Fears of Poloniex insolvency
Rumors around Poloniex insolvency are spreading on news sites and forums.
Today's rumors started due to reports from people unable to withdraw their funds from Poloniex, the #1 cryptocurrency exchange in terms of volumes. Multiple funds transfers were being stalled, with several users complaining it is taking more than 3 weeks now to get a hold of their withdrawals. In addition to this, it appears that various accounts are being frozen for undisclosed reasons.
Reports that Poloniex is not responding to the reported issues are fueling existing rumors and are causing alarm with already concerned investors.
Poloniex has been receiving largely negative publicity for a variety of reasons lately. In recent weeks it has temporarily disabled withdrawals and deposits from some of its listed cryptocurrencies (among which are Steem and Steem Dollars) upsetting affected traders and investors.
Then last week Poloniex announced that they would not support Bitcoin Cash, in the event of a fork, which further angered traders.
And yesterday Poloniex (and Bitfinex) made the headlines as they announced they would withdraw their operations in Washington after the SEC ruled that token exchanges should register as security exchanges.
However, none of the above has the potential to upset the market like current Poloniex insolvency rumors could, if proven to be true.
To put it all in perspective though, every few weeks there seem to be reports of investors having trouble with deposits, withdrawals or even assets stolen. However this is the first time Cointelegraph is reporting these rumors about Poloniex after it reported a similar issue for Bitfinex on April 18th 2017.
A common theme in throughout these rumors is the non-transparency and lack of communication. A similar effect could be seen last week when rumors started of a scam at Genesis Mining. They, too, experienced issues affecting payments to clients which they did not communicate in a timely or precise manner, resulting in wild speculation in the investor community. This particular example is further described in the article below.
https://steemit.com/genesis/@attalis/hack-resolved-genesis-mining-resumed-your-pay-outs
Taking into account the history of eventually resolved issues plus the fact that trading volumes on Poloniex seem to be unaffected, I don't really believe that Poloniex is insolvent.
Having said that, if you are not day-trading, funds should not be kept on Poloniex or any other exchange for that matter. Instead, long term investments should be in your (cold-storage) wallet. It is a trade-off between convenience and security, but the more you will have invested, the easier the decision becomes to move your funds of exchanges.
Be safe and stay tuned!
Good post!
thanks mate ;)