Bitfinex Update

Bitfinex Update

Bitfinex appears to be back up as of right now, although with limited functionality. Trading, depositing, and withdrawing are temporarily disabled. Bitfinex states they will be enabling full platform functionality in the coming days.

Nonfunctioning Exchange

I’m curious to know just how much of our funds on the exchange at the time will be made available to us when the dust settles. The Bitfinex hack illustrates a major point we’ve been hammering in. That is many platforms and services built around Bitcoin and cryptocurrency are susceptible to going defunct at a moments notice for multiple reasons. That they should be viewed as a temporary medium for conducting a specific function such as trading or lending out Bitcoins. We would advise strongly against concentrating the bulk of one’s crypto coin holdings on one specific exchange or medium for a long period of time. A properly constructed paper wallet, in our opinion is among the safest form of storing alt-coin.

Coming back Slowly but Surely?

Also I am surprised at how quickly it took for the main interface of Bitfinex to be made available. However without the ability to redraw the funds we still remain skeptical. There is an article out on crypto coin news purporting the founder of Bitfinex as someone who is linked to a Ponzi Scheme. We don’t have all the facts just yet to make a definitive ruling but let the information available help you formulate your own conclusion.

All Investments Bear Inherent Risks

I was and still remain of the camp that my money is gone from Bitfinex. Perhaps my ability to write off this as a bad investment is due in part that in terms of percentage the amount we have on there is fairly low making this loss easier to stomach. If a bulk of our crypto coin holdings were tied up this loss would be much more difficult to come to grips with. I would imagine we’d be trying to get in contact with customer service there or somebody to alleviate the fears of our loss. Bitfinex officials have stated they are going to spread the losses amongst all the user accounts.

Stay Tuned for Updates

I believe we’ll know for sure whether or not monies held on Bitfinex will be recovered in the days and weeks to come. Hopefully us Bitfinex users are able to collect at least 70 cents on the dollar or more. We’ll all just have to stay tuned and see whats in store. This exchange seemed so well done and was running like a well oiled machine, until it wasn’t. This episode goes to show you there is no free lunch. All investments whether traditional or non traditional bear some form of inherit risk. If there was such a thing as a sure thing everyone would be lining up to do it and we’d all be wealthy. Obviously it doesn’t play out like that. So saddle back up enjoy the wild ride that is yet to come in your own alt-coin adventure journey.

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