Apr 142014
 

Vircurex Frozen Balance

Vircurex is one of the oldest cryptocurrency exchanges, and was established way before the explosion of altcoin exchanges that happened in the last few months. There was a time when the only real options for altcoin trading were btc-e, Vircurex and Cryptsy. However, today Vircurex has fallen out of favor, and not without some good reasons. A few months ago, it was hacked and was fraught with some lost customer funds. Since then, it has come up with a plan to replenish the accounts of users, but that hasn’t been going on very well either, and lots of funds still remain frozen, even as volume begins to dry up.

The promised that the account-freezing was a one-time action and wouldn’t be applicable for new deposits (obviously). Many believe Vircurex was being operated as a fractional reserve, and it doesn’t seem to get too many people in the community to like it very much. However, it has continued to operate after that one-time freeze, the idea being that it would make full the lost amounts through the fees earned.

Now, it seems like this plan might not have worked out too well, and now Vircurex is further trying to entice the community with an interest on deposits. They promise 15% of all fees collected to be returned as interest to select accounts that hold, well, basically a lot of money. Here’s their announcement:

You can now earn interest on your deposits. Every 6 hours we will pay out 15% of the earned trade fees to account holders who hold at least 1 BTC, 100 LTC, 400 PPC, 1,500 NVC, 10,000 WDC respectively. The amounts will be paid out proportionally to the total account balance. We take a snapshot every 6 hours and pay out based on the account balance at that point in time. We reserver the right change the schedule without prior announcement.

This feature is currently limited to BTC, LTC and PPC; for the next 3 months. Should sufficient interest be shown, we may extend it to other coins as well as extend the time frame.

It is a bold move for sure, but is it enough to bring back the traders who have left this exchange for others that are far more stable and have better liquidity and support and activity and less risk of accounts being frozen? Well, we’ll have to wait and see. If Vircurex is able to return all the customer funds that are frozen, it would be a strong move that might entice people back, but in order to do so, they need more trading volume to begin with. They’ve started trading BTC against the USD and EUR, but the volumes remain low. They’ve also added new markets for Auroracoin and Zetacoin as well in order to try to improve trading volume.

Personally, I have 3.78 LTC frozen on Vircurex, which is a fairly small amount that doesn’t affect me so much if I lose. I would definitely be hesitant to put more money into Vircurex at this stage for trading. However, as an exchange, I’ve used Vircurex on and off for a long time and the overall experience has been very smooth with no lags even during peak trading activity. That seems to be a secondary concern to losing your funds though.

What do you think of Vircurex? Which is your preferred altcoin exchange?

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Apr 042014
 
Confessions of a Bitcoin Convert

This is a guest post from Joe Towner. Enjoy the read, and don’t forget to comment! When I first started researching Bitcoin to write a guide for small businesses, my knowledge of the technology and its applications were minimal. I understood the basic idea of a virtual currency, was baffled by the actual process of [...]

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Mar 312014
 
Get Ready for the Crypto Currency Convention in New York

Lots of things have happened since we first wrote about the first Crypto Currency Convention in New York that focuses on all crypto-currencies and not just Bitcoin. This conference will probably set a precedent for future crypto-currency events, and people in the community are watching closely. I am happy to report that the conference has [...]

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Mar 292014
 
Bitcoin Insurance is Trickier Than You Think

With Bitcoin going more and more mainstream every day (irrespective of the price. Seriously, stop obsessing about the price, up or down!), as a financial instrument (currency/commodity/thing of value/I-have-no-idea-what-it-is-but-I’ll-speculate) it’s only a matter of time before Bitcoin insurance comes along. Well, it sort of already did, and it’s a matter of time before bigger players [...]

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Mar 272014
 
Bitcoin Tug of War

A quote from Mark Andreessen during the CoinSummit in San Francisco caught my eye – “My prediction is that the Libertarians will turn on bitcoin in two years. It will be part of the mainstreaming.” It is amusing to me, considering Bitcoin has such a rich history already. Also, this comment appears to me to [...]

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Mar 182014
 
How to Buy & Sell Auroracoin: Auroracoin Exchanges

Here’s a comprehensive guide on how to buy Auroracoin and sell them, mostly on Auroracoin exchanges. Auroracoin really started the trend of ‘National Cryptocurrencies‘. The idea is to pre-mine 50% of the coin and distribute it to the people of Iceland. It’s a neat idea with some potential, but Auroracoin seems to have taken off [...]

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Mar 162014
 
How to Buy Bitshares

This guide on how to buy Bitshares will help you navigate the messy world of Bitshares and dealing with exchanges from where you can buy them. If you’re new to Bitshares and the concept, or to know more about Bitshares, read my detailed guide on what is Bitshares. Also, this is a document that I’ll [...]

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