Will Poloniex sink STEEM?

in steem •  6 days ago 

The Poloniex delisting was bound to happen sooner or later if the bear market for alts didn't improve significantly, but the low volume wasn't actually because of Steem at all. A lot of people might not remember but at around the same time Binance added Steem, Poloniex had the Steem wallet locked for many months which meant that there were many people who lost faith in it.

Here is a post I wrote a few days after the All Time High in regards to the Poloniex help desk. I had a transfer fail ( their fault) and at the time of writing, I was still waiting on th ticket to be seen 69 days after I added it. I did eventually get access to the funds again, but the wallet was still locked and it took ages to eventually get it out. Why the hell would I keep trading on Poloniex?

Having said that, it isn't great that STEEM is getting delisted from anywhere, but Poloniex has never been a large volume market, or at least for a very long time. When it comes to ETH trading, they are somewhere around 200th in volume, LTC 120th - I have never heard of CoinEgg... but damn they put some serious volume through ETH and LTC...

What is going to be interesting to see is what is going to happen on Bittrex and Binance as if you note the transfers of Steem out from the Poloniex wallet, most is going to those two exchanges.

https://steemitwallet.com/@poloniex/transfers

What is interesting to note is scrolling through the hundreds of transfers in the last 24 hours - very, very few transferred to a Steem account directly, it looks like 95%+ went to other exchanges. Ye of little faith.

Another interesting thing to consider is that there is still over 8 million Steem in the Poloniex account and while it stops trading there soon, 2 weeks or so after that the "grace period" to transfer it will be closed and I have no idea what happens to it from there. Do Poloniex claim it as theirs or, does it become a very large Steem sink - will they send whatever is left to @null?

That would be pretty awesome really (for those whose STEEM it isn't of course) as if for example 3 million STEEM was locked away, that would effectively be 1% of the entire supply. I do not know how possible this is, but I do think that there will be many who have gone crypto or Steem dormant and may never get the message. I don't know what the laws and the processes are for this, but it might become a decent sink.

image.png

As you can see from the STEEM markets list on CMC, 95% of the current volume is going through Bithumb, the Korean exchange that has locked STEEM but people are trading it backwards and forwards for some reason. If I remember correctly, it was also that exchange that drove the price of SBD up to 20 odd dollars (it has low supply so is easy to pump) and paid the highest price for Bitcoin back in the day - but, take that with a grain of salt as my memory might fail me.

While not a good sign to be delisted from any exchange, I think that in time it won't matter much if STEEM becomes one of the places that makes getting into crypto easy for the normies and, I don't mean for the trading. What many people forget is that the possibility to earn crypto in the way STEEM can and the expanding potential of SMTs and communities to come can put a lot of pressure on demand for Steem.

As I have said, I don't believe we need hundreds of millions of users to be successful, but if eventually that is what happened through SMT onboarding and cmmunities, the price of STEEM might be astronomical. But predicting price isn't an easy thing to do in an industry renowned for washtrading to attract investment interest by boosting transactional volumes and pump and dumps relatively easy to organize on any number of the thousands of shitcoins with no purpose out there.

However, regardless of price Steem still has a purpose and while many might not agree, the people of Steem take earning STEEM very seriously indeed. Not only that, they use STEEM to earn more STEEM and they use STEEM to interact and affect their investment through upvoting what they think is valuable, downvoting what they think is not, witness voting who they think helps and SPS voting what they think supports the ecosystem. Even if it is only on the Steem platform, STEEM has utility.

Some people see the Poloniex delisting as some kind of major blow, but I believe that most of that is a psychological issue about losses incurred and the fear of more losses to come. The volume itself was not very high on Poloniex and therefore didn't really change much of much. What I am hoping though is that with so much going to Binance and Bittrex, the trade volumes there increase so as not to get delisted from there also.

I guess that this is also one of the drawbacks of having a stakable utility coin because it will take volume off the markets in comparison to the purely speculative. With so much sitting on the exchanges waiting for some pump to sell though (100 millionish still?) the price is not going to go up any time soon and that means that the stake sitting there is not doing anything on Steem, but it is not going to likely be sold at these prices. This makes the decoupling from BTC very difficult because the only way it will rise in price is if dragged along with the herd, as the community isn't creating the demand for it through good usage to make Steem attractive and creating market scarcity which would drive the Steem economy to eventually be much more self-sufficient.

