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RE: BLOODBATH IN STEEMIT'S INTERNAL MARKET - HERE'S WHAT'S GOING ON!
@msg768, you've been a busy little beaver! Lots and lots of great content coming from you, bro!
After I read your nice big post I penned a couple of Poloniex-tagged ones myself.
I really don't know why people are still using them, with all the published complaints, between reddit and here...
There are parallels between polo's timeline and a now-defunct major gold and silver dealer and I wonder why @poloniex has $50m in steem sitting in its steemit.com wallet
Is there something I don't understand about these exchanges that would necessitate the storage of the coins here? Is this what they consider "cold storage"? Who the f- owns all those coins??
Thanks! No one really knows who owns those coins but most of them are apparently for their clients who send them the coins and instead get credit on the exchange to trade!
That's what I think too... by definition that increases counterparty risk... they might allow a little more liquidity on their paper exchange while keeping the real deal out of their system altogether.. I would think their cold storage would be on segregated servers in their own possession.... I suppose they want steemit.com to be their freezer.
As far as I know, steemit.com is just a third-party interface that interacts with the steem blockchain. All exchanges work from an intermediary account so when you transfer them your money, technically you don't own your money anymore. They do and you will be at their mercy. I think we need to get the communities to rise up and support a completely fee-free and open-source exchange platform backed by people's donations. That would make a huge difference and would literally kill things like poloniex and bittrex!