Bitcoinica: Difference between revisions

Latest revision as of 22:59, 6 May 2014

Was an online service that enabled leveraged speculation in its contract-for-difference (CFD) market against the Bitcoin to USD (BTC/USD) exchange rate.

History

The service was launched on September 8, 2011^[1]. On March 1st, 2012 the site suffered a significant financial loss when a web hosting had an internal security breach that gave the attacker access to a wallet in which Bitcoinica stored funds. More than 43K bitcoins were stolen by the attacker. The operator provided a statement that reserves were sufficient to cover the loss^[2].

Announced on April 20, 2012 was that Bitcoinica had "reorganized" and was now operated as Bitcoinica LP and had become a registered Financial Services Provider^[3].

On May 11, 2012 Bitcoinica suffered for the second time a security incident in which a large amount of coins were stolen from its hot wallet^[4].

On August 1, 2012 the Wendon Group investment fund as creditor to Bitcoinica LP announced that it will appoint a receiver under New Zealand law^[5].

References

[1] Bitcoinica - Advanced Bitcoin Trading Platform

[2] Bitcoinica lost 43,554 BTC from Linode compromise, suspicious TXIDs publicized

[3] Bitcoinica is now a registered Financial Services Provider!

[4] Bitcoinica site is taken offline for security investigation

[5] Bitcoinica Consultancy abandons customers. Bitcoinica to enter Liquidation

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[3]

[4]

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@@ Line 1: / Line 1: @@
-An exchange that enables leveraged speculation in its contract-for-difference (CFD) market against the Bitcoin to USD (BTC/USD) exchange rate.
+Was an online service that enabled leveraged speculation in its contract-for-difference (CFD) market against the Bitcoin to USD (BTC/USD) exchange rate.
-The service charges no trading fees but instead earns from the trading spread -- similar to how forex trading functions.
-==Leverage==
-Caution is recommended for those not familiar with leverage and/or forex trading.
-The default margin requirement level is 2.5:1<ref>[http://bitcointalk.org/index.php?topic=52092.0 Bitcoinica changes default leverage to 2.5:1 for everyone]</ref>.  The level may raised to 5:1 (or higher) using the self-service settings function.
-Leverage from funds added using bitcoins can purchase an even larger Bitcoin (long) position<ref>[http://www.bitcoinmoney.com/post/11583434953 Bitcoinica - Leveraging Your Bitcoins To Buy ... More Bitcoins]</ref>.  Similarly, funds added using USDs can be used to sell (short) bitcoins without already having bitcoins.
-==Depositing Funds==
-===Bitcoins===
-* Bitcoin transaction.  Deposit transactions are credited after six confirmations.
-====Redeemable Codes====
-Credited and available for use instantly.
-* Bitcoinica Redeemable Code (BTC).
-* [[MtGox Mt. Gox]] Redeemable Code (BTC).
-===USD===
-====Redeemable Codes====
-* Bitcoinica USD redeemable codes
-* Mt. Gox USD redeemable codes are accepted for deposit.
-====Internationial Wire====
-* Funds (USD) may be wired to Bitcoinica's bank account in Singapore.
-* Funds through [[AurumXChange Company]] are then deposited as a Bitcoinica USD redeemable code.
-====Cash deposit====
-Deposits at thousands of banks can fund a Bitcoinica USD redeemable code (fee applies).
-====Liberty Reserve====
-[[Liberty Reserve]] USD and other e-currencies can be converted to a Bitcoinica USD redeemable code at through AurumXChange.
-===EUR===
-SEPA Euro transfers can be used to fund a Bitcoinica USD redeemable code through AurumXChange.
-===GBP===
-GBP wire transfers to a U.K. bank can fund a Bitcoinica USD redeemable code through AurumXChange.
-===Other E-Currencies===
-E-Currencies including Liberty Reserve, HD-Money, [[Pecunix]], PerfectMoney, and others are accepted at AurumXChange and can be converted to a Bitcoinica USD redeemable code.
-==Withdrawing Funds==
-===Bitcoins===
-* Bitcoin transaction.
-====Redeemable Codes====
-* Bitcoina Redeemable Code (BTC)
-* Mt. Gox Redeemable Code (BTC)
-===USD===
-* Bitcoinica USD redeemable codes can be redeemed at AurumXChange.  USD funds may be used for a bank wire transfer or to load or reload funds for the AurumXChange MasterCard.
-* Mt. Gox Reemable Code (USD).
-* BitInstant. For transferring funds to other exchanges.
-===EUR===
-Bitcoinica USD redeemable codes can be redeemed at AurumXChange and then withdrawn as a bank wire transfer in the SEPA Eurozone.
-===GBP===
-Bitcoinica USD redeemable codes can be redeemed at AurumXChange and then withdrawn as a bank wire transfer to a UK bank.
 ==History==
@@ Line 87: / Line 7: @@
 Announced on April 20, 2012 was that Bitcoinica had "reorganized" and was now operated as Bitcoinica LP and had become a registered Financial Services Provider<ref>[http://bitcointalk.org/index.php?topic=77523.msg861805#msg861805 Bitcoinica is now a registered Financial Services Provider!]</ref>.
-==External Links==
+On May 11, 2012 Bitcoinica suffered for the second time a security incident in which a large amount of coins were stolen from its hot wallet<ref>[http://bitcointalk.org/index.php?topic=81045.0 Bitcoinica site is taken offline for security investigation]</ref>.
-* [http://www.bitcoinica.com Bitcoinica] web site
+On August 1, 2012 the Wendon Group investment fund as creditor to Bitcoinica LP announced that it will appoint a receiver under New Zealand law<ref>[http://bitcointalk.org/index.php?topic=97272.0 Bitcoinica Consultancy abandons customers. Bitcoinica to enter Liquidation]</ref>.
 ==References==
 <references />
+[[Category:Defunct products or services]]
-[[Category:Exchanges]]
-[[Category:Investing]]

Bitcoinica: Difference between revisions

Latest revision as of 22:59, 6 May 2014

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References

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