While not my area of expertise, I think that it can be these events that can drive the right people to stand up and act, and the wrong people to pack up and leave. For those leaving because Steem isn't worth enough to you, remember to lose your keys and add to the STEEM sink for the future or - just send it all to @null.

Hopefully Poloniex sinks whatever STEEM it has left over too.

Taraz
[ a Steem original ]


Onboarding

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

poloniex is shit exchange who cares ?

Never great to get delisted, even from a shit exchange

it becomes a shit exchange from when the poloniex owner taken decision to delist steem.

Not a very good evaluative formula :D

That would be handy if 8 million got sent to null. Surely they will just sell it as it is more than $100 000 worth or stake it themselves somewhere else. I have no idea what the laws are either if they give you x amount of time to claim and then you just lose it.

1+ million

It is still a fair amount of value to just say "we own it now" considering that they sent an email and gave relatively short notice. Might be interesting though. Looks like about 2 million has been taken out in the last 24 hours.

Lol. A small miscalculation there. Maybe there are no laws for this and just giving notice clears them of any wrong doing.

Wouldn't surprise me in the wild, wild west of crypto

This was a very interesting and informative post!

I think Steem getting delisted is a bit nerve racking, but not a panic situation.

I expected a larger market reaction to be honest.

This was a very interesting and informative post!

Finally!! :D

I think Steem getting delisted is a bit nerve racking, but not a panic situation.

It is one of the first listings (back in April 2016) so it has history and carries attachments for many. It was the first exchange I ever joined and where I successfully traded up a bit :)

I expected a larger market reaction to be honest.

Crypto winter - everyone is indoors burning their bags of alts.

Will STEEM sink Poloniex?

:) Eventually.

Interesting read @tarazkp

I've never heard about any earlier issues between Poloniex and Steem.

Why the hell would I keep trading on Poloniex?

And did you still use Polinex after your experience?

This delisting surely will bring some fear and as a result some additional selling pressure. Let's see how things will play out. I'm very curious.

What is interesting to note is scrolling through the hundreds of transfers in the last 24 hours - very, very few transferred to a Steem account directly, it looks like 95%+ went to other exchanges.

I'm failing to understand what would that mean. What consequences should we expect?

That would be pretty awesome really (for those whose STEEM it isn't of course) as if for example 3 million STEEM was locked away, that would effectively be 1% of the entire supply.

Perhaps it would create huge wave of panic.

Upvote on the way,
Piotr

And did you still use Polinex after your experience?

Nope, as soon as I got my Steem out I didn't look back.

I'm failing to understand what would that mean. What consequences should we expect?

No consequesnces except for the accounts of Binance and Bittrex hlding ore and perhaps some more trading volume on them. The point is that most people didn't move it back into Steem, they went straight to another exchange.

Perhaps it would create huge wave of panic.

I don#t think it would be panic, except for those whose Steem it was. THe rest of us benefit from Steem being destroyed or locked as it increases scarcity.

No harm done with this one, but still if there is concurrency and steem would be spread all over it would be better I think. Still, there are other powerful exchanges trading steem so we are quite good.

Well it looks like it does have some effect on the value of steem today! While holding pretty great compared to BTC and ETH in the last days, we are now going in the opposite direction.
Most Steem will be moved to another exchange. Can't find a reason why a person would suddenly use it to power up, when he/she didn't in the past two years!

Cheers,
Peter

. Can't find a reason why a person would suddenly use it to power up, when he/she didn't in the past two years!

It forces action. The default could have been to keep it liquid and now they were forced to do something.

That could be the case but I doubt it. Looking at the value of Steem this morning, I do think that most did move it to Binance and are selling it! :(

Can only sell once :)
Hopefully it ends up in hands who want it at the time it makes the most impact to hold and utilise

  ·  6 days ago (edited)

which meant that there were many people who lost faith in it.

