The madness continues with the amount of people flowing into crypto every day and the exchanges that lack the server capacity to hold them. Sites like Bittrex and Cryptopia have decided that in the short term until they can get more servers up, the only solution is to halt registration. For people who want to speculate or sell their coins, but dont have accounts this is quite the problem. There is now actually a market for accounts on sites like these at prices that are nothing to scoff at.
In more than one case I saw people paying over $500 for a bittrex account and over $2000 for one that was completely verified. The completely verified account might be an outlayer because there is a chance that by selling that account someone could rack up a ton in money that needed to be paid as capital gains, if bittrex was ever audited. However just basic accounts going for $500 is insane and shows just how much people are willing to pay in order to just get on an exchange.
These people are obviously not just buying certain coins, but most likely speculating on a large amount and selling them quite often. If I had to guess, they are probably partaking in coins that are pumped deliberately and dumped in a few days. With deep pockets and a high liquidity someone doing that could make millions a year. If you are going to be risking your money on an exchange you are going to want to do it on the ones with the most liquidity and reputability which means most other exchanges arent an option.
Even cryptopia which isnt as popular as bittrex is shutting down registration which means the bittrex overflow couldnt even be handled. I have no idea where people are going after cryptopia but I know some people who purchased accounts because they dont trust most other places. The overflow of people is part of the reason that customer support has been so bad these past few weeks and it makes me wonder how many people are actually getting into the space.
I do have to say with this amount of speculation to the point where people are buying accounts for exchanges, I think we are due for a huge price correction. This crazyness reminds me of the dotcom bubble when people were buying everything without even knowing what the company did as long as they had a dot com in their name. I have a feeling this will be a story that we will look back at in 10 years and say “I cant believe people were actually doing that”. As for selling accounts, I wouldnt recommend it personally because its just not worth the money for the risk of security for you personally. I do wonder how long it will take for these exchanges to fully open registration again.
-Calaber24p
I've already written a fantastic article on this topic with even more detail right here on Steemit.com!
It's both amazing to see the immense demand for altcoins that account creation is disabled across many major exchanges, and also sad to see that a black market of account mongering has arisen to support that demad.
It is temporary for sure, and oh boy, when those flood gates open, be ready for a mega boom in altcoin values.
-The Beached Whale-
Editor in Chief - The Anderson Report
Great article ! I think many people are really surprised with how this is working out. I think they will open the gates, but there is profit for many to be made in the short term.
Yeah! I don’t think selling an account is a very good idea. Seems like there is much opportunity for “unintended consequences”!
Buying verified accounts sounds dangerous, no? How would the seller delete her bank-transfer btc-tranfer info, cookies, etc... to feel comfortable selling to what might be a potential hacker buying the account?
Also the appearance of TRON in just WEEKS is a bit toppy, check out the reasoning...
https://steemit.com/bitcoin/@harpooninvestor/cryptocurrency-bitcoin-selloff-today-tron-based
Yeah its extremely dangerous for security reasons, you dont want to be tied to those accounts or give away your information which is why I say you shouldnt do it.
$2000 for an account Wow! it sounds crazy. Doing that process could be a risk, because you can loose your money, imagine that you purchase an account for 2000$ US and that you make a transfer of 900 or 1300 steemit dollars to Bittrex and the ex-owner takes the amount that you have just transferred... bad thing could happen looooooool. (Dear Bittrex god, expand you blessings to your followers that are waiting to access on your change rates)
Yeah its completely crazy, even if you were able to get the money you probably end up spending more when it comes to the value of the risk you take on.
Damm I was thinking about opening an account on bittrex.
So they aren’t accepting new users for the moment?
That is totally correct, Bittrex is not accepting new users. What we can do is save the coins until a new server appears, i think.
but is is not a permanent solution of problem
Yeah.....i fully agree with you, I think selling accounts is not an option to be considered
kucoin is still taking new accounts. I wonder if that coin will see a surge...