Vlog #74: Why Poloniex keeps stopping STEEM withdrawals and deposits (theory) + Trying out D-tube for the first time.
Watch Vlog #74: Why Poloniex keeps stopping withdrawals and deposits (theory) + Trying out D-tube for the first time. video on DTube
I'm typing this directly into the D-tube Editor. Not sure yet what will happen.
Why Poloniex keeps stopping withdrawals and deposits (theory)
This theory is from user @crypto-investor and was brought to my attention by a user called @orionschariot in one of his replies to my posts. I rewrote it to make it even simpler.
When you send Bitcoin to Poloniex it will generate a separate deposit Bitcoin address for you linked to your Poloniex account. Sending your BTC to that address identifies the BTC as yours. If you make a mistake in the deposit address the Bitcoin is lost. Simple.
With STEEM its different. Poloniex can't generate a specific STEEM address for you. You have to send your STEEM to the Poloniex STEEM account and add a memo description to identify the STEEM as yours. Now when users make a mistake in the memo field Poloniex will still receive the STEEM in their wallet. (unlike Bitcoin) but they don't know who it belongs to.
Figuring this out is not impossible but takes time. We have a lot of crypto beginners on Steemit so I can imagine this happens often.
It explains why they would just shut down STEEM deposits and withdrawals for a while to sort it.
I talk about it more in my blog (starts @1:55)
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Hey brother! Awesome video as always. First of all, let me say it was our pleasure having you stay with us down in London. You're such a fantastic guy and helped create some beautiful memories for us to look back on. Gotta book the next trip in soon to add some more good times into the mix! :)
And yes, Dtube is phenomenal. A great app that is just what our incredible platform needs. A very impressive start which should only keep on getting better and better as time goes on.
All the best, my brother! Look forward to more from you very soon. :)
Thank you so much, man! The feeling is mutual and now that I know where you live I can hop over anytime. It's only a hour flight :)
D-Tube worked great! Loaded fast and with no lagging whatsoever. I really liked how the default video size was larger than youtube and the picture was crystal clear.
I really hope the explanation from @crypto-investor sheds some light on this problem with Steem and the exchanges. I thought his explanation was perfectly logical and made a lot of sense. Just last week Steem was disabled at least of awhile on Polo, Bittrex, Changelly and Shapeshift, so this leads me to believe it's definitely an issue on the Steem Inc side of things pertaining to the memos.
This quote here sums it up perfectly:
"With BTC, an exchange generates each user unique addresses, with Steem that don't work, they're only permitted to have one or a few accounts, but not a unique blockchain address for each individual user's deposits. This means, they have to sort out the transactions using the memo field. What if they get a bunch of deposits without memos?"
I'm still relatively new to crypto and didn't even know what a memo was until I sold some SBDs for Steem Power through block trades and watched a video showing me how to properly put in the memo field. All of my original transactions up to that point I simply left the memo field blank when dealing with Polo and Bittrex. 1 time on Polo I had to wait 3 days before my transaction completed. Needless to say I was a little worried, but I realize now I simply didn't know what I was doing. So you mentioning the overall inexperience of Steemit users pertaining to the in and outs of crypto is I believe a very valid reason. For most users Steemit will be their introduction to crypto since there's no barrier of entry. They can simply sign up for a free account and start earning Steem. The learning curve is quite steep with Steemit and crypto in general and it would be a great idea for Steemit to invest in maybe a video series outlining the ins and outs to get started. The welcome page is great, but it's all text, and we know most people would rather learn from watching than reading.
Great post as always brother and maybe with you addressing this subject in your blog it will bring more attention to this issue so it can get resolved and we see the Steem price rise to where it should be.
Again thank you for bringing it to my attention!
I'm glad to see that you had such a great time in London and all thanks to the great @rea and @ezzy! :)
Steem has reached pretty low which is a good time to invest in it but it is still relatively expensive for me to convert my fiat to it and I hope the rubber band effect from the bitcoin rise will carry steem with it sooner or later.
It makes sense why Poloniex and Bittrex would freeze their wallets to resolve some problems with the wrong memo as there are so many people where steem is their first crypto so problems are definitely going to rise.
DTube is absolutely amazing. Great to see that there is another platform where people can grow and share their content. Especially after ad revenue going down on youtube as well as their terrible policies.
However, I have had a few problems with its video player. It seems like there is no way to manually change the quality of the video so if a video is uploaded in maybe 1920 x 1080 or 4K then my internet just struggles to load it with constant pauses. If you are able to could you put your vlogs also on youtube since I'm already subscribed to the channel.
We need legitimate youtube alternatives or we will always be subject to the whims of Google. Google does not care about the content curators. Their actions this year make that painfully obvious, despite the fact that without content creators youtube is nothing. People need an alternative and DTube may be it.
Well I hope you have a great week @exyle! :)
I have uploaded the video to youtube as well. Thanks for pointing that out!
Interesting idea, but I don't think that's the problem. If somebody sent steem to the 'poloniex' account where the memo field didn't match one in their database, they could easily return it to the Steem address from which it came, minus a handling fee if necessary (which could be explained in the memo field of the return transaction).
I think it's more likely that due to the resources and skills required to run a Steem RPC node, they have some difficulty doing so, or integrating it with their systems. Maybe since Bittrex and Blocktrades are more integral to the Steem ecosystem, they have more expertise in running the necessary servers.
This theory could also be wrong though.
Could be, man. Thanks for that input!
It scares me using Poloniex these days. Keeping clear personally
The results from the D-tube editor seem to be quite good. Thanks so much for the explanation about why Poloniex keeps stopping withdrawals and deposits. I think that issue might complicate withdrawals and deposits. However, it shouldn't lead them to completely suspending the process.
Dtube is directing you to another window.
Will try to use it soon.
poloniex got issues.
Hope they get it resolved soon !!
I would say get on Bittrex but they've also been bad with stopping STEEM withdrawals/deposits lately
DTube looks awesome, Thanks @exyle for sharing interesting insights in poloniex and Steem issues...I hope and wish to get this sorted out quickly as it is negatively affecting the Steem price.
This is interesting @exyle but I think as you said could be a problem for newbies who dont understand how all this works potentially ended up frustrated or feeling robbed, I see bittrex is also acting a little weird with steem, Also thanks for this as it gives me an idea on how Dtube actually works.