Two traders that are bitcoin protest signs right in front for the MtGox Tokyo head office on Tuesday (Image: AP)
Imagine waking up one and finding out that Wall Street had simply vanished into thin air morning. That’s somewhat akin to what happened in the world of Bitcoin early in the day this week, when Tokyo-based Bitcoin exchange MtGox seemingly disappeared on Tuesday after reports surfaced that the website had been suffering devastating losses behind the scenes.
Safety Problems, Exchange Problems Blamed
The last weeks that are few been particularly rough for MtGox. Just weeks hence, the exchange halted withdrawals into mainstream currencies after uncovering a security flaw in Bitcoin that could cause fraud. This Sunday that is past CEO Mark Karpeles resigned his place regarding the board associated with the Bitcoin Foundation.
Many other bitcoin that is major and exchanges were quick to aim to the collapse of MtGox being an isolated incident that was more about mismanagement than any specific problem using the digital currency itself.
‘As with any industry that is new there are particular bad actors that must be weeded down, and that is what we are seeing today,’ groups including Coinbase and BTC China said in a statement.
The latest issues started on night, when MtGox halted all Bitcoin trading without any warning to its users monday. Soon thereafter, the site went blank entirely, as though it had simply disappeared.
That had an immediate and predictable impact on the buying price of Bitcoin, because of the exchange rate at the very least on other exchanges that had been still exchanging dropping to around $400 per Bitcoin.
Earlier this week, documents that were supposedly leaked from MtGox claimed that 744,408 Bitcoins had been missing from MtGox, which would add up to hundreds of bucks equivalency within the digital currency. According towards the ‘Crisis Strategy Draft’ which was posted on the web log of Bitcoin enthusiast Ryan Selkis MtGox was considering dropping Karpeles as CEO, starting a ‘competent group’ to redesign the exchange, and ultimately rebranding the site to bring back consumer confidence.
Adding to the confusion is the undeniable fact that MtGox also deleted their Twitter feed on Sunday, removing another possible avenue for the site to disseminate information in the current situation.
Secrecy and Confusion
The result is the fact that few, if any, people outside of this insiders at MtGox it self know very well what is going on and whether the trade is solvent. After about 12 hours of silence, MtGox did return, though only with a short statement.
‘In light of present news reports and the repercussions that are potential MtGox’s operations and industry, a determination was taken up to close all transactions for now in purchase to protect the site and our users,’ a declaration through the MtGox group said. ‘We are going to be closely monitoring the situation and will react accordingly.’
On Wednesday, a second statement from Mark Karpeles also showed up.
‘I want to use this opportunity to reassure everyone that i will be still in Japan, and working very hard with the support of different parties to locate a solution to our issues that are recent’ Karpeles said. The statement also said that most staff at MtGox had been instructed to not answer questions concerning the situation.
To make matters worse for the company, MtGox has reportedly received a subpoena from federal prosecutors in nyc. Japanese authorities have also said that they are investigating the shutdown associated with the web site.
Prepaid Gambling Debit Cards Get Regulatory Thumbs Up in Nevada
Now approved by regulatory authorities, Nevada gamblers will quickly be able to use pre-paid debit cards on slot machines (Image: ThinkStock)
Nevada has joined Atlantic City in approving the introduction of prepaid debit cards to be used in its video gaming devices, a move that is being praised by promoters of responsible casino and gambling operators alike. The cards that are tied to a consumer’s benefits account can be used similar to a debit that is traditional, except that whenever the card balance hits zero the customer is forced to end gambling. In this sense they function just like cash.
Nevada Gaming Commission Provides Okay
Nevada bans the use of credit cards for gambling, and yet the gambling enterprises have always welcomed the idea of a cashless wagering system to reduce steadily the problems and expenses associated with handling and transporting large quantities of money.
Could Help Problem Gamblers Set Limits
Game On: Sands, MGM Vow to Spend Billions for Japanese Casinos
Like their prosperous Macau and Las Vegas properties, Las Vegas Sands and competitors MGM and Wynn aspire to crack the emerging land that is japanese market (Image: AP file picture)
It’s Sheldon Adelson’s favorite expression: the casino magnate has pledged that he will invest ‘whatever it will take’ to gain a foothold in Japan, should the nation legalize land-based casinos, as is expected to be authorized in time to have gambling enterprises set up for the 2020 Tokyo Summer Olympic Games. Coincidently, Adelson additionally recently declared, vehemently, that he would spend ‘whatever it will take’ to avoid online gambling from gaining a foothold into the U.S., although in case of Japan, the ‘whatever’ has a number, and that number is $10 billion.
Cash or Check?
It’s really a dramatic statement of intent from the CEO of the Las Vegas Sands Corporation, which already operates the Venetian in Macau and the Marina Bay Sands in Singapore, as the business licks its formidable chops at the proposed regulation of land gambling into the world’s third most prosperous economy. Adelson also told a press seminar in Tokyo that he would pay that amount in ‘cash’ if necessary. We suppose it helps being the person that is ninth-richest the entire world when you make statements that way.
It shall certainly make Japan’s lawmakers sit up and just take notice. The country’s ruling Liberal Democrat Party submitted a bill to parliament in early December that aims to open a gaming market up that could potentially be the second-largest into the world. It is estimated that Japan’s casino market could eventually generate $40 billion in revenue annually.
‘I think the bill will pass,’ definitely says Assistant Professor at Nihon University College of Economics Kazuaki Sasaki. ‘LDP is supporting the bill as well as for those ongoing parties which are against the bill, I don’t think they will put restrictions on each member’s vote.’
However, experts expect a really competitive bidding process after the bill passes, and say it could well be five years before the very first casino is ready to go. It’s no surprise, then, that the casino leaders are starting to flex their muscles, vying to get the hand that is upper. Las vegas Sands’ $10 billion spending declaration is twice that of what Macau’s Melco Crown has pledged to ante up. And with typical bravado, Adelson also informed assembled news that his business had already established offices in Japan, and is prepared to begin employees that are hiring.
Should Las Vegas Sands receive a coveted gaming license, it will only give consideration to building a casino in a large metropolis, such as Tokyo or Osaka, Adelson revealed. This, in accordance with gaming that is regional D.S. Kim, is very much commensurate with the company’s M.O. a choice for building large-scale casino resorts, complete with convention centers and shopping centers, in major tourist hubs with big, affluent populations and good transport infrastructures already in destination.
In other words: perhaps not Sochi.
Twenty-four hours after Adelson’s press conference, MGM Resorts shot back with their statement that is bold of, with CEO Jim Murren declaring a budget of $5 to $10 billion as well.
‘ We shall over-invest in the beginning to make sure, that we have properties that are built to last and that would stand additional competition,’ he promised as we have done everywhere else, so.
Wynn Resorts Ltd. President Matt Maddox’s reaction was more conservative, but perhaps contained a nod that is snarky his competitors’ machismo: ‘The opportunity is extremely good, but you’ve got to be careful in throwing down billions and vast amounts of dollars without really understanding what the objectives are of the town.’
Looks like these competitors are starting their own games as soon as possible.