Why Did Bittrex Delist BitShares?
There has been a lot of speculation over why Bittrex suddenly and without reason delisted Bitshares (BTS) on October 13. This announcement from Bata -also delisted- might help explain it.
October 15, 2017 | Bata Cryptocurrency (BTA) Bata has been traded on Bittrex since 11/20/2015.
October 3rd 2017 - a market deletion notice appeared on the Bittrex exchange for the Bata market.
**Bittrex asked Bata development to explain the shares concept ** - referring to a testing announcement Profit Shares. Explanation was provided directly to Bittrex contacts.
Bittrex asked why Profit Shares was not considered as a security. Then proceeded to ask for a lawyer's memo. Bittrex requested that a US Attorney was required to issue the Memorandum.
It was made clear to Bittrex that Profit Shares is an independent project from BATA. Profit Shares is not a token. It's a private crowd-funding platform. " (Bold added for emphasis)
https://bata.io/news Quote taken from PDF statement.
The reason may in fact be the idea -much discussed- that Bittrex is distancing itself from companies that might be considered a security. That argument could be furthered by the delisting of Darcus as well.
"Darcrus is an asset issued on the NXT blockchain that will allow its holders to receive rewards via disbursements that are assigned through a Proof of Holding reward system (which is similar to the master node payment system found in DASH). The reward system can be based on a buyback program on an exchange or disbursement via the NXT’s & Waves’ native systems. " (Bold highlighted added for emphasis)
http://cryptoscreener.com/coins/DAR/
Three of the coins delisted all shared a concept of "shares," in BitShares case this is really only in name as Bitshares has already passed the been put on the clean token list.
https://www.txsrb.org/single-post/2017/08/31/Current-Clean-Token-List-our-opinion
The Bittrex Bitshares market is now suspended, but there was a report of a positive meeting Friday with more talks among the parties this week so all hope may not be lost. Until an official announcement those rumors are simply speculation, and should be taken with a grain of salt to not add to the uncertainly around the issue.
Bitshares is not a security, passes the Howey test, has been vetted by TXSRB.org and ex-SEC lawyers. If this is the reason for delisting Bittrex should be sued for being idiots.
Well said. Very well said.
According to internet discussions, Bittrex did not seem to win any friends in how they went about the process. It was not very open, they did not discuss reasons or underlying issues and seemed to come about suddenly. One could argue they have already successfully proven themselves to be idiots.
Despite any official line the company may take, they obviously delisted bitshares because, if successful, conceptually BTS would not only disrupt Bittrex's profitability model but could easily put them out of business. Mount Gox is not going to be the only catastrophe in our cypto lifetime, there will be other storms and services like Bitshares (maybe an equiv will emerge thats better etc) will be the only truely safe place to trade. Liquidity is/will be an issue but I suspect something major will happen in the crypto space to propel BTS popularity and solve this issue.
I don't know if the return to bittrex is what we want right now. We need more people on the dex.
Moreover, I don't know how this return will affect us. Some will see it as strengh, we beat bittrex regulations, yay! Others might see it as lack of confidence in bts - like we barely manage to stay on the exchange.
I hear you. As a decentralized exchange, there is no telling what will happen. The platform does have a self-sustaining business model in a world where exchanges fail fairly rapidly. I think they need more coins trading there. BitShares as the little bother of Steemit, is well positioned in the world of crypto.Overall, if issues can be smoothed out being listed on more exchanges is helpful. That said, Bittrex has not even been clear what the issues are leading to a lot of guessing in the community. Given the multiple delistings, this announcement fit and needed to be brought to the communities attention.
As i have read many times on various forums, adding coins for trading on bitshares is the responsibility of the devs of said coins, not dex's. Noone controls the dex, so there is no one on our side to do that. And if the devs wanted to add their coin, it is pretty easy if i unerstand correctly.
That's the thing we need to spread the word about, so people that don't go to the dex because their shitcoin isn't traded there, will ask the devs to add it
They want to hold bitshares small.
The exchange bitshares is a really good exchange.
Its not centralized and it was never be hacked.
It has much lower fees and there is no man or company behind the exchange, that could work against the users.
Because of that they are afraid of bitshares, it have the potential to be the biggest exchange.
(Higher security, decentralized and lower fees
Killing off the competition ,-while it is small,- has been done successfully many times in the past. Strategically, that could make sense. Bitshares represents a very real threat to centralized exchanges which seem to have a very short life these days. I suppose if this was the true motivation, they would not be willing to share. To me this piece of evidence looks like Bittrex is trying to distance itself from anything that looks like shares.