EXPOSED: The Secret Scams of Coinbase, Bittrex, Kraken, and BTC-e
Bitcoin climbed to a record high this past Sunday of 3,041.36, according to CoinDesk. Then suddenly the next day, plummets to $2,532.87, while ethereum and technology stocks also dramatically declined.
By 9:00 p.m. that night, it had drastically recovered back up to $2,721.
At the same time this drop was occurring, two major bitcoin exchanges: Coinbase and BTC-e, who account for 23% of the bitcoin market, also went offline, preventing investors from being able to manage their currency.
Coinbase cited high customer traffic and trading volume for being “down for maintenance.” They claimed that the issue was resolved by 7:44 p.m. EST; basically after all of the damage was done and bitcoin had begun to recover.
BTC-e in fact tweeted that it was hit by distributed denial-of-service attacks, or DDoS.
Simultaneously, a new blockchain-based project, known as Bancor, was introduced, absorbing mostly ethereum and bitcoin to create a new currency, known as bancor network tokens (BNTs).
Throughout the day, while major exchanges were mostly offline, it raised $150 million, setting an industry record for an initial coin offering (ICO).
Bancor was then forced to extend their ICO by three hours, due to “overwhelming demand and traffic, and massive malicious attacks,” according to a blog post from the company.
How generous of them. So basically, once bitcoin and ethereum lost their maximum value, you were allowed back online to strategize your trades.
The way I see it, this is how it went down:
Massive amounts of bitcoin and ethereum were transitioned into a new cryptocurrency known as Bancor. As the values of the first two drop, the new one rises, so in a sense, none of those initial investors really lost any wealth.
They profited massively after the transition of wealth from two currencies into a new one.
We (the average guys) on the other hand were prevented from taking place in this transition of wealth. Once they had established a new currency, once their wealth had stabilized, we were allowed back in to buy up a bits and pieces of devalued ethereum and bitcoin
We lose money, these large investors do not. They in fact, position themselves to make a quick profit, virtually in one day.
It turns out, the exact same scenario played out 3 weeks earlier on May 25, in which bitcoin drops more than $400 in value, while cryptocurrency exchanges such as Coinbase went offline, preventing investors from taking action.
Simultaneously, a new blockchain project, known as CryptoPing, launches a crowdsale.
"Behind the project is a group of successful cryptocurrency traders with 5+ years of experience who prefer to remain anonymous ... 9,000,000 tokens based on Waves platform are to be issued for the crowdsale with total worth of 1000 BTC. Additional 1,000,000 tokens will be reserved for one-level 10% referral program."
Once again, a transition of wealth, from bitcoin and ethereum into CryptoPing tokens, occured. Once wealth had stabilized, everyone else was allowed in.
They moved their wealth over, then we, who had lost value, attempted to move in and feast on the scraps. But thousands of people actually lost substantial sums of money because, again, Coinbase went offline during a downturn.
This actually yet is still just another repeat of what happened on Sept. 26, 2016, when the cryptocurrency FirstBlood had its ICO.
It raised $5.5 million USD in ethereum in a matter of minutes.
Google Coinbase on that date, this is the top return:
Coinbase Status - Incident History
https://status.coinbase.com/history
Ethereum transactions offline. We identified the underlying issue with Ethereum transactions, and were able to implement a fix. Transactions should now be ...
Missing: september 26 2016
Are you beginning to see a pattern? These exchanges are scamming the public and using technical explanations as an excuse.
Who Here Uses Bittrex?
Bittrex is an online trading platform that accepts almost all coin cryptos, scam included, and announces them as an exclusive coin; USB coin for example.
Bittrex Co-founder “Rami”, in response to the USB scam, stressed that while the company is always updating its security protocols, coins listed are based mostly on consumer demand. He stated that “we do our best to weed this out, but in the end it’s a losing battle."
Bittrex sounds benign enough, however they haven't addressed their withdraw fees, which are some of the highest in the industry.
All trades have a 0.25% commission rate.
They are making a killing on trades, hundreds of dollars per transaction on large orders. Of course they will accept almost all cryptocurrencies put on the market.
In fact, it is rumored Bittrex pushes scam currencies.
Makes sense, 0.25% commission rate.
More intriguing yet, what is Bittrex and where did it come from?
Well, it turns out, Mt. Gox used to be the largest exchange of virtual currency, until half a billion dollars in bitcoins went missing.
Mark Karpeles, who is said to be the King of Bitcoin, was a programmer who took over mtgox.com due to its overwhelming traffic of eager bitcoin investors, and was responsible for shaping the world's first popular bitcoin exchange.
He benefited greatly in wealth, buying in at bitcoin's beginning around $13 per coin. It is said that in 2013, Karpeles at that point owned 88% of mtgox.
Mtgox soon however, began to suffer tremendous hacks, in which they then sought the guidance of an individual known as Jesse Powell, the founder of Kraken .. yet another exchange.
Half a billion in bitcoin goes missing ...
mtgox dies ...
The same two people that were in charge, the software programmers involved with mtgox, then go on to found the two most dominant cryptocurrency trading platforms we know of today: Bittrex and Kraken.
Soon after, Kraken partnered with BTC-e. It has also absorbed several major exchanges, including Glidera, Coinsetter, Cavirtex and Clevercoin.
[Glidera was considered Kraken’s first step towards a global ecosystem.](http://Glidera-Kraken’s first step towards a global ecosystem)
Glidera is able to perform fiat-to-Bitcoin ACH transfers, or basically what banks do: trading with money they do not actually have; creating money out of thin air.
Sound familiar?
Kraken is now averaging 4.19 trades per minute with currency it does not possess, or in a sense fiat/derivative trading: one of the core reasons behind the 2008 economic crash.
Is it me, or are there dots upon dots upon dots coming together that amount to one of the largest scams in the history of the world...?
Connections and corruption exists between all four of these exchanges that reeks of central banks involvement, and millions of average people seeking to profit are the collective patsy.
Feel free to comment. Please provide sources as I am very eager to dig further.
Disclaimer: I am just a bot trying to be helpful.
If you control Coinbase you basically control the price of Bitcoin, It's not a good idea for anyone to have that much power, we need more credible competition.