Possible Insider Trading at Poloniex?
Last week both Poloniex and Kraken cryptocurrency exchanges were effected with DDOS attacks which not only caused major lag as well as keeping some users from even being able to log in. I was on Poloniex during these attacks and each time I was able to get logged in again, the pretty much every alt coin had dropped (10% or more.)
Now while I'm a small player and don't have a ton of money over there, it did cause others to lose a TON of money, especially those with margin orders. Essentially, buying on margin is when you are borrowing money to make transactions and when they are closed (or ended) you have to either cash out profits made or pay for losses. It's one of those nice times to be a trading newbie, since I didn't have anything on margin myself.
While this was going on, there were a lot of users in the trollbox (i.e. chatbox) claiming that these attacks were coordinated by one or more huge users so they could manipulate it for their own gains, like making huge sell orders right before the DDOS attack. While users were having issues with the site, the trading itself was not stopped, meaning people couldn't change their orders while it was going on.
It's not known if there was actually insider trading occurring but the law firm Berns Weiss LLP is looking into the incidents. They are currently asking Kraken and Poloniex users who were effected or have information regarding their case to contact them at [email protected]
While I don't claim if there was wrong doing or not, I have been looking at other exchanges like @tradeqwik and @bittrex.
Press Release from Berns Weiss LLP
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Thank for sharing! I am interested to find out your thoughts on whether we are in a cryptocurrencies bubble now? Here is the DATA which support this my assumption: it looks that we are entering bubble territory for a vast majority of alt coins (except Bitcoin probably). Just think about and analyze the following facts:
At least several dozens alt coins market caps skyrocketed 300%-4000%(yes, four thousand!) recently just over last 2 months!
The beginning of sharp increase happened around middle of March of 2017 for ALL alt coins!
Yes, some alt coins sharp increase is logically justifiable. For example, Ripple XRP: http://www.cnbc.com/2017/03/01/japanese-banks-plan-to-adopt-blockchain-for-payments.html . Maybe there are couple other alt coins where this huge growth is also justifiable.
But for vast majority of other alt coins nothing has changed drastically during the last 2 months! At all! Neither in their technologies development, nor in their business development! But nevertheless, their market cap skyrocketed 300%-4000% in just 2 months!
The only explanation which comes to mind is that huge amount of new capital is coming to cryptocurrencies market. Probably these are the people/investors who have heard about the first wave of Bitcoin and Ethereum successes, and they have a FOMO (fear of missing out) now. They don't have deep understanding of cryptocurrencies space and their differences, but because of FOMO they still invest in all other alt coins hoping to hit jackpot!
Does it remind you anything? Yes, exactly, dot com bubble of 2000 looks very similar!
Therefore, I would expect some kind of significant downside price correction within next several months for the majority of alt coins. Would you agree?
Been using bittrex since day 1. Their interface isn't as nice, but I have also had no issues with them ever.
The interface was part of what had put me off from there, but I can say my priorities have been changing. Lol
Bittrex definitely! I haven't encountered any problem with them so far. Insider trading is unavoidable since every system is fallible. The best we could do is to place insurance for ourselves so we don't lose out.
I plan to check them out again, if nothing else just to split the exchanges I've got money on. But you are right, there's no was to completely ensure against insider trading. I would think though that having the ability to take a whole exchange site down (just the front end so the trading doesn't stop) is something that could be shored up over time.)
Aaaannnddd I just read news that they're jacking up the price of BTC withdrawal >.< Good job, Bittrex. Just when I'm selling you, you guys decide to do this haha
Lol. That's why I'm excited to see @tradeqwik scale up :D
Hey Bro,
Good Stuff!
Follow me? https://steemit.com/@dnonomos
Just another BitCoin Collector.
Cheers! Upvoted your articles!
Thank you!
I'll def take a look :)
thanks pal.
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