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Dear users, please find my theory of insolvency of Poloniex in this post.

All comments are welcome, trolls also welcome, and haters more welcome than anyone.

Theory of Insolvency of Poloniex by Bolivarcoin

Its well know that poloniex its one of the exchanges with more traders, volume and visits.

https://i.imgur.com/bzO9mT3.png
alexa

https://i.imgur.com/GZ7GGML.png
coinhills

https://i.imgur.com/LZZV7IO.png
poloniex

Then, all this traffic and volume has considerable increase because China impose trading fee on Chinese bitcoin exchanges.

So going tohttps://www.walletexplorer.com/ (https://www.walletexplorer.com/) site and taking a look at Poloniex wallet https://www.walletexplorer.com/wallet/Poloniex.com (https://www.walletexplorer.com/wallet/Poloniex.com) i saw that the balance on the hot wallet has decreased considerably from 36000 BTC day 9-5-2017 https://www.walletexplorer.com/wallet/Poloniex.com?page=460 (https://www.walletexplorer.com/wallet/Poloniex.com?page=460) https://www.walletexplorer.com/wallet/Poloniex.com?page=1 (https://www.walletexplorer.com/wallet/Poloniex.com?page=1) to 4700 BTC today 15-5-2017

So how is possible that POLONIEX trade 300.000 BTC a day and has only 4700 BTC on his wallet?

They may be utilizing cold wallets. That doesn't necessarily indicate insolvency.

Also, that address holds only their Bitcoins whereas most trading volume on Polo is in ALT coins.

I stopped using Polo though for a different reason, because I got tired of them always putting hour(s) long holds on my withdrawls.

i agree with what CoinHoarder said, it is most probably in their cold storage and also walletexplorer doesn't show all their addresses. that site is good but it is far from a perfect tool (actually intentionally not good enough to force you to use their paid service).

besides poloniex people are pump and dumpers themselves. they don't live on fees! they make a shidload of money by pumping altcoins then disabling trades (fake DDoS) and dumping on their users :) or dumping in usual manners. so the money they make is ridiculous.

Cold wallets are expected by any competent exchange, so I guess that explains it. Anybody could look at that data and derive those conclusions.

I think they are just having problems due tons of new people coming to crypto and not managing the servers properly. They need to wake the fuck up tho, but to be honest, I don't feel any safer going to bittrex.

Having BTC in exchanges is a ridiculous risk no matter what, but I dont see any other way to take advantage of price swings but to have some BTC on the exchanges.

They should be making a lot of money to expand servers, my fear is that they have fucked up with margin trading and they may indeed be insolvent...

Hours long holds on withdrawals is a warning sign for me to start moving your coins out of the exchange. What reason do they have to start holding our withdrawals for that long? Poloniex is also attested as very slow and lags in situations of very high trading volumes. Many traders are already losing money by using that exchange for the last 2 weeks.

They probably do need more bandwidth and some server upgrades.
It would be interesting to see info on the number of users/ trades a day they are handling compared to this time last year.
So many new people are getting into crypto trading, they might have double the users they did in 2016.

Growing  pains more than insolvency I think.  But having so much concentrated in one place makes me uncomfortable. If poloniex really did fail the consequences would be seriously ugly.

That and the ban hammer joke... Furthermore there are all their insider games like with pascalcoin. And why can't they add PIVX? this last one is the strangest... Maybe a pascalplay (they wait to have loaded enough before adding it?).

The same way I've traded 12.7 BTC this month with only 0.22 BTC in my wallet. The same money are traded back and forth between cryptocoins.

maybe alts ;).

Same thing.

exactly :).

I have issues getting money off poloniex, it keeps getting stuck in the withdrawal process. I feel a bit uneasy about this...

check the service discussion section... seems to be widespread.

I am not sure why poloniex keeps experiencing heavy lags every day. I know users in poloniex have increased a lot but there is no excuse in having heavy lags every day. It is disruptive to the users which may encourage users to switch to another exchange instead.

Its the perfect excuse , their servers are crazy busy , they prob cant upgrade them cause theyd lose to much profit from possible downtime. Its like anything online , just trade less popular coins and think ahead cause busy coins have the worse lag.

What they need is a platform upgrade. Lags have already been happening in the exchange everytime there is extra high traffic. The promise that they will fix it but until now it has not been done. The platform itself might be substandard.

What other options are there for newbies? I burned my fingers with Yobit, but so far I have had a relatively good experience with Poloniex, except for lags and sometimes I cannot cancel orders.

OP, please delete, lock, or throw this thread into oblivion.
Even if I don't like much Polo lately and it may have troubles, your theory is completely wrong.
1. Trading doesn't mean buying. It can be traded in any direction.
2. Trading on Bitcoin market means the sum of bitcoin and altcoin trades. And, although it would be useless (see point 1) you didn't add the altcoin wallets to the sum.
3. You totally missed the cold wallets which any smart exchange would use on a large scale.

So again, bury this thread, you just scare the less experienced people away from trading.

Overloaded site. Too many ppl started using cryptocurencies, and every day there is even more... Poloniex can't keep up. Maybe in time, but still, there is much more people that will come, so they will have to limit the players on their site, or get a bigger team, to keep up with the needs/demands.

https://poloniex.com/press-releases/2017.05.16-Industry-growth-and-its-effect-on-Poloniex/ (https://poloniex.com/press-releases/2017.05.16-Industry-growth-and-its-effect-on-Poloniex/)


I am a newbie so what do I know but I also have a little experience with developing websites and this level of growth would be difficult to keep up with especially considering Ddos. I am reading that some of these attacks may be fake but even so I would imagine that they get many real attacks. I have experienced some lags and they are always irritating and sometimes an opportunity cost but still making money so I am not too unhappy about it. I am one of those 600% new traders.

When you say hour long holds on withdraws, how much btc are you withdrawing? Their limit per daily withdraw is 2,000usd worth of anything if you dont verify anything.

How much arw you withdrawing? I have sent .22 there and taken it out in the same day(after making a nice .04 btc profit). I had no issues.

Their site is laggy at times. I have been using it for a week now. It has happened a few times. Most likely it is due to a lot of traffic. Other than a few times, the other 50 or so times i was on and trading was fine. I go on it every few hours.

got tired of the lag. pulled the last of my trading/lending coins out today.

pity i liked polo. maybe it will come back better sometime in the future.

Do you really think Poloniex is faking ddos / block users at the peak of a pump?
That would be a serious scandal.

There is Bittrex for the newer and latest cryptocoins and BTCE for the older and well established coins. Poloniex is not a good exchange for high volume. You will surely lose some bitcoin value there. Others speculate they are slowing down the site on purpose.

To me it looks like MTGOX all over again, first there were excuses about the trading volume which everyone believed in, and then one morning there was Mark saying he's sorry.

they now have over 10,000 more users online than when the problems started and i presume it takes weeks or months to get more staff and upgrade servers. they should either restrict users online or new signups until they've got their shit together.

i still think it's a genuine capacity problem. still, no one should be leaving coins on there.

What they really need to do is prioritize browser based input over api calls. But that is the greed factor.

POLO is great if you think lag and trust are not issues :)

50 hours and I still have "awaiting approval" for the sum of 0.1 btc, I mean, it's not even a significant sum.

Lol that's nothing, I am waiting 3 weeks for my verification 2 approval...