ICBIT: Difference between revisions

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−''''' There are reports of dishonest practices at icbit.'''''−
-Accusations include:
'''a)''' prices of futures contracts on icbit are deliberately manipulated,
'''b)''' contract prices do not trade purely based on bitcoin price movements and speculative pressures but largely on manipulations unrelated to bitcoin price and
'''c)''' website management encourages these manipulations, allowing larger traders to effectively strip funds from smaller traders.
There are quite a few other indicators of ethical problems at icbit. Another example is the apparent use of multiple user id's by people associated with the site to 'pump' the site. A person interested in this issue would be advised to look at the dates that various profiles that support the site were registered on bitcointalk.org.
One more indicator is the fact that a significant number of people who support the site all improperly use certain trading terminology the same way. For example if you search the terms contango and backwardation on bitcointalk.org most of the results lead to the same group of 'supposedly different' people who each uses the words improperly to try to explain away price manipulations.
Backwardation and contango are real trading words but several of the people using those words in reference to icbit do not understand the actual meaning and how a real trader would use the word. This is one of a few examples of 'icbit supporters' who seem to be pretending , as they encourage others to invest. It seems too that 'several' of these people, all misusing the same words in the same ways, are not actually 'several' at all, but perhaps the same person.
At least three traders with knowledge of derivatives have pointed out what appear to be deliberately corrupt practices on the website.
-Icbit did return a substantial amount of bitcoin to one experienced trader who made a detailed webpage describing corrupt practices. http://trilema.com/2012/icbitse-the-bucket-shop/
This wiki page edit is by a second trader with experience in derivatives who quit the site after noticing dishonest practices and who then requested a refund. The practices that justify a refund are detailed with screenshots and detailed explanations at https://bitcointalk.org/index.php?topic=246845
−The owner of icbit has so far refused to answer complaints publicly.
-Traders would also be advised to review discussion and edit notes for this wiki page to see how the owner of icbit operates.−<ref>[http://polimedia.us/trilema/2012/icbitse-the-bucket-shop/ Article by Mircea Popescu, proprietor of MPEx]</ref> <ref>[https://bitcointalk.org/index.php?topic=125376.0 Bitcointalk "bucket shop" thread]</ref> <ref>[https://bitcointalk.org/index.php?topic=246845 Bitcointalk "icbit warning" thread]</ref>
−'''Please do not invest any money at icbit until you understand the issues raised in the complaints and/or the alleged dishonest practices have been changed. If you are not sure please ask questions in a public forum like bitcointalk.org and do not give any money until all questions are answered to your satisfaction.'''
ICBIT is a trading website which runs a few markets. Both the Exchange and Futures markets are live now.
ICBIT is a trading website which runs a few markets. Both the Exchange and Futures markets are live now.


Revision as of 20:41, 15 September 2013

ICBIT is a trading website which runs a few markets. Both the Exchange and Futures markets are live now.

This site is said[source?] to be founded by Fireball and DeepBit by combining best practices in high-performance trading and Bitcoin experience.

ICBIT is not an exchange since it does not act as a central counterparty. According to their website users are totally exposed to counterparty risk from other traders whose identities are concealed from them; the exchange does not pledge its own assets to back the full extent of the other side of a customer's position -- it pledges only "as much to profiting traders as loosing traders lost (in total)". Traders are not allowed to conduct background or reputation checks of any kind on these anonymous counterparties. ICBIT recently modified the linked page and it now contains self-contradictory information, such as "we do pledge our own assets, it's not always the case" and "your profitable position will be closed" at whatever price the exchange deems convenient rather than value-at-maturity. Since the exchange pledges only "as much to profiting traders as loosing traders lost (in total)" it is, by definition, not the counterparty -- the "loosing [sic] traders" are the counterparty.

Features

For its currency exchange section ICBIT makes an accent on the following:

  • State-of-the-art technologies usage. Instead of using old, slow, polling-based algorithms ICBIT builds atop of the most up to date technologies. Its web trading client is in pure HTML and JavaScript (even compatible with most mobile devices), however it's fully realtime thanks to websockets and AJAX.
  • Speed of trading. Bitcoin forum is full of anger against slowness of existing exchanges. ICBIT implements special high performance trading engine and uses high-performance "no SQL" database to eliminate the problem.
  • No limits. Most of the existing exchanges put rather restrictive limitations and require users to prove their identity. ICBIT finds this totally unacceptable and does not put any limits at all.

Futures

Futures traded include:

Futures contracts on USD/BTC rate

  • BUQ3 (expires August 15, 2013, settled in BTC)
  • BUU3 (expires September 16, 2013, settled in BTC)
  • BUV3 (expires October 14, 2013, settled in BTC)
  • BUZ3 (expires December 16, 2013, settled in BTC)

Futures contract on Bitcoin difficulty

  • DFU3 (expires September 16, 2013, settled in BTC)
  • DFZ3 (expires December 16, 2013, settled in BTC)

Futures contract on LTC/BTC rate

  • LBU3 (expires September 17, 2013, settled in BTC)

Futures contract on S&P500 index

  • ESU3 (expires September 16, 2013, settled in BTC)

Settled futures:

  • BUZ2 (Futures contract, expired December 15, 2012, settled in BTC)
  • BUH3 (Futures contract, expired March 15, 2013, settled in BTC)
  • CLG3 (Crude Oil Futures contract, expired February 14, 2013, settled and quoted in BTC)
  • GDG3 (Gold Futures contract, expired February 14, 2013, settled and quoted in BTC)

Exchange

Traded on the exchange are:

  • BTC/USD
  • BTC/RUB (Russian Ruble)


Adding Funds

BTC

There is no fee for Bitcoin deposits to the account's BTC EWallet. Funds are added to the account's wallet after six (6) confirmations. Transactions made by DeepBit mining pool are added instantly.

USD

There are no methods to add USD funds.

RUB

QIWI vouchers can be used to add funds to an account's Russian ruble EWallet.


Widthraw Funds

BTC

There is no fee for Bitcoin withdrawals from the account's BTC EWallet.

USD

There are no USD withdrawal methods.

RUB

Funds can be withdrawn from the account's Russian ruble EWallet as QIWI vouchers.

Security

Accounts can be protected where both login and any money withdrawal operation requires the one-time password (OTP) feature known as two-step authentication. A mobile smartphone with Google Authenticator is the most commonly used OTP device.

History

First mentions of ICBIT appeared in June and July 2011 in the Bitcoin Stock Exchange Security Standards thread at bitcointalk.org[1] and Bitcoin futures market discussion [2]. By that time a very first version of the trading engine was developed.

A more detailed thread specific to ICBIT futures market was started [3] in November, 2011. The first closed test of futures market was performed, and work on the new version of web trading client was started.

Finally in January, 2012 the currency exchange section went live [4]

See Also

External Links


References

  1. ↑ Bitcoin Stock Exchange Security Standards thread
  2. ↑ Fireball's statement about ongoing futures exchange work
  3. ↑ ICBIT derivatives market thread
  4. ↑ Bitcointalk announcement of a new exchange live testing
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