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Title: Poloniex margin lending socialized losses Post by: leowonderful on June 06, 2019, 07:41:32 PM https://twitter.com/Poloniex/status/1136695104238960640
Poloniex states a flash crash in the CLAMs market has caused an 1800BTC loss, caused by defaulting borrowers. The site has taken 16.02% of the principle of all active BTC loans as a result. Poloniex states this has affected 0.4% of users. Here is a Medium post further detailing the problem: https://medium.com/circle-trader/overview-of-btc-margin-lending-pool-losses-a2f0905aaa56 What do you guys think about this? I do not personally use Poloniex, but this certainly sucks for those using Poloniex. Hope those affected get their funds back. Title: Re: Poloniex margin lending losses Post by: Bitum on June 06, 2019, 08:41:36 PM Poloniex loses its last true users through such cases. At that time it was a market-leading exchange, and then in a very short time they lost their monopoly because they did not react in time to the market structure and did not adapt. Since it's just down. And if there are still such incidents that can be the last nail in his grave lid.
Title: Re: Poloniex margin lending socialized losses Post by: jinkyyy on June 07, 2019, 05:00:07 AM Poloniex is one of the first floors I join in the market, low transaction fees and fast speed friendly interface.
Gradually they started to have problems such as margin lagging floor margin of all kinds of user tricks that do not protect users like binance do. I mistakenly transferred my usdt wallet into my wallet, but they didn't help me to regain their poor customer care ability. They will not change and the number of users will become less and less. Hopefully they will change their policies and operations Title: Re: Poloniex margin lending socialized losses Post by: slaman29 on June 07, 2019, 05:14:46 AM I never really understand how this works. OK a flash crash I've seen, prices just go down suddenly, but how did this affect borrowers and lenders? If you borrow something you have to pay it back, that's all, right? So how is it people had to pay from their wallets? Doesn't the exchange bear these types of losses?
Title: Re: Poloniex margin lending socialized losses Post by: NeuroticFish on June 07, 2019, 05:48:24 AM I never really understand how this works. OK a flash crash I've seen, prices just go down suddenly, but how did this affect borrowers and lenders? If you borrow something you have to pay it back, that's all, right? So how is it people had to pay from their wallets? Doesn't the exchange bear these types of losses? Let's say that user 1 has assets worth 300$ (coin B). And borrows 200$ (coin A) from user 2. Let's say that user 1 converts the borrowed money into coin B too. So total 500$ coin B. Then suddenly coin B crashes and the old 500$ now worth only 100$. How can user 1 pay the debt? Well, he may get more coins from home or simply close the account. I guess that the code tried to sell user 1 assets at around 200$ but the sudden crash didn't allow that. I also guess that the code may not even have all the safety nets so the user ending up in debt will pay back next time he puts money into Poloniex! However, the lender is told somewhere between the lines that there's a "small" risk. I've seen that when I was lending some small amounts at Poloniex about 3 years ago. So no, the exchange will not bear these loses. Title: Re: Poloniex margin lending socialized losses Post by: jazmuzika217 on June 07, 2019, 06:33:12 AM This is the worst case scenario on Poloniex a true trader will stay away from this exchange site and switch from Binance or other trusted exchange site. I really disappoimted to Poloniex becuase this is my first exchange site I earn a huge profit but the site slowdown gone their user because of issues and problem encounter in their platform, lending is not considering a trusted services because the tendency to stole your money is high risk.
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