Poloniex no cold storage for STEEM funds! $50 Million USD at risk in hot wallet!
If you have not done so already take a look at my previous post regarding Bittrex regarding them keeping all their users' funds in a single hot wallet!
I just took a look at @poloniex and realized they too follow the same practice of keeping all users' funds in their hot primary account/wallet! This seems crazy to me since liquid STEEM can be instantly withdrawn and never recovered in the event of a hack! This is a huge reason why Powering Up is a great reason as well, it prevents your Steem from being stolen immediately in the event of a key compromise.
Take a Look:
Over 14 MILLION STEEM valued at just shy of $50 MILLION USD is held in the primary account deposits AND withdraws are credited to/from. This means it is a hot wallet! A simple glitch or flaw in their withdraw daemon could result in the loss and theft of ALL STEEM held by these accounts!
Bittrex and Poloniex both outline they utilize cold storage and best storage practices and security methods but this is PROOF they do not! I have not used them in years but Poloniex has been hacked before and should know better by now!
I would advise everyone to withdraw their STEEM from these exchanges and Power Up their accounts! Storing your Steem in your STEEM POWER ensures you have 7 days before any theft can occur. Simply checking up every few days will ensure your funds are not being stolen from you!
hi @bigdeej , can i translate the important articles you made regarding shadowbot, for my romanian community? I am waiting for three days your answer...Thank you.
Sorry for the delay, that would be awesome we would re-steem them as well to our primary channel!
Is ok, i will get on it first thing as i wake-up. I.m glad i persisted in.contacting you:). Thanks @bigdeej !
unfortunately poloniex has not allowed withdrawal of steem/sbd for a long time now, which is one reason steem/sbd value has been on constant decline recently - the only way out of poloniex for steem/sbd holder is to sell it, and nobody wants to buy there because no sign is given it will be fixed any time soon.
looking here: https://coinmarketcap.com/currencies/steem/#markets
I noticed poloniex always has the lowest steem/sbd prices, and sadly all the other exchanges are following behind that constant decline, so not only is their security flawed but they have been undermining the value of our currencies by not allowing withdrawal and forcing people to sell.
meep
MEEP
meep
Boosting meep
Good advice man! Not a good idea to leave it there. I’m powering up.
Good like @bigdeej
Thanks for this really important update. I think people have to be careful although I feel people are over joyed by the stake of opportunity the crypto world offers
The question is will they listen and if they do will they do something about it? If Bittrex or Poloniex read this will they reach out to you and ask how to do it right? I know you have that ability but my bet is that they are either lazy or have a dark agenda....remembering MTGox that isn't to far out of the realm of possibilities.
True, having all of the steem here than exchange is always a safe bet.