The cryptocurrency market has had its fair share of controversies, with the latest report from Cointelligence speculating that HitBTC, a popular cryptocurrency exchange, might be insolvent. Cointelligence has claimed that HitBTC has only $3 million in Bitcoin [BTC] and Ethereum [ETH] across its wallets. This information was provided by a cryptocurrency organization called Coinfirm.
The report has covered four different areas where HitBTC’s data did not match up to what was expected: proof of reserves, withdrawal issues following its new KYC/AML policy, increased withdrawal fees as well as the company’s team.
In its report, Cointelligence stated,
“The first list of proof of reserves provided by Coinfirm and the AMLT Token Network on the 8th of April showed that HitBTC is holding 245.20 BTC in their hot and cold wallets, clusters at block height 570159 clustered at block height 568918.”
Three snapshots were conducted to calculate the total trading volume on HitBTC. They revealed that Bitcoin pairs amounted to $537 million and Ethereum trading pairs amounted to $155.79 million. When compared to other exchanges like Kraken, Bittrex, and Poloniex, the disparity between the proof of reserves and BTC trading pair volumes in HitBTC were significant.
Another major issue addressed by Cointelligence was the withdrawal fee hike that coincided with the new KYC implementation on the platform. The report said,
“Ironically, they use the pretense of a best practice known as Know Your Customer (KYC) as a masquerade to seemingly swindle funds on an indefinite basis, refusing requests for a refund. Name, address, citizenship and photo ID are all ways in which KYC can be implemented – it seems that HitBTC’s no ID policy was designed to get customers on board before the u-turn gave them a convenient excuse to freeze accounts.”
The cryptocurrency research website further added that they had contacted a user who complained about HitBTC and its reluctance to release funds from its roster after the new KYC/AML update. This issue was raised earlier by another user too, stating that a lot of users were facing trouble while withdrawing their virtual currencies for a couple of weeks.
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Bitcoin’s censorship resistance, freedom make it a game changer in the economic industry
Over the years, the global economic industry has witnessed significant changes. However, no change has been more significant or essential than the one introduced by the concept of virtual assets or Bitcoin. Today, Bitcoin and other virtual currencies are almost as essential as fiat money and despite the fact that digital assets have not reached worldwide adoption, the pace of growth has been substantial.
In a recent panel discussion, Jedidiah Taylor, CEO and Founder of Decent.Bet, the smart contract-based sports betting platform, stated that the idea of Bitcoin and blockchain technology projected a perspective of freedom and honesty which allowed individuals to have direct control over their own capital, without any oversight supervision from financial institutions.
The sentiment was followed by Nico De Jonghe, Founder and CEO of NDJ Investment Group, who added that the threat of decentralized assets loomed the largest over centralized institutions like banks, who were worried of the future prospects offered by Bitcoin and its impact on the long-term financial situation.
Tone Vays, a reputable analyst and Bitcoin proponent, opined and stated that Bitcoin’s biggest strength was the fact that it was completely “unconfiscatable” and that one’s BTC is completely safe if it is protected and secured with attention. The characteristic of censorship-resistant value transfer is also an absolute game-changer for Bitcoin, allowing it to competitively exist in the financial system.
The value of Bitcoin has often been criticized in the past, but its valuation has consistently proven its worth. In fact, Bitcoin has grown by more than 150 percent in 2019.
At press time, Bitcoin was priced at $11,371, with a market capitalization of over $202.18 billion. The staggering valuation of an asset that was unheard of 10 years ago, further underlines the potential of Bitcoin in the current market scenario and for the future economies.
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