Do you have Poloniex confirmation about that? If I remember well that was during/after the Poloniex acquisition by Circle and their complete reorganization when Poloniex just worked or didn’t. In neither cases did they care much because they were focused on the whole rather than on some pennies commission from trading after needing to fix nodes because chain had gone down?

That said, Poloniex hasn't been relevant to STEEM anymore ever since Binance. $60k trading volume on $18m is nowhere statistically significant. Or of relevance even.

It was the exchange many were using. I remember the chat conversations from 2 years ago. I was surprised there was still 10m there so am wondering how much will move.

Yes, it was the first to list us. And they had volume when they still mattered.

But what is more likely to have happened: when they reactivated the STEEM node, they had also switched to compulsory KYC. Those with little who preferred Bittrex [then still without KYC], and later Binance [still now without KYC], may have decided to take it on the chin as they already previously may have written it off. Enforcing KYC on an exchange results in users shifting to other exchanges.
Blocktrades also happened before they reactivated STEEM node.

Many don't use Korean exchanges due to the KYC as well.

Yep, that is a good point. It would have been around that time that the wallet reopened I think.

Steem being delisted is a little nerve racking. But if the community continues to stick together maybe it can survive, I hope so, I enjoy the interaction.

Steem survival isn't much of an issue at this point

Does Bithumb still have Steem withdraws locked?

I think so. I have never used the exchange but I assume that since it is 15% up in price there, if it was open the transfers from Poloniex would be heading to Korea.

C984B6B2-40D8-4E08-8A0B-FED6B7D628E3.jpeg

Informative post, thank you. The information puts this news in perspective and makes it less worrisome. I must admit that part of me thought it was bad for our image to be delisted even if the low volume reason fir the delisting suggested they were an insignificant exchange for Steem user trading. So I am pleased to find my reasoning about cryptocurrency is getting better. I believe that Coinexchange is closing soon also.
It’s been a very rough Altcoin winter and the lack of a. bounce and any real upward movement in Alts when BTC bounced off 3999 and went to 13k hurt even more.
But the irony here is Steem is bear market priced while there is bull market like activity and development.
Feel free to read my post
✍️

I think a lot of the smaller exchanges are going to struggle to compete and thus, make sure you have your coins safe in wallets.

But the irony here is Steem is bear market priced while there is bull market like activity and development.

Yes, it is an interesting contradiction.

A bit off topic but would it be an option to bring in more Staking rewards to Steem like creativecoin is doing. Surely getting Steem off the exchanges and locked up would be good for Steem and for those who believe in the network.

Off exchanges is a good thing for scarcity, but not necessarily great for trading volume. If price was higher, it would be different. However, since price isn't likely going anywhere soon with stagnancy, maybe it owuld be better to bring the stake on, use it well on the platform to create some activity and improvement as well as create scarcity. Better than it just sitting there waiting, although it does mean that those with stake on the platform now have more value for their stake.

As I have said, I don't believe we need hundreds of millions of users to be successful

Said no wise businessman ever.

Offer some context then and school me on business wisdom.
Perhaps a road map and some financial data might be relevant to add.

will they send whatever is left to @null?

haha. I hardly believe that will be the case. Openledger pocketed a million STEEM so im pretty sure Poloniex will pocket the 8 million.
Its actually a brilliant tactic. You make a exchange, shill it, have it function for a couple years and then start delisting tokens on a short notice. Pocket whats left.
Im pretty sure that exchanges make more by delisting a token like STEEM then they would trading it for a decade.

Yeah, i don't think they will burn it either. I have a feeling that many of the small exchanges are going to do similar and most will collapse as the larger take the lion's share of trade.

I hope steem will be 10,000 USD in 2030.

Good luck with that.

Binance is coming soon...

Posted using Partiko Android

I don't think so, since that was paid for afaik

Awesome news

Posted using Partiko Android

We have delisted poloniex even before it delisted steem, saw it coming, no need to explain why because the author has already gave the reason on his post

!trdo

Sorry @hobo.media, this post is older than 3 days, therefore, this post can't reward TRDO!

"Call TRDO, Your Comment Worth Something!"

To view or trade TRDO go to steem-engine.com
Join TRDO Discord Channel or Join TRDO Web Site