As Bakkt volume gives the impression of growing, a crypto investor that goes by the name @ChicoCrypto on Twitter thinks that Bakkt is not even close to being good for bitcoin or cryptocurrencies but instead it is the devil, going as far as saying that Bakkt is the Wall Street attack on Bitcoin.
In a recent video, posted on Youtube on 13 November entitled “ Bakkt Is BAD for BITCOIN! Exposing the Wall St. Attack”, ChicoCrypto goes in detail revealing the attack on Bitcoin, highlighting the heavily promoted “physical Bitcoin settled futures” and the custody solution used by the trading platform.
After some research, Chico Crypto found that Bakkt did not publish anywhere the public address of their custody. Digging more he found that the custody company Digital Asset Custody Company (DACC) which was acquired by Bakkt earlier this year was created from Bakkt itself raising a question for Chico Crypto:
“Why create an independent warehouse which you own tied to delivery and not be like a normal futures product with physical delivery where a third party usually has the commodity like gold vaults.”
Making a long story short the Chico Crypto research ended up concluding that Bakkt has no public information about the process to withdraw bitcoin from their platform.
This raises red flags because any other regulated deliverable commodity contract in any trading platform makes available publicly the information about how a customer can get the physical delivery of the commodity.
At the end of the video the researcher questions if there is even a way for a trader to get their bitcoins out of Bakkt, suggesting that Bakkt works only in one way. You can deposit BTC but you can only withdraw USD from Bakkt.
When Bakkt was announced most of the crypto enthusiasts thought, finally a regulated product that will bring institutions into the bitcoin game with physical bitcoin, unlike the CMEs paper bitcoin.
But with all the red flags that are exposed in the video, the only thing that completes the puzzle will be to hear the “Tump admin” (maybe sometime later) claiming that they created Bakkt (like CME but as a wolf in sheep’s clothing) to bring down bitcoin.
Another coincidence spotted by @Super_Crypto on Twitter is that Bakkt volume surged on 8 November and 22 November and these were the days when bitcoin dumped heavly.
You bought BAKKT dream for 2 years. Time for REALITY Check
TWO record volume days at BAKKT…both days blood on the streets
BAKKT = WALL St.
You want to believe in “Physical” bitcoin with Wall St? Good luck with that!! Rehypo is coming!!
Here is for your record pic.twitter.com/FpUi8JRVqT
— Bitcoin, Gold, Silver & Geopolitics (@Super_Crypto) November 23, 2019
Update: December 4, 2019
Seems that Bakkt futures are not backed by bitcoin at all, it is not even backed by dollars at 100% as Economist and trader, Alex Kruger points out.
Myth: Bakkt futures fully backed by bitcoin.
Reality: Bakkt futures 37% backed by dollars or treasuries. pic.twitter.com/m9Gww7SP8v
— Alex Krüger (@krugermacro) December 2, 2019