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Bitcoin [BTC] exchange Gatecoin shuts down after exchange fails to recover from financial complications

Biraajmaan Tamuly

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Bitcoin [BTC] exchange Gatecoin shuts down after exchange fails to recover from financial complications
Source: Pixabay

Gatecoin, the Hong Kong-based Bitcoin exchange, announced the closure of all operations indefinitely after facing multiple financial complications. The exchange was in liquidation after it failed to recover its losses suffered back in 2016 after a $2 million hack.

The development team announced that its services were suspended after the exchange struggled to stay relevant financially for months.

The exchange also dealt with the disruption of bank accounts after the 2016 hack. In September 2017, the exchange’s Hong Kong-based accounts were taken down and they had remained inactive till the date of the shutdown.

The official statement stated,

“We have suffered financial difficulty over a period time to an extent that we are no longer able to support our operation. The court on Wednesday granted a winding-up order against our company. A provisional liquidator has been appointed and we have to cease operation with immediate effect.”

Gatecoin was launched in 2013 and the exchange was dedicated to Bitcoin, Ethereum and Ethereum-based token markets. During the 2016 hack, the exchange reported that it had lost a total of 185,000 ETH and 250 BTC, worth $2.14 million of investor funds.

The exchange failed to recover the funds, but the company refused to completely shutdown after the incident. The exchange blamed a registered French payment service provider for freezing its operations.



The exchange released the following statement,

“Following our issues with our banking partners in September last year, we started working with a payment service provider [PSP] which is a fully regulated payment institution by the French regulator. However, that PSP failed to process most of the transfers in a timely manner which in turn almost paralyzed our operation for many months and caused a substantial loss on our side.”

The exchange eventually mitigated its losses, but recovery was a little too late. The situation failed to take a better stance after PSP retained a large number of Gatecoin’s funds.





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Biraajmaan is an engineering graduate who is exploring the ever-changing crypto verse while traversing his passion for cryptocurrency news writing. He is a Chelsea fan and a part-time poet and does not hold any value in cryptocurrencies yet.

Bitcoin

Bitcoin [BTC]: Debating on king coin’s transaction speed is a red herring argument, says Charlie Shrem

Akash Anand

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Bitcoin [BTC]: 'Debating about BTC's transaction speed is a red herring arugument', claims Charlie Shrem
Source: Pixabay

The debate around Bitcoin [BTC] and its effectiveness in the current financial atmosphere has been a long ensuing debate in the cryptocurrency industry. The supporters and naysayers of the world’s largest cryptocurrency have locked horns on various aspects of the coin, be it the coin’s characteristic as a store of value or the amount of time it takes to settle Bitcoin transactions.

In a recent tweet, Charlie Shrem, the Founder of Bitcoin.org and one of the most popular Bitcoin proponents, spoke about the topic, directly addressing critics who had a problem with settlement times. His tweet read:

““Transaction speeds” when debating #bitcoin vs other faux-crypto’s is red herring argument. There were plenty of fast ways to move money before bitcoin. That’s not why we’re here. We’re building a censorship resistant value network that can-never be controlled by a single party.”

Bitcoin proponents had always made it a point that the cryptocurrency was never meant for fast transactions, but rather to compete with Gold as the standard for a ‘store of value’. Even Samson Mow, the CSO at Blockstream had earlier claimed that BTC was never meant to be fast by adding:



“If you want money, it does not need to be very fancy, and a lot of the altcoin projects; I don’t wanna go into it but they are just based on gimmicks. What you really want is sound money, something which is reliable and bulletproof.”

The ‘BTC is not effective’ camp had responded voraciously many a time by stating that something aimed at changing the financial dynamic should be nothing short of fast or else there was no way it could become an effective form of value. This rebuttal for this argument was that Bitcoin’s goal was to create a cryptocurrency integrated mainstream structure and even though it was not lightning fast, the transaction speed of Bitcoin was still faster than that of current methods like Visa and MasterCard.

Charlie Shrem was also in the news recently when he stated that when Mt Gox imploded, the market created the first “token as debt”. The statement was made in connection with the massive loss of funds which occurred following the hack of the then largest cryptocurrency exchange.





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