Earnings - Earnings fell from 0.67% last week to 0.58%, a decline of 0.09%. Unfortunately the collapse of Crptsy has left many traders with losses and a large volume of altcoins dumped on other exchanges (see our Q&A below). At the same time the price of bitcoin has now retraced to that of early December, and as a result earnings, on a slight rise through Thursday, slumped at the weekend.
Cryptsy - Cryptsy is closed and we have provided an email notice to clients.
Q. Did we lose any funds on Cryptsy?
A. No, we removed any funds or coins from there over a month ago. In the normal course of business we do not keep anything on exchanges. We usually send funds in and withdraw coins immediately.
Q. What impact did/will Cryptsy's closure have on us?
A. The largest impact Cryptsy has today is on our income, and the ability to sell some altcoins without damaging our holdings from such low values.
Because of the nature in which Cryptsy forced it's users to arbitrate altcoins out of their exchange in order to get the BTC owed to them, it had a large impact on any altcoins that would move off that exchange. Forcing artificial low prices because of the drastic sell pressure. Not only were BTC locked up but so was LTC, Dash, and almost 50% of their coin wallets were in maintenance.
Most traders would have just used LTC or DASH to get out, but it forced other traders who don't normally trade in the altcoin markets to get out using altcoins they most likely never traded before, which pushed them into our markets, coins such as: NET, HYP, DMD, CAP, HBN, CON, BITB, XRA, were all used in this arbitration. TEK was, and is locked up, due to a wallet issues, and people lost a lot of TEKCoins on Cryptsy, including the developer.
Q. How will this affect our earnings and withdrawals?
A. We are working hard to get the best prices for altcoins we sell (earnings). For withdrawals we are holding to the TOS at this time. Usually we can be more accommodating depending on certain markets and given the excess coins we hold. But when the values are this artificially low we do not have much room to do that.
In closing, as a long time client of Cryptsy we had a lot of trust in the team running it, we had a lot of faith in their exchange, and we were loyal in the agreements we made with them, and supported them until they closed. To avoid this issue in the future we will spread our trading across several exchanges.
Contingency Fund - Stakeminers has established and begun funding a dedicated bitcoin fund. It will be used to support our principal and weekly payouts should we encounter further crypto-exchange issues. We will set up a account web page to report on the Contingency Fund holdings and earnings which are separate from the altcoin stake pool.
Client Exchange - We have begun work to establish a client altcoin exchange but we do not yet have a date for its implementation. Given the small size of our exchange trading prices wil be set based on other exchange rates. Again it will only be open to our clients and for altcoins we stake.
Altcoin Wallets - This a reminder that Stakeminers has established separate altcoin wallets for the coins we stake, in order to provide for altcoin deposits by our clients. Please see the 'Wallet Address' page on our site and contact us if you require an address for a specific altcoin.
Thank you and have a good week.
Stakeminers.com is a crypto-currency altcoin Proof of Stake (POS) company with current holdings in 12 altcoins. We provide our clients with a variable rate of return generated from our stake pool earnings.
Please see our website Stakeminers.com or email us at: info (at)stakeminers.com for more information.
Our support service operates on Philippines time, EST+12/GMT-12. We will confirm your email and offer an expected response time, normally within 12 hours.