Author Topic: bitUSD marketcap  (Read 5963 times)

0 Members and 1 Guest are viewing this topic.

Offline marcelus

  • Jr. Member
  • **
  • Posts: 25
    • View Profile
It has emerged Invictus is right in the firing line of a SEC investigation in crypto IPOs. People are putting their money in BitUSD in the expectation that this news will cause the price of BitsharesX to fall without crashing it completely.

Not only is this a lie (about the firing line of SEC investigation), but you have it all backwards.  Someone who would short hundreds of thousands of $ of bitUSD in existence is actually betting that BTSX will soon RISE in price, not fall.

Whoever shorted all of the bitUSD into existence, increasing the supply, is both a whale and is bullish on BTSX.

Time will tell it's not a lie. I wasn't referring to the shorting alluded to above. I was referring to people, like myself, who are shorting BTSX by buying BitUSD with a view to purchasing BTSX later. Going pretty well so far ;) 
« Last Edit: October 30, 2014, 02:23:13 pm by marcelus »

Offline Ander

  • Hero Member
  • *****
  • Posts: 3506
    • View Profile
  • BitShares: Ander
But someone had to buy all that as well; it seems unlikely that half a million worth of shorts and bids would appear at almost exactly the same time. My bet is that some whale shorted it all to himself.

It seems to me that it is probably someone internal to the dev or marketing team, creating bitUSD for some purpose, like you said.  (Using dev BTSX shares to short, using dev bitcoin funds to buy the bitUSD).  The bitUSD will then be used for...???
Paying team salaries?  Beginning a business partnership they have been working on?


(Or it could just be a bullish BTSX whale looking for leverage matched up with a bearish whale looking to hedge).
https://metaexchange.info | Bitcoin<->Altcoin exchange | Instant | Safe | Low spreads

Offline biophil

  • Hero Member
  • *****
  • Posts: 880
  • Professor of Computer Science
    • View Profile
    • My Academic Website
  • BitShares: biophil
It has emerged Invictus is right in the firing line of a SEC investigation in crypto IPOs. People are putting their money in BitUSD in the expectation that this news will cause the price of BitsharesX to fall without crashing it completely.

Not only is this a lie (about the firing line of SEC investigation), but you have it all backwards.  Someone who would short hundreds of thousands of $ of bitUSD in existence is actually betting that BTSX will soon RISE in price, not fall.

Whoever shorted all of the bitUSD into existence, increasing the supply, is both a whale and is bullish on BTSX.

But someone had to buy all that as well; it seems unlikely that half a million worth of shorts and bids would appear at almost exactly the same time. My bet is that some whale shorted it all to himself.
Support our research efforts to improve BitAsset price-pegging! Vote for worker 1.14.204 "201907-uccs-research-project."

Offline Ander

  • Hero Member
  • *****
  • Posts: 3506
    • View Profile
  • BitShares: Ander
It has emerged Invictus is right in the firing line of a SEC investigation in crypto IPOs. People are putting their money in BitUSD in the expectation that this news will cause the price of BitsharesX to fall without crashing it completely.

Not only is this a lie (about the firing line of SEC investigation), but you have it all backwards.  Someone who would short hundreds of thousands of $ of bitUSD in existence is actually betting that BTSX will soon RISE in price, not fall.

Whoever shorted all of the bitUSD into existence, increasing the supply, is both a whale and is bullish on BTSX.
https://metaexchange.info | Bitcoin<->Altcoin exchange | Instant | Safe | Low spreads

Offline marcelus

  • Jr. Member
  • **
  • Posts: 25
    • View Profile


It has emerged Invictus is right in the firing line of a SEC investigation in crypto IPOs. People are putting their money in BitUSD in the expectation that this news will cause the price of BitsharesX to fall without crashing it completely.

Where has this emerged?

Nowhere, he's making it up.

No. No I am not.

https://coinfire.cf/2014/10/27/sec-begins-sending-investigation-letters/

https://www.scribd.com/doc/244670525/Letter-LA-Office

Yes, yes you are. Where do you see anything about Bitshares being in the "firing line"?

I agree this isn't great news, but for now I3 and Bitshares have not been targeted..

