The sad thing is, they could have made plenty of money through arbitrage, shared it fairly, and not needed to scam. They probably would have earned far more in the long run. And, if they had been running this honestly, they could withstand a run, as they claim our money was always there on exchanges. They would have had a smaller balance to work with. I think it is apparent the money is not there. Maybe they are paying us back as they earn it, maybe they are just stringing us along while bringing in new suckers. Only time will tell.

Meanwhile, I suspect we are talking 10s of thousands of dollars at a minimum are at stake. Anyone consider chipping in for some investigation and legal action? I'm pissed enough, I would much rather piss away the coin on lawyers and investigators than see them make a dime off of us.

Truncate (rather than round) after the thousandth's, i.e. a profit of .00198 = .001. That will give the correct answer, and I suspect is a large part of what makes the site profitable for them. For a 10K users on a good day, that's about 1 BTC.

Yes, the lack of contact is troubling. Fingers crossed, they are too busy focusing on the problem. Just because the worst case cannot be proven at this point, does not make it wrong. Rather than jumping to conclusions, the wisest course of action is to wait and see. If they come back, I personally plan to reward them with more capital. If not, I'm one of the lucky ones who retrieved my initial investment before it was too late. Investments such as this are certainly not without risk. Anyone who risks more on an investment of this than they can afford to graciously lose is a fool, as is anyone who assumes up front it is a scam. With the possibility of reward comes risk. If people can't accept that, they should keep all assets under a mattress in a fortified bunker.

My take is that there are an uncountable amount of potentially lucrative investments. Diversify among a large number of them that are unrelated, and barring an end to all social order, you will do okay. Get greedy, and put everything in the highest return investment you can find, and you run a good chance of losing everything. Like everything else in life, the key is moderation, and emotional equanimity. Investors in anything that panic at the first sign of reversal, or go all in when things look hot, Inevitably buy high, sell low, and lose their shirts sooner or later.

I've made investments where I have lost everything, investments where I've profited 10 fold, and investments that did nothing but languish. The only times I've lost in aggregate is when I've gotten too excited or too scared and over reacted. It's not easy to keep your head when others are panicking. It's not easy to resist going all in on something that looks like a no-brainer, but forcing ones self to do so almost always is the wise decision. I lost a good chunk of money in the 2008 crash, but not as much as some, because I avoided putting everything in stocks. When things crashed, I took the Warren Buffet advice, and bought with both hands to keep myself diversified in the same proportions as I was before the crash. I am far worse off than the minority that timed everything right, but far better off than the majority that panicked. I have a lot more now than I did before the crash.

It all comes down to whether you want a 1 in 10 chance of getting rich quickly vs getting poor quickly, or a 10 to one chance of merely doing very well, vs losing a minor portion of your wealth. I'm no super investor. I've given in to both greed and fear, and generally regretted it. The longer I've been doing it though, the more I've learned to fight those inclinations. In 20/20 hindsight, if I'd gone all in on some investments that paid out 10 fold, I'd be a rich man, but experience has proven to me that the only way to know which investments those are, is after it is too late.

If the site folds, anyone severely hurt should thank them for the lesson in moderation. If it doesn't then hopefully the scare will teach them the same thing. If the site comes back, and anyone becomes rich off from putting too many eggs in this one basket, then if they don't change, they will soon lose it all. Just my opinion.

IMO, Everyone should just dial back the the paranoia, hope things work out, and be prepared if they don't.By jumping the gun, they only make failure of the site more likely, and hurt themselves along with the whole community.

Yep, run on the bank is my biggest worry at this point. All the talk about scams could be a self-fulfilling prophesy. I still posit that no scam was intended, at least at this point. A scammer would not have had intermittent problems before going offline. They would have taken the money and abandoned the site.

If they were well run, they were making a ton of cash, and will have enough to cover. Unfortunately, we have no way of knowing if they were or not. The returns they were generating were quite possible via arbitrage between sites. All you have to do is chart out the prices on the three major exchanges for a day, and see they often differ by a percent or more. If you have both cash and money on all three, you wait for a one percent difference, and make a balanced trade. Then, move money and coin around to balance what is on each exchange, which takes a couple of hours, and do it again.

