym8 Posted August 9, 2016 Share Posted August 9, 2016 Love this business model, source https://cointelegraph.com/news/bitfinex-users-to-lose-36 Quote Tokens to cover losses Bitfinex will issue BFX tokens to customers to record each customer's discrete losses. These tokens will remain outstanding until Bitfinex redeems them in full or until they are exchange for iFinex Inc's shares (upon both customers' request and Bitfinex acceptance). The issuance of these tokens is meant to reassure customers that the losses are not permanent and Bitfinex intends to continue operations once it is relaunched. Would trading of tokens be possible? The BFX tokens represent unsecured debt obligations of Bitfinex – a commitment to repay money at a future point in time. If these tokens can be traded, it would offer a way out for customers who are in need of liquidity. They could sell these tokens to speculators at a discounted value, thereby limiting their losses. Speculators too could profit, if they expect Bitfinex to revive operations and redeem these tokens. The value at which these tokens trade would represent the market's confidence in Bitfinex. Link to comment Share on other sites More sharing options...
Guest Posted August 9, 2016 Share Posted August 9, 2016 lol who will buy BFX tokens? Link to comment Share on other sites More sharing options...
Mercury Posted August 9, 2016 Share Posted August 9, 2016 lol who will buy BFX tokens?I might. It's a debt market and if I could be sure I could get face value exchange eventually . . .Sent from my LG-K210 using Tapatalk Link to comment Share on other sites More sharing options...
Guest Posted August 9, 2016 Share Posted August 9, 2016 10 minutes ago, Mercury said: I might. It's a debt market and if I could be sure I could get face value exchange eventually . . . Sent from my LG-K210 using Tapatalk You will buy tokens from a company that just lost 60 million $ and no one knows if what they do now is legally correct? I also don't know the face behind Bitfinex, or is this public? You love the risk, don't you? ;-) Link to comment Share on other sites More sharing options...
Mercury Posted August 9, 2016 Share Posted August 9, 2016 10 minutes ago, baggy23 said: You will buy tokens from a company that just lost 60 million $ and no one knows if what they do now is legally correct? I also don't know the face behind Bitfinex, or is this public? You love the risk, don't you? ;-) Not a big fan of high risk. but some yes- I wouldn't be in crypto otherwise For me to consider the offer it would have to be extreme devaluation (ie. panic sell off). That way even if the company only pays back some of the face value it is still a profit. This is no more risky than many other alt pump and dumps with at least something backing the value. Link to comment Share on other sites More sharing options...
kanaas Posted August 9, 2016 Share Posted August 9, 2016 13 hours ago, paym8 said: Love this business model, source https://cointelegraph.com/news/bitfinex-users-to-lose-36 yep .... some more insight on the school of life Link to comment Share on other sites More sharing options...
Pucguy37 Posted August 9, 2016 Share Posted August 9, 2016 It looks interesting. I may give it a second look. Link to comment Share on other sites More sharing options...
JoelKatz Posted August 9, 2016 Share Posted August 9, 2016 I wonder if this scheme would have worked for Bitfinex: 1) They have a gateway Ripple account that they use only for segregated wallets. 2) They create a Ripple account for each customer. They hold the keys but they have no legal right to transfer tokens out without permission. The tokens represent the legal right to bitcoins. 3) They adjust the balances of these accounts to reflect "delivery" of the bitcoins. 4) They keep the actual bitcoins in a cold wallet. This would let Bitfinex securely store the actual bitcoins in a cold wallet. An attack on the hot system on RCL can't steal actual bitcoins. There would be continuous proof of reserve. Anyone could check that Bitfinex's cold wallet holds as many bitcoins as all the assets on the Ripple ledger. And each user can confirm that their account holds the funds it's supposed to hold. The question is -- would this meet the requirement to "deliver" the asset to the customer. I think it could be argued that so long as Bitfinex has no legal right to transfer the tokens without permission and the tokens represent a claim on a provably sufficient supply of Bitcoins, probably so. If needed, they could employ a third party to handle the redemption (as I think they did anyway for US customers). Ant, thinlyspread, T8493 and 3 others 6 Link to comment Share on other sites More sharing options...
Guest Posted August 9, 2016 Share Posted August 9, 2016 (edited) 49 minutes ago, JoelKatz said: This would let Bitfinex securely store the actual bitcoins in a cold wallet. An attack on the hot system on RCL can't steal actual bitcoins. you forgot the important bit: 5) stolen IOU's to bitcoin could then have been frozen with Ripple's freeze feature. (as you just explained to me at the forum) Edited August 9, 2016 by Guest Link to comment Share on other sites More sharing options...
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