They're writing to a plethora of people behind crypto IPOs. It's common knowledge in crypto circles that BitsharesX is one of these. They advertised their token as a 'share' and call themselves a decentralised bank. You can be damn sure they're right at the front of the queue. Because it's decentralised and in the wild, it's not a major problem for the protocol long-term, but there may be consequences for some and short-term price instability.   

Offline svk



It has emerged Invictus is right in the firing line of a SEC investigation in crypto IPOs. People are putting their money in BitUSD in the expectation that this news will cause the price of BitsharesX to fall without crashing it completely.

Where has this emerged?

Nowhere, he's making it up.

No. No I am not.

https://coinfire.cf/2014/10/27/sec-begins-sending-investigation-letters/

https://www.scribd.com/doc/244670525/Letter-LA-Office

Yes, yes you are. Where do you see anything about Bitshares being in the "firing line"?

I agree this isn't great news, but for now I3 and Bitshares have not been targeted..
Worker: dev.bitsharesblocks

Offline marcelus

  • Jr. Member
  • **
  • Posts: 25
    • View Profile
It has emerged Invictus is right in the firing line of a SEC investigation in crypto IPOs. People are putting their money in BitUSD in the expectation that this news will cause the price of BitsharesX to fall without crashing it completely.

Where has this emerged?

Nowhere, he's making it up.

No. No I am not.

https://coinfire.cf/2014/10/27/sec-begins-sending-investigation-letters/

https://www.scribd.com/doc/244670525/Letter-LA-Office

Offline liondani

  • Hero Member
  • *****
  • Posts: 3737
  • Inch by inch, play by play
    • View Profile
    • My detailed info
  • BitShares: liondani
  • GitHub: liondani
BM already stated that his intentions are he will buy bitUSDs with 3000 BTC and with that money he will pay salary’s every month... (that way he helps the peg and the bitshares ecosystem)
Of course he will do that in more than one steps... If you check the cold-storages in BTC they have in about more than 20 addresses of 100 BTC each https://docs.google.com/spreadsheet/ccc?key=0AqTwk-e7yzJydDFnQmlkTVlkbWpubnJBbzR2UG5ucnc&usp=sharing#gid=0  you will see that about 600 BTC are moved the last days (probably to exchanges to buy btsx they have used for bitUSD shorting and buying back).... Make that sense?

Offline svk

It has emerged Invictus is right in the firing line of a SEC investigation in crypto IPOs. People are putting their money in BitUSD in the expectation that this news will cause the price of BitsharesX to fall without crashing it completely.

Where has this emerged?

Nowhere, he's making it up.
Worker: dev.bitsharesblocks

Offline matt608

  • Hero Member
  • *****
  • Posts: 878
    • View Profile
It has emerged Invictus is right in the firing line of a SEC investigation in crypto IPOs. People are putting their money in BitUSD in the expectation that this news will cause the price of BitsharesX to fall without crashing it completely.

Where has this emerged?
« Last Edit: October 28, 2014, 06:20:02 pm by matt608 »

Offline marcelus

  • Jr. Member
  • **
  • Posts: 25
    • View Profile
It has emerged Invictus is right in the firing line of a SEC investigation in crypto IPOs. People are putting their money in BitUSD in the expectation that this news will cause the price of BitsharesX to fall without crashing it completely.


Offline Chuckone

  • Sr. Member
  • ****
  • Posts: 314
    • View Profile
How dumping BTSX get you profits from shorting bitusd?

My understanding is that if BTSX are dumped their price to usd will fall, so someone shorting bitusd (expecting usd to fall vs. BTSX) will lose.


Oh right yes I'm mistaken.

Someone with a large position is quite bullish about the future value of BTS...

So the big shorting action increasing bitUSD market cap is just because someone thinks BTSX will rise?  But someone had to buy that bitUSD didn't they.  And those people must think BTSX will go down so they buy bitUSD to protect themselves. So overall is increase in bitUSD market cap just means people are hedging, placing their bets within the system, not necessarily that any new money is entering?

