Poloniex Issues Creates Inaccurate Prices on CoinMarketCap!
This Price is False, and here is why
Background; The Poloniex Issues
Since a few weeks now there have been issues with Poloniex; stating on their webpage on both Steem and SBD and recently also on BTS.
The BitShares Community raised the issue during the week, questioning if Poloniex had lost access to their assets in their cold wallet. A cold wallet is a place where you store coins that aren't accessible directly.
- Has Poloniex lost their access to their cold storage wallet? How You can join our testing!
- Poloniex still has access to their cold wallet! Get your assets while you can
Poloniex is stating the same issue message on their web page for STEEM and SBD as they did for BTS.
Why This Price is Not Relevant to the Market Price
As Poloniex has disabled any possibilities to withdraw funds from their wallet, users are forced to exchange it to another coin that is withdrawable. As the market is less reluctant to make new buy orders, the price drops significantly.
Current Markets and Shares
As you can see in the table below, Poloniex has roughly 60% of the market in trading, but are far away from Bittrex that has around half of that trading volume. An increased trading volume of Poloniex is also a sign that people are leaving their exchange, dumping their assets and crashing their prices.
Real Market Price: ~$1.07/STEEM
| '# | Source | Pair | Volume (24h) | Price | Volume (%) | Updated |
|---|---|---|---|---|---|---|
| 1 | Poloniex | STEEM/BTC | $614,422 | $0.947412 | 58.87% | Recently |
| 2 | Bittrex | STEEM/BTC | $335,167 | $1.07 | 32.11% | Recently |
| 3 | Livecoin | STEEM/BTC | $47,341 | $1.05 | 4.54% | Recently |
Source: https://coinmarketcap.com/currencies/steem/#markets
Steem Backed Dollar
The price on Steem Backed Dollar is equally dumped on the Poloniex exchange, making the average price look way below the actual price.
This Price is ALSO Very Inaccurate!
As can be seen in the table below, the price on Bittrex is around $1/SBD, just as expected. The price on Poloniex is a staggering $0.64 at the moment, a huge sign that people are leaving their exchange.
Real Market Price: ~$1.00/SBD
| '# | Source | Pair | Volume (24h) | Price | Volume (%) | Updated |
|---|---|---|---|---|---|---|
| 1 | Bittrex | SBD/BTC | $28,864 | $0.999765 | 53.26% | Recently |
| 2 | Poloniex | SBD/BTC | $24,981 | $0.649441 | 46.09% | Recently |
| 3 | OpenLedger DEX | SBD/BTS | $124 | $0.780001 | 0.23% | Recently |
Source: https://coinmarketcap.com/currencies/steem-dollars/#markets
What can be done?
There are a few things that I think we can do to mitigate this issue in the future, and here are a few more or less likely to be possible.
- Request that CoinMarketCap disable exchanges or feeds that are irrelevant.
- Request that Poloniex solve the issue with the wallet
- Send tickets for other exchanges to include STEEM and SBD to even out the trading volume
- Use the BitShares DEX and OpenLedger for more trading.
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BitShares: sc-ol 
just keep you assets far far away from poloniex always and forever..
If you still are stupid enought to use poloniex then get your assets out RIGHT NOW is my advice
If people used a decentralized exchange (DEX), like the one BitShares offers, we wouldn't be having this discussion.
Exactly!
Unfortunately DEX don't have enough volume for everything.
Does BitShares have STEEM and SBD?
And if they are so good, how come they haven't taken over the market yet?
I fully agree with that statement, and I think that is the effect we are seeing now. People are trying to abandon Poloniex and their only option is to sell SBD and STEEM to a lower market price than it really is. Their market is crashing as none will put buy orders on there.
However, if you believe that they will fix their wallet, and enable transfers again, this is a perfect opportunity to buy at a discount ;)
...Please don't use Poloniex!
Given how low the price is, I would no longer consider it a discount. It's more of a risk bonus, because there is a fair likelihood you will never see that STEEM or SBD again.
Poloniex is like a bad ex-girlfriend that just won't go away....ugh.
I've been watching the price of steem and how poloniex constant problems with stopping deposits is holding it down. Even as a newbie the price drops when suspended and rise when they enable transactions is easy to follow.
Glad you've now confirmed my suspicions that the problems of such a low price is down to poloniex being so crap at fixing this issue they are having, or have created.
Waited a month so far to transfer my bitcoin on poloniex, still waiting 😳🤣
I do hope they fix the issues so you can withdraw safely.
Thanks for advice, what can I use for transfer then?
There isn't much to do really. If you have STEEM or SBD or Poloniex you can do one of two things:
Poloniex is being super suspicious with SBD and STEEM, only opening for a few hours last time they enabled SBD trading.
I think the price of SBD on Poloniex at the moment makes it pretty obvious how low confidence in in whether people will ever be able to actually withdraw them. Could very well be a fractional reserve, due to loss of keys or otherwise.
Holding SBD on Polo is incredibly risky.
Poloniex is crushing?
Coinmarketcap should exclude prices of currencies with withdraws and/or deposits disabled. If they do not do this we should look for other price indexers.
Thanks for raising the concern. I was wondering why Steem was faring so bad lately. I didn't thought about checking it.