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March 27, 2014

Havelock - The New GLBSE (or, The Rentalstarter Scam)

Filed under: Uncategorized — @ 12:00 a.m.
Havelock - The New GLBSE (or, The Rentalstarter Scam)

The Bitcoin Exchange Scam works a little bit like this:

  • open an "exchange" where people "list" "companies"
  • exercise some form of quality control at the beginning of the scam to give the whole operation a veneer of credibility
  • gradually relax whatever originally passed for "quality control", allowing basically anyone to "list" an "asset"
  • do everything in ones power to drive up the volume, as the exchange makes money on trades
  • allow anyone to list anything
  • do crazy things like suspend trading on an asset to sell a "tranche" at a higher price than the market could ever bear

Havelock has let at least one operation (VirtEx) straight up walk with suckers cash. VirtEx listed on Havelock to raise funds to build out their platform, promised dividends and failed to deliver them. Six or eight months later (the timeline is unclear, because scam operators have no incentive to provide records for future audits), the Havelock operators unceremoniously de-listed the VirtEx asset, and all owners of VirtEx shares were quite fucked.

This morning brings a new chapter to the current incarnation of the Scam Exchange:

<the20year3> HL will automatically suspend all buy orders under .0075, so all buys have to go in at .0075

Quite the twist! We're going to suspend trading so that we can sell a pile of paper at a grossly inflated valuation. The market is currently pricing H.RENT1 at 0.005250302. The plan is apparently to freeze trading on the existing asset and list a new asset - "IPO" style - that sells at a fixed price for a fixed duration. More likely than not by the time this second "round" completes, everyone involved will have forgotten the crimes committed and moved on to burning their BTC in some other chumpatronic fire.

Havelock. Considered harmful.

Footnotes:

1

A company that buys land cheaply in Ohio and then rents it out for an apparently fantastic return. HAVELOCK:RENT is a short on BTC with a crazy leg through the US property market in Ohio out to USD. Great play when BTC is slipping, as it has been lo these several months. We'll see how long this trend holds, as new players are showing up en masse on the daily in #bitcoin-assets again.

2
<benkay> !t h rent

<assbot> [HAVELOCK:RENT] 1D: 0.00525030 / 0.00536113 / 0.00562740 (907 shares, 4.86254898 BTC), 7D: 0.00520970 / 0.00540361 / 0.00563480 (3139 shares, 16.96192014 BTC), 30D: 0.00510111 / 0.00555895 / 0.00900001 (47528 shares,264.20559875 BTC)

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