During the great crash, the “trusted” nubot custodians had millions
worth of BTC dumped on them. They did not hedge these BTC as evidenced
here: Possible solution to custodian loss of value due to BTC exposure
Bottomline: THE NUBOTS ARE INSOLVENT AND NUBITS IS OPERATING AS A FRACTIONAL RESERVE!!!
a desperate attempt to make back the huge amounts of money lost due to
BTC exposure, the “trusted” custodians have now resorted to widening
their nubot spread to 5%, hoping they can make the lost funds back
before there is a run on the bank. THIS IS AKIN TO MARK KARPELES
CONTINUING TO RUN MTGOX FOR YEARS AFTER IT BECAME INSOLVENT AFTER A
HACK, hoping to make back the lost funds on the trading fees.
BE THE PERSON WHO IS LEFT WITH WORTHLESS NUBITS WHEN THE BTC RESERVES
RUN DRY! Get your money out of NuBits NOW, and if you still want to
hedge against BTC volatility then get into BitUSD. The market on
bter.com is now active and the spread is around 5%, the same as nubits
(this is real volume, not fake bot volume btw). https://bter.com/trade/btc_bitusd
If you want to know why BitUSD is safe and Nubits aren’t, check this out: http://bitsharesblocks.com/assets/market
Notice the COLLATERAL, the single most important thing when you want to
guarantee a peg. BTS took a beating in the crash too, but notice that
BitUSD, BitCNY, BitGOLD is still collateralized with more than 200% of
their market value. This is the primary market for their collateral: http://www.btc38.com/trade.html?btc38_trade_coin_name=bts NOTICE THE HUGE ORDERS OF NON-BOT NON-FAKE BUY AND SELL WALLS.
had noble intentions when they started their coin. The idea of a
stable, pegged cryptocurrency is the holy grail to enable wider crypto
adoption. They never meant to run the system as a fractional reserve
ponzi, but that is unfortunately what has happened as they apparently
hadn’t prepared for a crash in BTC value. It doesn’t matter how you try
to rationalize it, the following statement cannot be refuted with
anything less than a cryptographic proof of solvency:
NUBITS = FRACTIONAL RESERVE = MTGOX.
be the guy stuck with nubits when they start offering interest rates to
"park" the nubits, because they know real nubits demand isn’t high
enough so they have to artificially stimulate it. That’s when you know
they are getting really desperate and the peg will soon break. GET. OUT.
NOW. This is NOT going to be pretty.
Any comments about the above criticism? Seems like some heavy attacking against Nu.