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Is Anyone Else Concerned About Poloniex?


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@Mercury  It made me seriously frustrated to watch that happen not just once, but three times. I can't wait for this market to grow, so it can't be manipulated as easily.  Ripple has already made great strides getting the majority of trading away from Poloniex and Bitcoin, and I believe it will only increase and accelerate from here.

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Just now, SimpleLife said:

@Mercury  It made me seriously frustrated to watch that happen not just once, but three times. I can't wait for this market to grow, so it can't be manipulated as easily.  Ripple has already made great strides getting the majority of trading away from Poloniex and Bitcoin, and I believe it will only increase and accelerate from here.

Agreed. **** happens, so once OK. Two times, annoying. But three times? Only when a certain asset is primarily affected? That smells a little off.

 

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In my earlier post -- I was simply speaking to the question of Poloniex being incorporated in the state of Delaware. As far as Poloniex and how they operate -- In my opinion -- they are definitely the least trustworthy, most dodgy exchange out there. I trust them about as far as I can drop kick an adult elephant. In fact -- the thing that really scares me is amount of volume that still goes through that exchange. I have felt that they're a "hacking" story in the making. 

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A snippet below from the original post of bitcointalk when Poloniex was hacked in 2014:

I take full responsibility for this and am committed to repaying the debt of BTC. The exchange funds are 12.3% short. Because there is not enough BTC to cover everyone's balances, all balances will temporarily be deducted by 12.3%. Please understand that this is an absolute necessity--if I did not make this adjustment, people would most likely withdraw all their BTC as soon as possible in order to make sure they weren't left in that remaining 12.3%. Aside from the obvious drawback of most of the BTC being taken out of the exchange, this would not be fair--some people would get all of their money right away, and a few would get none right away.

The amount deducted from everyone's balances will be recorded, and funds raised from exchange fees, as well as donations from my own pocket (which is not very deep, I'm afraid), will be distributed regularly to all users who have had BTC deducted. Exchange fees will be raised to expedite the recovery of the debt. 1.5% has been suggested by many people, but I will take input on this. Exchange fees will not be raised.

If I had the money to cover the entire debt right now, I would cover it in a heartbeat. I simply don't, and I can't just pull it out of thin air.

Hopefully, lessons have been learnt.

https://bitcointalk.org/index.php?topic=499580

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12 hours ago, Pointbreak said:

A snippet below from the original post of bitcointalk when Poloniex was hacked in 2014:

I take full responsibility for this and am committed to repaying the debt of BTC. The exchange funds are 12.3% short. Because there is not enough BTC to cover everyone's balances, all balances will temporarily be deducted by 12.3%. Please understand that this is an absolute necessity--if I did not make this adjustment, people would most likely withdraw all their BTC as soon as possible in order to make sure they weren't left in that remaining 12.3%. Aside from the obvious drawback of most of the BTC being taken out of the exchange, this would not be fair--some people would get all of their money right away, and a few would get none right away.

The amount deducted from everyone's balances will be recorded, and funds raised from exchange fees, as well as donations from my own pocket (which is not very deep, I'm afraid), will be distributed regularly to all users who have had BTC deducted. Exchange fees will be raised to expedite the recovery of the debt. 1.5% has been suggested by many people, but I will take input on this. Exchange fees will not be raised.

If I had the money to cover the entire debt right now, I would cover it in a heartbeat. I simply don't, and I can't just pull it out of thin air.

Hopefully, lessons have been learnt.

https://bitcointalk.org/index.php?topic=499580

Umm no. What you have here is a "Company" if they are even registered as one, which has failed to purchase and maintain proper business insurance. That is poor planning when it comes to your money and their respect for you. There is plenty of corporate mitigation that they can do to offset massive loss. When incorporated, they remove the loss from themselves personally, yet they have not bothered to do that either? Again it is respect and responsibility for your money which is not considered. So far there is not one good thing about the Polo model except a fancy looking website.

The lesson overall is, do not keep any balance in any exchange. Your money is not and never will be safe.

Edited by Xilobyte
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12 hours ago, xrpaware said:

In my earlier post -- I was simply speaking to the question of Poloniex being incorporated in the state of Delaware. As far as Poloniex and how they operate -- In my opinion -- they are definitely the least trustworthy, most dodgy exchange out there. I trust them about as far as I can drop kick an adult elephant. In fact -- the thing that really scares me is amount of volume that still goes through that exchange. I have felt that they're a "hacking" story in the making. 

Think of it differently, what if "Hacking" is the cover story. There are many exchanges that have simply packed up and disappeared. What if now they have the corporate insurance and bla bla bla in place to cover the losses and then "get hacked" iot take the money. Hard to say. The other question needs to be, if they do get hacked, is it even considered real money enough to do an investigation. If you look into the Delaware laws and find that crypto is not real money but a product, or maybe not even that, now would there be a FBI investigation even.  Just things to consider, is all. 

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15 hours ago, Pointbreak said:

... Mike stated the company has about 50 employees in addition to a 10 person legal team.....

Gotta wonder why they feel that they need 10 legal bodies. That is 20% of their workforce. Seems odd if at least untrue. What can be is to look into the DE business records, BBB and the registration info. Get a solid address for the companies operations and check the HQ out. That should be public data. Then use that to DOX as many as possible.

Edited by Xilobyte
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On 2017-6-28 at 5:31 AM, natethesnake said:

I can't speak for everyone else, but I certainly grew tired of Polo's trollbox and frequent network failures. 

Actually this can also be an indicator of company size and operations. It indicates that they have not properly invested in firewall hardware, load balancers and multiple T3 inputs at the minimum to handle the traffic. This is either an indicator of competence or funds. 50 plus employees at welfare pay levels are still a million a month in paychecks. Then his 10 man legal team at $150/hour for who knows how much. He would also need a 10 man IT team to support the equipment that he should have. Then a help line team, finance team and maybe a business development team. My guess from this little bit of info is that something sneaky is going on. If they have these massive funds from the exchange, then they do not seem to be investing them into the IT operations of the company. 

A Goole image of their whois address shows some sort of office complex. It can support the entire operation I suppose, but does not mean that the IT operates out of this building. It could just be the lowly web developer address.

Screen Shot 2017-06-29 at 06.31.00.png

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ICANN Data:

 

Registry Registrant ID: Not Available From Registry

Registrant Name: Tristan D'Agosta

Registrant Organization: Poloniex, Inc.

Registrant Street: 5 Middlesex Ave, 4th Floor, Suite 400

Registrant City: Somerville

Registrant State/Province: Massachusetts

Registrant Postal Code: 02145

Registrant Country: US

Registrant Phone: +1.3025186536

Registrant Phone Ext:

Registrant Fax:

Registrant Fax Ext:

Registrant Email: tristan@poloniex.com

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