Coincheck Duped Users into Zero-Fractional Reserve Trading

Japanese exchange Coincheck is coming under intense public outcry over comments disparaging poor people by the CEO, as well as over allegations the exchange offered trading in the NEM cryptocurrency without holding any tokens in reserve.

結論から言えば、17年4月19日から日本の顧客に向けてNEMの取り扱いを開始したとアナウンスしてるのですが、実際に海外取引所PoloniexからNEM/XEMを購入したのは17年6月12日です。

それまでの2か月間、顧客からの買い注文通りにPoloniexと取引されておらず、顧客にも引き渡されていないことになります。

According to an article on Yahoo! News Japan, Coincheck listed NEM on its platform on April 19 of last year.

Starting the following day, users could interact with the exchange to buy and sell the tokens through market and limit orders, just like any in any other exchange or trading platform.

There was one defining difference, though, namely the fact no actual NEM changed hands during that period; user account balances merely an entry in Coincheck's internal ledger.

In effect, for a period of two months, from April 19 to June 12, Coincheck maintained a fictitious market.

Even after this period, all the exchange was doing was buying on Poloniex, to then turn around and sell those same tokens at an 8% premium to unsuspecting investors on their platform.

The worst thing is that I think these types of shenanigans are a daily occurrence at a number of exchanges throughout the world.

With a society bursting at the seams with money-hungry psychopaths, it's almost a statistical certainty that a few of these critters will inevitably crawl or slither their way to power.

Mark Karpeles is no saint, but Mt. Gox was already insolvent when he took over. He was made into a patsy, and left holding a ticking time-bomb, so it's not that hard for me to see him in a vaguely sympathetic light.

Mr. Wada, CEO of Coincheck, on the other hand, is just a high-functioning psychopath with no redeeming qualities.

安全なオフィスの中から外の困ってる人を見るカイジみたいな遊びをしてる

Who could possibly defend a man who has no qualms about admitting he ”enjoys looking down from his office tower at the populace living in poverty below?”

When will people wake up to the reality that exchanges cannot be trusted? Leaving any significant amounts of cryptocurrency on an exchange is anathema to the ethos of Bitcoin, which is restoring individual sovereignty.

Exchanges can fail at any moment. Moreover, in a majority of cases, the fee structure is merely designed to siphon off as much money as physically possible from those poor souls who fall victim to over-trading.

To reiterate, exchanges are not your friends. They are useful as on-and-off ramps to fiat, and to trade altcoins for Bitcoin and Ethereum, while we wait for trust-less alternatives in the form of fully decentralized exchanges.

That's it! Centralized exchanges run by narcissists with delusions of grandeur cannot be trusted.

Don't trust. Verify!