Bitcoin Forum
October 27, 2020, 11:53:37 PM *
News: Latest Bitcoin Core release: 0.20.0 [Torrent]
 
   Home   Help Search Login Register More  
Pages: [1]
  Print  
Author Topic: Why you should not send Ethereum using a SMART CONTRACT to most exchanges.  (Read 52 times)
xtraelv
Legendary
*
Offline Offline

Activity: 1148
Merit: 1775


฿ear ride on the rainbow slide


View Profile
June 02, 2018, 02:04:33 AM
 #1

Bittrex, Binance, Bitfinex, Coinexchange.io, Coinhako, Coinpayments, Cryptopia, Exodus, Kucoin,  Koinex, Ledger, Liqui, SimplexFX , Bithumb and Huobi all don't accept smart contracts. (Incomplete list).

What makes it particularly awkward is that some exchanges like Bitstamp,  Coinmama and Lykke send withdrawals as smart contract payments.

Bitstamps has the following warning when you send Ethereum.

Quote
WARNING: Do not send funds directly to exchanges which do not support smart contract deposits. Either check with the destination exchange first or send your funds to your private wallet.

A lot of exchanges warn:
Quote
Deposits from contracts currently unsupported.

It avoids problems if you send smart contract payments to MEW or a personal wallet and then to an exchange.

It will reach the other exchange but cannot be processed by them. Some exchanges will manually recover it. Some exchanges will charge a fee for manual recovery and some exchanges won't recover it.

A lot of exchanges do not accept smart contracts. There are good reasons for this.

With a NORMAL transaction the ETH is sent from the senders address via the blockchain to the receiver address.

With a SMART CONTRACT  a 0 ETH transaction with instructions (code) is sent to the CONTRACT address. The contract address then executes a internal transaction (code) to the receiver address.

Smart contracts also don't have just a single way it can be coded - or by who. A smart contract is custom code.

Smart contracts can be vulnerable for exploits:
Smart contracts leave millions vulnerable
Security Vulnerabilities in Smart Contracts
Smart contract exploit training

NORMAL transaction and how it appears on the block explorer



SMART CONTRACT transaction and how it appears on the block explorer





It avoids problems if you send smart contract payments to MEW or a personal wallet and then to an exchange.




We are surrounded by legends on this forum. Phenomenal successes and catastrophic failures. Then there are the scams. This forum is a digital museum.  
* The most iconic historic bitcointalk threads.* Satoshi * Cypherpunks*MtGox*Bitcointalk hacks*pHiShInG* Silk Road*Pirateat40*Knightmb*Miner shams*Forum scandals*BBCode*
Troll spotting*Thank you to madnessteat for my custom avatar hat.
Pages: [1]
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!