Cryptsy currently holds about 12.5% of all Reddcoin supply in the listed sell orders. This represents the majority of all Reddcoin available for sale on market. Rumors based on the coinfire article claim that Cryptsy is under federal investigation. While Cryptsy denied these accusations they have also since implemented additional identity verification requirements as well as withdrawal limits.
Without affirming the coinfire accusations, we should consider how the implications. could affect our community.
Assuming a worst-case scenario for Cryptsy in which they ordered to stop doing business and/or in which all assets are seized or frozen:
- What would be the effect on Reddcoin and Reddcoin Price?
- What can the community do now to protect itself from these possible scenarios?
Assuming a best-case scenario for Cryptsy:
Is it in the best interest of any coin for a private exchange to be in possession of 13% of all issued coins?
What is a safe amount of the market cap for one exchange to posses?