Why Does Huobi suddenly have more volume than BTCChina & OKcoin?!???

[presence]

Why Huobi has higher volume than BTCChina and OKcoin (self.Bitcoin)
submitted 3 days ago by Tejano
For those unfamiliar with Huobi, it is now the largest BTC exchange in China doing roughly 70,000-80,000 in volume a day (versus 4,000 at OKcoin). Earlier today I spoke with my friend who is building an exchange in Shanghai who explained the volume discrepancy.
The way the current exchanges in China are nearly all set up is that all of the trading is actually conducted


using the CEO's personal bank account.


Seriously.


That is to say, none of the exchanges (at first) utilized a corporate account. At some point this past year the big exchanges managed to switch to corporate accounts in some form or fashion. So on top of the 3rd party payment provider issues last week, the CEOs at the big exchanges (probably) expect some kind of crackdeown on personal accounts so they are trying to go completely legitimate and avoid that risk.
Thus Li Lin (CEO of Huobi) is shouldering a great deal of risk that neither Bobby Lee nor Xu Mingxing no longer are willing to do any longer (perhaps for good reasons).
The other reason for Lin's success is that he has an individual account with each bank (ICBC, BoC, ABC, CCB, SPD, etc.) so his system does not utilize an interbank transfer (other exchanges may have used that same method as well, I do not know). Again this is largely due to the current legal policy (which has existed for as long as I lived there) in which you cannot just move money from a corporate account to a personal account without a fapiao.
Note: if you are a big trader, right now you would want to use Huobi to buy BTC (as it is the easiest/fastest way to do so) but use BTCChina for actual trading (due to its features).
If you have any questions, I can relay them to my friend.
[Sidenote: here is my response to Charles Stross' FUD last week: http://www.ofnumbers.com/2013/12/18/charles-stross-takes-on-the-bitcoin-community/]

http://www.reddit.com/r/Bitcoin/comments/1tinga/why_huobi_has_higher_volume_than_btcchina_and/






notes:
Understanding China's 'Fapiao' Invoice System

 

[dannno]

Mind. Blown.

Do you still see BTC going down to 500-650 range in the near term?

 

[presence]

Mind. Blown.

Do you still see BTC going down to 500-650 range in the near term?

No kidding, talk about giving China the middle finger.


Here are my latest charts, be sure to open them in new window as they may go off edge of screen:

Where I say "exit long" that is... hold fiat for +/- 10 days (long time in crypto day trader time)

click here for what happens "after April 13th"

http://bitcoincharts.com/charts/mtgoxUSD#rg60zig12-hourzczsg2013-04-12zeg2013-04-30ztgSzm1g10zm2g25


4/13 - 4/17 event will play out over 10 days or more (40 days?) as this crash is progressing much more slowly. Time scale relates to hype however... Just keep price targets in mind and watch velocity.

 

[Dianne]

Instead of throwing up a bunch of charts... can some of you explain what they mean. BTC going up, or BTC going down ... just simple theory.

 

[presence]

Instead of throwing up a bunch of charts... can some of you explain what they mean. BTC going up, or BTC going down ... just simple theory.

I got bad vibes tonight.


Loss of momentum in LTC and Huobi... been watching the charts all day holding $22.15/ltc. Over it.




Dumped holdings at $22/ltc.



Sleeping in $7 buy order.



Best of luck. Highly speculative at this price level. I can't sleep in it.


I'll report back in the morning.

 

[dannno]

Sleeping in $7 buy order.

Do you mean $700 (/btc)?

 

[Fermli]

Do you mean $700 (/btc)?

I think he means $7 per litecoin.