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68% of total Ethereum transaction value controlled by one system

blog.cyber.fund

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Re: 68% of total Ethereum transaction value controlled by one system

#51
post #50
post #49

Earlier quoted context omitted.

At first, I thought you might be hyperbolic or had fallen for some sort of propaganda (for lack of a better term). I don't know much about ICOs and I know/knew less about Paragon. I figured I'd check and just let you be, figuring I'd not get involved. So, I went to Google and entered, "Paragon ICO complaints Reddit." In two minutes, probably less, I'd confirmed that they were as bad as you claim. I spent about a half…

Haha, I appreciate the response, I'm glad that upon doing your own investigation you found that my wording was reasonable. As far as legality goes, it's difficulty to say. I think that a project like this is likely paying lawyers good money to make sure they stay 'in the green', but lawyers can only do so much to protect you when you do the things that they're doing. We all know that projects like Paragon and many ot…

The only thing you might be guilty of is minimizing it.

I figured if I was doubtful, other people might be doubtful. Rather than have you be dismissed, it seemed to me that confirming your post was the prudent thing to do.

I was pretty shocked. That's fodder for a whole HN link and thread. I really figured you were blowing it out of proportion. Nope... Hell, the list of complaints goes on and on.

I'm reminded of when drones were gaining in popularity and people, notably on Slashdot, were saying all the things they were doing and how nobody could stop them. I told them that is how you end up with draconian regulations. I was moderated quite heavily in the downward direction. Fast forward a few years and they are complaining about draconian regulations.

Which is to say you're right. They are going to end up coming down on this, and coming down on this hard. I'm sure some rebels will say it can't be prevented, but laws don't work like that. They don't prevent anything. They'll just make cryptocurrency illegal, use and possession, and selectively prosecute the offenders.

That's worst case scenario, I guess. They may just regulate ICOs heavily and stop the regular person from investing. I doubt that will bother the wealthy and established players much. Even better, they'll be doing it 'for your own protection.' Those sound bites will appeal to the masses.

By the way, this is one of those times I wish an HN poster had been wrong.

Re: 68% of total Ethereum transaction value controlled by one system

#52
post #47

Earlier quoted context omitted.

yes - but isn't that what's essentially happening here when you run your coin thru a mixer and mix it with other coin (which must have the same value) - you sell your coin and get back a new one with today's value - voila a taxable event ....

I would assume you would argue that you merely moved money (or assets) around, just like you would wire money from A to B. Moving stocks with unrealised gains from broker A to B is also not taxable. The only person you would ever have that conversation with would be the IRS (or your local tax authority outside of the US), and they are bound by confidentially.

yes but that act of mixing your coin with others effectively gives you back mostly other people's coins .... what's their value if not today's value?

Re: 68% of total Ethereum transaction value controlled by one system

#53
post #30

Why is the link at the top of this article ('cyber•Fund') to https://cyber.fund/system/Paragon , a page for 'Paragon', a very shifty high-budget ICO? Given the other things Paragon has paid big bucks for (anything you can imagine, from paying Youtubers 5 figures per video to get their subscribers to 'invest' in them to paying for mass reddit vote manipulation to buying very expensive ads and sponsorship programs to l…

ICOs are the new nigerian banks

can you clarify your comment?

Re: 68% of total Ethereum transaction value controlled by one system

#54
post #27
post #9

Earlier quoted context omitted.

But since its still on a permanent immutable blockchain, couldn't someone still trace Bitcoin/Eth transactions with perfect accuracy?

Let's say you hand me a $100 bill, and that you have marked that bill. I then take that bill to a bank and ask for 3 $20 bills and 4 $10 bills. The bank takes that $100 and puts into the vault, and takes out the bills I asked for out of the vault. Later, someone comes in with $100 worth of bills, and asks for a $100 bill. The bank goes to the vault and gets the marked $100 and gives it to that customer. Tracking the…

I'm sure Coinbase keeps a record. It's only a matter of time before the government gets ahold of their records.

Re: 68% of total Ethereum transaction value controlled by one system

#55
This is obvious if you've ever poked through a few random transactions on etherscan. The big exchanges use temporary accounts to move funds to users. It makes sense that would make up a majority of eth transactions because fiat is the only way to purchase ether.

Re: 68% of total Ethereum transaction value controlled by one system

#56
post #30

Why is the link at the top of this article ('cyber•Fund') to https://cyber.fund/system/Paragon , a page for 'Paragon', a very shifty high-budget ICO? Given the other things Paragon has paid big bucks for (anything you can imagine, from paying Youtubers 5 figures per video to get their subscribers to 'invest' in them to paying for mass reddit vote manipulation to buying very expensive ads and sponsorship programs to l…

ICOs are the new nigerian banks

Nigerian princes

Re: 68% of total Ethereum transaction value controlled by one system

#58
post #15

Aren't these the temporary deposit addresses that exchanges give out? You deposit and then they sweep the balance to their hot/cold wallets as necessary? Also the ReplaySafeSplit and related contracts were due to the ETH/ETC split, you had to move your coins to be safe. I see no evidence of a "mixer" being the cause.

Such a waste of tx!

Ethereum should allow sending directly to 0xAddr#input where input could be kind of tag that is used to identify you.

Re: 68% of total Ethereum transaction value controlled by one system

#59

Is the story that 68% of the traffic is naked laundering or that 68% of the traffic is people buying into ICO that are not already enfranchised in ethereum?

It's not laundering, it's spoofing by some of the earliest Ethereum holders who are trading with themselves on the exchanges to create the appearance of volume and liquidity to drive up the value of their coins.

Genuine (but possibly stupid) question: How do I tell the difference between that and the 'exchange temp accounts' theory promulgated upthread?

Re: 68% of total Ethereum transaction value controlled by one system

#60
post #52

Earlier quoted context omitted.

I would assume you would argue that you merely moved money (or assets) around, just like you would wire money from A to B. Moving stocks with unrealised gains from broker A to B is also not taxable. The only person you would ever have that conversation with would be the IRS (or your local tax authority outside of the US), and they are bound by confidentially.

yes but that act of mixing your coin with others effectively gives you back mostly other people's coins .... what's their value if not today's value?

If I go get change for $10,000 in $100 bills and ask for all $1's do I realize 10,000 dollars in capital gains because those are "other people's dollars"
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