Crypto Weekly # 118 – Cryptocurrency news of the week

News regarding Bitcoin and cryptocurrencies is in constant turmoil. It may happen that vital information gets lost in the daily news flow and you miss important points.

This format is there to remedy that. We return to the news of the past week in the Crypto Weekly to keep you informed on the current situation of cryptocurrencies

For the unmissable of this week we will look at an article by Ludovic , in which he returns to the history of Bitcoina, the sulphurous exchange platform that succeeded MtGox .

Its creator

Bitcoinica was created in September 2011 by Zhou Thong , whose real name was Ryan Tong Zhou, a 17-year-old Chinese boy who was studying in Singapore at the time.

He learned of the existence of Bitcoin at the end of 2010 and his first reaction was, like many others, skeptical. He only really took an interest in it when he heard about it again in the spring of 2011, when the speculative bubble was raging. He buys his first bitcoins at $ 8 a unit in August.

At this time, the exchange platforms multiply with the aim of copying the success of Mt. Gox: TradeHill is launched in June, BTC-e in July, Bitstamp in August. However, this range lacks a platform on which to carry out margin trading allowing leverage and especially short selling .

The start

Zhou Tong seizes this opportunity and starts working on a platform from September 3rd. Having knowledge of web development, he built the site in a few days. Bitcoinica was born on September 8, 2011 .

The launch is announced by Zhou Tong on Hacker News and on Bitcointalk. It presents Bitcoinica as an “ advanced bitcoin trading platform ”. On the website, he presents the platform as “ elegant, professional, revolutionary ”. He insists on the security of the platform, in particular by the fact that it “ does not manage a Bitcoin wallet ” and that “ the funds are kept on Mt. Gox and on [its] bank accounts ”. Finally, it emphasizes its accessibility by guaranteeing market liquidity and by not charging any exchange fees.

Deposits and withdrawals are made by exchangeable Mt. Gox codes , directly into bitcoins on Bitcoinica’s Mt. Gox account, or by international bank transfers .

Feel free to read the entire article to learn all about the rise and fall of Bitcoina: The Bitcoinica Affair: The Success and Fall of the Bitcoin Trading Platform.