How Are Witnesses Handling The Steem Price Divergence?
There is currently a huge divergence in the price of Steem between Poloniex and Bittrex. This is likely due to problems with withdrawals and deposits on Poloniex. In my view, the Poloniex price is not legitimate even though it's being favoured on coincap.io for example. It is more akin to a promissory note while withdrawals are disabled, and therefore not a reflection of a true price. This can result in an inaccurate price feed, although it presently favours SBD holders/converters over Steem holders.
How should Witnesses handle this situation and how are they actually handling it?
I think the best thing for the Steem platform would be for witnesses to analyse the number of complaints being issued against Poloniex and if significant to send Poloniex a message in the form of a policy or joint public announcement of some sort to set them straight. My latest article on Analysis of Steem's Economy
I don't expect witnesses to fix problems at Poloniex, that's asking for quite a lot. I am just concerned with the price feed becoming invalid. In this case it pushes the peg upwards which isn't so bad, but it could be the other way around.
Poloniex holds the world's 2nd largest long position in Steem and SBD at $38 million (https://steemwhales.com) and handles 60% of the trades outside of Steemit. They have not sent Steem to anyone in the past 6 days according to http://steemd.com/@poloniex so it looks strange. Hard to say if their Steem policy is tied to Segwit concerns or something else.
I'm using conductor and that uses the average of poloniex and bittrex.
https://github.com/Netherdrake/conductor/blob/master/conductor/markets.py
So my pricefeed is off and it seems this is the case for most witnesses.
Maybe I should alter it to only look at bittrex for the moment ...
Edit:
I only get the price-updates from bittrex now and the broadcasted price didn't change.
I didn't check, but assume the poloniex api was turned off while trading is locked.
I don't think the API is off because coincap.io is still using Poloniex as the preferred source.
The price right now at bittrex: 1.35 $, my pricefeed: 1.26 $ ...
You're right: I'm still using the polo pricefeed, too :/
Edit: Took me a while, but I have now adjusted my pricefeed to be only based on bittrex. As long as STEEM/SBD trading is disabled on poloniex, I will only use the price from bittrex.
Hopefully more witnesses will follow your lead.
I see this difference has been happening in the past few months but I have not seen the witnesses handle this kind of aquilion. When poloniex can not deposit SBD and Steem then the price start somewhat stable but if poloniex and bittrex together we can deposit sbd and steem then the victim remain in poloniex. Because that dipoloniex deposit more than bittrex. The witness should be able to balance the deposit between poloniex and bittrex so that the price of these two websites can be balanced.
People really need to stop using this exchange, especially for steem! how the hell does this shit exchange still process more than 60% of steem volume??
Poloniex should just delist Steem and save us the headache.
I was looking for an excahnge for my coin (zencash) since it is the product of the split from zclassic and before that zcash(ZEC) - You see what I am doing to prepare what is to expect come August 1st when the sme thing happens to bitcoin?
Anyways. I was picking between Bittrex and Poloniex. And glad I went with Bittrex because of all the hassle Poloniex has been lately because of the hardfork to Bitcoin.
Bittrex had there issues but have since resolved them when it came to withdrawals.
I am still hearing about Poloniex having problems from numerous of their customers.
Glad I picked The Rex instead. ;)
I love you, man! You always care so much about the platform!
Poloniex sucks just that
Poloniex is bullshit and I think there's something wrong with the withdrawals right now again.
Poloniex is evil lol
I agree I don't know what polo is thinking