By delaying the release of our Trade API and other API's, we are throttling down the dumps from multipools.
But thats about all we can do. We cant confiscate somebodys coins.
If it is possible to identify an account that is doing the private dumping on behalf of the multipool (such is the case for Hashcows), then I see no reason why this action cant be taken. You would only receive positive reception from the people who are mining this individually and not part of an alt coin bashing army of multipool drones.
Hashcows was mining this when coinmarket was the only exchange trading it, so they most certainly are using your exchange to dump coins.
Those coins would have been mined anyway by the current miners, and just distributed between a smaller group of people. So they would have been traded at some point in time on your exchange, just maybe a little later when the value has risen. Would the exchange prefer 0.1% of 10M coins sold at an average 40 satoshi over a period of a week, or would they prefer 0.1% of 10M coinst dumped at 20? Simple economics.
The first exchange to do this and start confiscating multipool coins would have a massive influx of traders who want to deal away from the multipool effect.
If you dont think this theory can work, feel free to send me the source code for your exchange site, Ill set it up in the UK with a great big banner warning that any coins deposited from multipool sources will be confiscated, I'd send you half the commissions and Ill confiscate multipool coins if they can be identified. See where people decide to trade... As soon as one exchange does this, they will all have to do the same. Multipools will be crippled as they would have nowhere to trade without massive risk, the values of coins will be allowed to rise naturally and commissions to exchanges woul rise.
What are the possible negative outcomes? A bunch of multipool drones and owners get annoyed that their coins were confiscated? And, so what? If they were warned up front, then they can't bitch about it, and the miners would not want to be part of a pool that risked losing their efforts. The power to kill multipools and raise the value of coins is in the hands of the exchanges, it just takes somebody to be first.
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