Difference between revisions of "Bitcoinica"

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An exchange that allows speculation on the Bitcoin to USD (BTC/USD) exchange rate using leverage.
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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 was launched on September 8, 2011<ref>[https://bitcointalk.org/index.php?topic=42267.0 Bitcoinica - Advanced Bitcoin Trading Platform]</ref>.  At the time leverage offered was 5:1 though on November 19, 2011 the service dropped the default margin requirement level to 2.5:1[http://bitcointalk.org/index.php?topic=52092.0 Bitcoinica changes default leverage to 2.5:1 for everyone].  The level may raised to 5:1 by placing a request via email.
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==History==
  
The service charges no trading fees but instead earns from the trading spread -- similar to how forex trading functions.
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The service was launched on September 8, 2011<ref>[https://bitcointalk.org/index.php?topic=42267.0 Bitcoinica - Advanced Bitcoin Trading Platform]</ref>.  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<ref>[http://bitcointalk.org/index.php?topic=66979.0 Bitcoinica lost 43,554 BTC from Linode compromise, suspicious TXIDs publicized]</ref>.  
 
 
Caution is recommended for those not familiar with leverage and/or forex trading.
 
  
Funds may be added in the form of either MTGUSD or Bitcoins.  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.
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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==
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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
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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==
 
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[[Category:Defunct products or services]]
[[Category:Exchanges]]
 

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