If you don't believe me, back test it over a couple of days. If they have a few hundred coin and a few tens of thousands of dollars, they are earning a bigger percent than they are are paying. Also, notice that when they figure the payouts, they are truncating, rather than rounding. That alone covers any transaction fees, and skimming 0.1 - 1 percent before posting the payouts they make easily makes a great profit for them, while still maintaining the payouts they offer members.

If they are scamming, they are extremely lazy and killing the goose that lay the golden egg. I have done the math. The payouts are not high if they have sufficient capital to work with. The only risk to their capital is theft, or a Mt Gox type situation. If I had the cash, I'd do it myself, rather than through them. I've thought of creating a similar service to raise the cash, but I would quickly lose patience with the doubters that would claim I was trying to scam people without knowing anything about me. That annoyance is just not worth the money.

Dishonest people are a small minority, but it doesn't take many to make raging paranoid lunatics out of otherwise reasonable people. As with any investment, don't put in more than you can comfortably afford to lose, diversify your holdings, and you will still do well despite the occasional scam.

Why do you assume that the web interface is on the same server as the arbitrage app? Or the database? or even the web app? I maintain deployment processes for the fortune 500 financial company I work for. Not saying we can't be hacked, but our security is among the best out there. Your diagnostics would show at least as many ports as you see here. However, if you broke in through them, you would get nothing of use. The public facing server is essentially a proxy. It filters and monitors requests, and asks other servers behind a firewall to deliver the content. No way you can tell that from the outside.

Beyond other firewalls, on other servers, are the logic, databases and applications. You are making assumptions that you have no way of proving, unless you have hacked through at least the world-facing layer. For all you can see from the outside, the public web address could contain essentially nothing.

Yes, I was mocking those saying the site was a scam. If it is a scam, why play the server up, server down game? A scammer would just shut it down without any games and take your money. T

The evidence posted on this thread shows nothing other than a dns problem followed by some server issues. It does not show a scam, or negligence, or incompetence. There is absolutely no way you can tell, unless you get on that server and poke around from the inside.

As for those worried about Maybe the alarmists are right, but they have yet to show any evidence of that on this thread.

Paranoia strikes deep
Into your life it will creep
It starts when you're always afraid
Step out line the man come, and take you away.

Think people.

If it has been on and off, that is pretty much a guarantee they are not absconding with your coin. If they were, why not just shut it down? Why down, then up, etc. I was bit suspicious of them myself, but took the risk with 0.05 coin. I have withdrawn 0.1 back, and have 0.1 invested, so I've become more trusting of them.

Perhaps the plan is to steal coin at some point, but it makes no sense that would have anything to do with the current issue.

great idea, but 5 day signup means it is gone before most people know about it. 6-months, or a year with distribution dribbled out a little each day, and only for those with wallets running would have been more fair, and would make sure that people kept online to keep a large network. The short distribution time, and barely any incentive to mine, I'm afraid will doom the coin.

Is there a way to point cpuminer at more than one url? I've looked around, but can't find where this question has been asked before. It would seem to me the ability to do this would allow mining more than one coin simultaneously.

PK8qw5PJo3WGfpbq6huN8uJGSneHDwQpzL

hope I am not too late to get the Doge 

From the little I've read about Velocity coin, it does appear to be yet another "me too" clone, but contrary to what a couple folks have said, that does not mean there is not still plenty of space for new altcoins,  IMO.

But, they must bring a new innovation to the table. Litecoin brought a mining system more resistant to monopolization by ASICS. Peercoin brought proof of stake as an alternate way to keep enough clients online to ensure the integrity of the system once it has been mined out.

As the most well known with the biggest network effect behind it, Bitcoin is likely to remain number one for the forseeable future (Again, IMO), but it is not a bad thing to see other coins being introduced.

Sure, some will be scams, some will be get rich quick schemes, some will be well intentioned bad ideas, and some will just be unnecessary clutter. At some point, however, one will offer enough compelling improvements to cause a groundswell of change. It is the nature of innovation.