Why Has Poloniex disabled STEEM Withdraw and Deposit Option
So much buzz in community as it is almost a week since Poloniex has disabled STEEM and SBD withdraw and deposit option.
There are even many negative remarks with some individuals saying Poloneix is planning to delist STEEM.
Lol man, be easy, Poloneix will not de-list STEEM or SBD, as it is earning thousands of dollars daily from STEEM community in terms of fees.
Well, then why?
The main reason it is disabled is to prevent ARBITRAGE from Bittrex.
YUP!
The STEEM and particularly SBD price is very low on Bittrex as compared to Poloneix.
Anyone can easily make hundred of profits doing Arbitrage from Bittrex to Poloneix.
Are you sure?
Yes, It is known practice of Poloneix to disable wallets to prevent arbitrage on exchange, in the past Poloneix even banned SC and BCN wallets as users try to make Arbitrage from Bittrex and Cryptopia.
Thus, we need to wait for prices to get even on both exchange and no one knows how long it will take.
Prices of STEEM and SBD on both exchanges. It can be clearly seen how one can make profits from SBD which stand as the main problem.
Poloneix prices
Bittrex Prices
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"It is known practice of Poloneix to disable wallets to prevent arbitrage"
How do you know this?
Anyway, arbitrage levels the markets, so disabling Steem on Poloniex might only make matters worse.
My view was that Poloniex disabled Steem because of the hardfork. This is common practice.
They actually lost one of my Steem deposits the day before the hardfork - it's in their account with the correct memo, but it doesn't show up on the exchange. :(
Many users of Poloneix knows about this practice, IDK why Polo use such policy but they do.
I know about this because of experiencing the same and hearing from many other users.
The time BCN went high Polo disabled it since the price was low of Cryptopia
The time SC was added on Bittrex then disabled the wallet to prevent arbitrage.
By time when you will see the prices almost equal on both exchanges Polo will open the wallet.
When Polo open the wallet again your deposit will be shown, you dont need to worry about that it happened to me as well with BCN.
Makes sense , thanks !!!
Thanks for this!
Pleasure :)
This makes zero sense. While it's true that arbitrage opportunities are executed across all kinds of markets (not just in crypto), this is certainly not what's going on here. If polo or other exchanges disabled their coins when arbitrage opportunities existed, they'd never have their wallets enabled. In crypto, there is such little volume on some coins that price discrepancies naturally can exist across exchanges. Plus, exchanges wouldn't suddenly shut down wallets when price discrepancies exist. In fact, traders executing arbitrage trades are precisely what closes the price discrepancies across exchanges. Finally, the entire reason why polo has such a lower price for STEEM versus other exchanges is exactly because polo has disabled the wallets. In other words, you have it backwards: it's not price differences that are causing the wallets to be disabled, it's the wallets that are being disabled, that are causing the depressed price on polo since the only way to get your STEEM off of the exchange is to first sell it to buy ETH or BTC and then move that currency to someplace like bittrex to rebuy STEEM (but this would occur at a loss).
Doesn't make any sense to me! What is the source of your information?
If someone is earning through arbitrage what's the problem to exchange with that??? Arbitrage will either lead a rate increase for Steem & SBD at Bittrex or lead to rate decrease in Poloniex but ultimately market will level it up. How closing an exchange for a particular currency can help the matter? There are hundreds of exchanges with price differences in almost all coins. That means every exchange should shut down all their trading? Even as on today, Steem & SBD are disabled on Poloniex. And I read a 10 months old post from @timcliff when these were disabled too.
So this explanation isn't making any sense to me. Would you please explain in more detail or just point me to source of your knowledge. Thanks!