Poloniex Issues Caused Significant Panic and Losses For Cryptocurrency Traders

[mike91]

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Plenty of cryptocurrency traders are not too amused with Poloniex right now. The popular altcoin exchange suffered from several brief outages yesterday. During the panic, the Ripple price crashed hard and Ethereum lost US$1bn in market cap. It is unclear what occurred exactly, but we do know traders lost a lot of money in the process. It is unclear what will happen to the people who lost money, though.

 

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One thing is certain: a lot of people have lost faith in Poloniex for the time being.

http://www.newsbtc.com/2017/04/03/poloniex-issues-caused-significant-panic-losses-cryptocurrency-traders/

Thx to Borry in the chatbox for posting the link

[Greeny]

While I understand this happened, the value of XRP still is 8 time higher than where it sat for about 2 years.  Yes it was 14 times higher for a few hours.  If it is meant to be, it will come back up soon.  The sudden interest in XRP caused many sites, including this one to lose functions due to massive demand on the servers.  Even Coinmarketcap was lagging for a while.  Hopefully a lesson learned for POLO, they will increase their server capability and fix it for future trading and move on.

[RafOlP]

RCL can help preventing this kind of issues. It is 100% available and issuers can be accounted if they freeze assets arbitrarily. Evil intentions are easily spotted.

I am not saying Polo had evil intentions but the problem is: who can tell for sure?

[Guest]

strong incentive for other exchanges and gateways to attract disgruntled polo (ex)customers

[Guest]

"server problems" at moments of high trading volume provides an incredible window of opportunity for centralized exchange operators to insert their own orders, rearrange orders, or completely abort unfavorable orders. Even if this is not something that is done by Poloniex management, it can be done by the Poloniex admins. It's just too easy, and the rewards are gigantic.

I don't understand why people don't have any problem with that, and are OK with the excuse "Oh but they won't do this because if it comes out it will affect their reputation". How would that ever come out, since we don't have access to the internal logs of the exchange? Poloniex is a black box. Seems to me that the benefits greatly outweigh the risk of getting caught.

The solution is decentralized exchange with tamper-proof order books on the Ripple Consensus Ledger. Complete transparency, 1000 tx/sec and beyond scalability, fee escalation kicking in at ultra high volume, trading right from your wallet, minimal counterparty risk, cross exchange trading. All problems solved.

[Guest]

but lucky how can you be so suspicious of a bitcoin exchange, when they have such clean records these past few years...

[Vertigo]

3 minutes ago, lucky said:

"server problems" at moments of high trading volume provides an incredible window of opportunity for centralized exchange operators to insert their own orders, rearrange orders, or completely abort unfavorable orders. Even if this is not something that is done by Poloniex management, it can be done by the Poloniex admins. It's just too easy, and the rewards are gigantic.

I don't understand why people don't have any problem with that, and are OK with the excuse "Oh but they won't do this because if it comes out it will affect their reputation". How would that ever come out, since we don't have access to the internal logs of the exchange? Poloniex is a black box. Seems to me that the benefits greatly outweigh the risk of getting caught.

The solution is decentralized exchange with tamper-proof order books on the Ripple Consensus Ledger. Complete transparency, 1000 tx/sec and beyond scalability, fee escalation kicking in at ultra high volume, trading right from your wallet, minimal counterparty risk, cross exchange trading. All problems solved.

or atleast XRP listing on some big ass forex exchange