Quote from: cryptohunter on April 25, 2017, 10:07:21 PM

Quote from: dzimbeck on April 25, 2017, 07:28:09 PM

Quote from: cryptohunter on April 25, 2017, 07:17:03 AM

Quote from: cr197 on April 25, 2017, 01:23:04 AM

Quote from: cryptohunter on April 24, 2017, 09:51:23 PM

Quote from: dzimbeck on April 24, 2017, 06:07:48 PM

Quote from: fluxer555 on April 24, 2017, 03:08:04 PM

Wouldn't exchanges have to cooperate to a high degree here? The coins in each user's accounts usually just correlate to a percentage of some total supply owned by the exchange. If I transfer 100 coins to an exchange right before a 50% freeze, I'll still be able to trade all 100 of my coins, even though the exchange's wallets will have the funds tied up. The problem will be when I try to withdraw, or rather, when more than 50% of their stored funds are withdrawn. It would benefit those who withdrew earlier, and it seems possible that this could avalanche into a bank-run type scenario. In order to avoid this issue, all exchanges would have to artificially implement the coin's logic within their trade mechanics. Thoughts?

Astute observation! Well, first of all the miners enforce it so if exchanges don't pay attention they can become insolvent. With that said most exchanges are corrupt. So there is a few pages of my whitepaper listing multiple strategies for dealing with them. Ideally they run the API and query balance of frozen and liquid with it. The more data they supply about trades the less of a melting pot it becomes.

A user would have two balances frozen and liquid. We can then handle somewhat inaccurate API calls that mix liquidity or super accurate ones that check the trades. The worst case scenario we allow full withdraw with the one month time lock to move the partially frozen chunks but that is only if we get desperate because then like you said people with their money on the exchange early have the unfair edge. You might tempt them with arbitrage elsewhere but really we want co-operative exchanges. There are a few that will work with us I think. We may end up turning a small exchange into a big one.

The other way is rely on decentralized exchanges which literally move the funds like (hopefully) Blocknet or Komodo assuming either of them get popular.

Perhaps we could create our own centralised exchange with bitbay as the base currency which will be like the most stable vs usd exchange out there.
All fee's after costing taken out for running it used to buy back bay from the market place and provide constant upwards pressure.

also whats up with tether today> seems to be 10% down?

Maybe Bitfinex needs more money to stay afloat?

Yeah i've never seen it drop more than a couple of % then always bounce quickly back... something has damaged it

Maybe the Bitfinex vs WellsFargo lawsuit?!

Seems bays peg is more needed than ever

Ahh!!! Didn't know about the Wells Fargo lawsuit!
Seems they withdrew, but I wonder what's really going on behind the curtain, for them to waste the time and energy to even file?

http://www.coindesk.com/bitcoin-exchange-bitfinex-withdraws-lawsuit-wells-fargo/

Either way... point being is that Tether's stability shouldn't teeter on a centralized entity's actions. The whole scenario very well could be the other way around where someone files a lawsuit against Ifinex on a whims notice and causing its demise.
Heck Wells Fargo could possibly have drawn out that case in court for years - hence the withdrawal.