Reddcoin After Cryptsy

Cryptsy currently holds about 12.5% of all Reddcoin supply in the listed sell orders. This represents the majority of all Reddcoin available for sale on market. Rumors based on the coinfire article claim that Cryptsy is under federal investigation. While Cryptsy denied these accusations they have also since implemented additional identity verification requirements as well as withdrawal limits.

Without affirming the coinfire accusations, we should consider how the implications. could affect our community.

Assuming a worst-case scenario for Cryptsy in which they ordered to stop doing business and/or in which all assets are seized or frozen:

  • What would be the effect on Reddcoin and Reddcoin Price?

  • What can the community do now to protect itself from these possible scenarios?

Assuming a best-case scenario for Cryptsy:

  • Is it in the best interest of any coin for a private exchange to be in possession of 13% of all issued coins?

  • What is a safe amount of the market cap for one exchange to posses?

In my honest opinion if Cryptsy failed it wouldn’t be a big deal for the project overall. For anyone losing funds on Cryptsy it could be a very big deal of course.

I think the biggest problem facing cryptocurrencies is adoption. This is the potential killer - dwindling adoption.

Think about it - Bitcoin exchanges are hacked left, right and centre, including the loss of 7% of all BTC in existence at Gox. None of that means the end of Bitcoin.

The whole crypto ecosystem is in alpha - totally experimental. I don’t think it is possible to give a meaningful answer to the questions regarding how much coin an exchange should possess. But perhaps I’m wrong and someone can give a good answer to that.

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OctopusPrime
Generally speaking you could say these are not Cryptsy owned coins.
They are stored there for the purpose of trade.
Therefore, if this were to happen, there are going to be a lot of sad people who decided to hold their coins on an exchange
Time and time and time again, it has been said… don’t store your coins on an exchange

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The sad reality is with most current exchanges, if you want to operate as a price maker rather than price taker, that means you have to leave enough coin in your exchange wallet to cover the orders you have on the order book. For liquid coins it’s good business because as a maker you make the buy sell spread rather than losing it as a taker. But the risk is the exchange going tits up with your coin. Roll on fully decentralised exchanges … or at least some kind of escrow multisig with timed release to originator.

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OctopusPrime I stopped trading on Cryptsy 1 month ago after 2 years trading there.
I am of the opinion that its better to be safe than sorry. Sadly I have had to put my purchase plans for Reddcoin on hold until I find a place that seems as least as ‘‘safe’’ to use.
This means 2FA and SMS messages etc.

I just signed in and the buy side shows 4Btc at 2 Satoshi 31BTC at 1 Satoshi some one is looking to make a killing.

Redshift You will be buying at a good price (anyone for that matter)

Gnasher Seriously tempted to one more trade there…

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would it really be a good price to buy? A lot of people would consider RDD hitting 1 sat to be it’s death knell. I hold 10+ million RDD and I am wondering if you all really believe that the price will ever hit 10 sats again? I hope so but I have to say I feel hopeless. Damn Laudney…

equivexchange
I believe in this project. And I will also be the first to say without a doubt that it needs revitalising.
I think there is a place in this space for a product like Redd.
As you know there are a couple of social tipping platforms already. But I don’t believe that their model is the right one for this market.

Presently, i am either rebuilding or co-ordinating some of the infrastructure so that we have some resilience.

Technically the core product is sound.
It needs a freshening with some new features, but what we have works.
What is needed is for those outside the core team to build onto that.

We are not hosed yet,
There are a number of 3rd party developers who are building products that incorporate Reddcoin.
The goal is to continue to work with those outside developers to encourage them to make sure that Reddcoin is included

If you are holding 10+MM, great
With that amount you should be staking relatively often each day (as long as your wallet is active)
I wish everyone’s aim was to have at least 10+MM in their wallet.
It would create a nice spread, and at todays price, that is about $100 USD to get going

My question to you (or everyone for that matter)…
Apart from a price rise, What would you like from Reddcoin (functionality, feature, opportunity, etc)

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I honestly would not be surprised if cryptsy put up a delisting notice soon
24hr Volume:2695398.46 RDD/0.08 BTC

Sadly I highly doubt anything can save this coin now :frowning:
It had such promise in the start

BrownSlaughter you are only looking at the last 24 hours normally the trade volume is fine :slight_smile:

Gnasher Thank you for responding Gnasher…What I would really like would be for /r/reddcoin to be revitalized. The block halving parties and events were really special and generated a lot of hype and interest. those were the good ole days…

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equivexchange I don’t disagree with that statement at all.
As much as reddit can be a pain in the rear end for trolling, I would love to be able to attract back a large group of participants.
IMHO reddit is just another location in a long list. and in fact, communication should happen on a number of different channels.
In the background it is being discussed as to how to better extend our social media coverage
What I want to avoid is the expectation that the core group is available 24/7 to respond
That will be counter productive to keeping development moving forward

On that note,
Lets consider how best to revitalise and attract participants back to the Reddcoin reddit.
Bear in mind that these do take effort to pull off, and i don’t want just blatant spruiking into other subreddits
That is the quickest way to lose an audience and has been a criticism in the past
The efforts should be co-ordinated and vetted to be effective

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Rumors floating around that Cryptsy has some problems with FBI…

SZarro rumour has it I am hung like a horse… That was a rumour made up to benefit me.
Most rumour benefit someone and thats why they start them

I like rumours,
But I only like rumours because they help me search for the truth.

Repeating rumours only plays into the hands of those who initiated in the first place.
If you have some facts, you have my attention.

That said, with the history of numerous exchanges disappearing or closing.
Tread warily if you don’t want to lose.

I dont trade, but i do take a casual look at the order book from time to time.
It looks like the sell orders have reduced by half in recent weeks??

Anyone observed this, or is my glance too casual this time

BrownSlaughter said:

SZarro rumour has it I am hung like a horse… That was a rumour made up to benefit me.
Most rumour benefit someone and thats why they start them

I agree. But Cryptsy is well known for freezing customer accounts and delaying withdrawal requests. And it looks like that situation becomes even worse.

You must be one of those poor souls that has his business hanging down in that BLUE water all the time! I belong to the blue balls group myself!

is the Cryptsy rdd wallets opened up for withdraw?