Until there are on/off-ramps from fiat to bitUSD, each bitUSD created from shorts must be bought using BTSX on the Bitshares-X trading platform. So my understanding would be that any matched short definitely doesn't mean new money came in. The only way to have new money coming in the ecosystem would be through BTSX on the centralized exchanges. I'm no market expert, but that would be my interpretation.

You can buy bitUSD on Bter. Not a great onramp, but onramp no less.

Sent from my SCH-S720C using Tapatalk 2

True. But with a 24h volume of 0.0BTC, I avoid mentioning it as useable on-ramp ;)

Offline biophil

  • Hero Member
  • *****
  • Posts: 880
  • Professor of Computer Science
    • View Profile
    • My Academic Website
  • BitShares: biophil
How dumping BTSX get you profits from shorting bitusd?

My understanding is that if BTSX are dumped their price to usd will fall, so someone shorting bitusd (expecting usd to fall vs. BTSX) will lose.

Oh right yes I'm mistaken.

Someone with a large position is quite bullish about the future value of BTS...

So the big shorting action increasing bitUSD market cap is just because someone thinks BTSX will rise?  But someone had to buy that bitUSD didn't they.  And those people must think BTSX will go down so they buy bitUSD to protect themselves. So overall is increase in bitUSD market cap just means people are hedging, placing their bets within the system, not necessarily that any new money is entering?

Until there are on/off-ramps from fiat to bitUSD, each bitUSD created from shorts must be bought using BTSX on the Bitshares-X trading platform. So my understanding would be that any matched short definitely doesn't mean new money came in. The only way to have new money coming in the ecosystem would be through BTSX on the centralized exchanges. I'm no market expert, but that would be my interpretation.

You can buy bitUSD on Bter. Not a great onramp, but onramp no less.

Sent from my SCH-S720C using Tapatalk 2

Support our research efforts to improve BitAsset price-pegging! Vote for worker 1.14.204 "201907-uccs-research-project."

Offline tonyk

  • Hero Member
  • *****
  • Posts: 3308
    • View Profile
Observations:
One huge short (bitUSD) order was placed with relatively low interest rate (but not 0% interest); 5 min later a bitUSD buyer bought
close to 50% of that order worth of bitUSD.


Theory...

-I3 bought themselves about 370,000 BitUSD (in a single transaction, probably more total including some smaller ones);

Why?

- BM has stated that he does his accounting in USD (bitUSD) and is going to pay everybody in bitUSD; so having USDs is not an issue or opinion on the price movement of BTSX;
- Why 370K? This is pretty close to the total amount of all grandfathered shorts ,in my estimate, (so their existence is no longer an issue for the good market peg behavior).
-Why yesterday? Combination of several beneficial conditions - the new versions fixes (supposedly) the wrong yield calculations for the shorts; possibility to short at low interest rate, that the market presented;


Now if the above is all true the observations and questions that remain for me are:
It seems that the increase in the supply of bitUSD happened mainly during the last price drop of BTSX... Why those people still remain in bitUSD? I have several theories (aside from the most obvious one) but none of them is anywhere provable or too interesting.

@Svk - I believe you link is to the opening of a short order not to the execution of one.
« Last Edit: October 28, 2014, 01:55:36 pm by tonyk »
Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

Offline matt608

  • Hero Member
  • *****
  • Posts: 878
    • View Profile
How dumping BTSX get you profits from shorting bitusd?

My understanding is that if BTSX are dumped their price to usd will fall, so someone shorting bitusd (expecting usd to fall vs. BTSX) will lose.

Oh right yes I'm mistaken.

Someone with a large position is quite bullish about the future value of BTS...

So the big shorting action increasing bitUSD market cap is just because someone thinks BTSX will rise?  But someone had to buy that bitUSD didn't they.  And those people must think BTSX will go down so they buy bitUSD to protect themselves. So overall is increase in bitUSD market cap just means people are hedging, placing their bets within the system, not necessarily that any new money is entering?

Until there are on/off-ramps from fiat to bitUSD, each bitUSD created from shorts must be bought using BTSX on the Bitshares-X trading platform. So my understanding would be that any matched short definitely doesn't mean new money came in. The only way to have new money coming in the ecosystem would be through BTSX on the centralized exchanges. I'm no market expert, but that would be my interpretation.

Ok that makes sense, thanks.