Multipool = Organized Pump Pool + Frontrunning Concerns

[tokyoghetto]

So a multipool basically pumps the price of the coins it mines. Its organized in the way that all the people hashing are pooling their BTC together, and letting the pool operator buy up the coin. My only problem is how fair is the pool operator being. They can load up on coins knowing that when they buy using the miners BTC, it will push the price higher. Then the pool operator can turn around and dump his coins to the miners at a higher price. This is called front-running and can cause the miners to pay a high price then intended.

So beware of Multipools popping up that might do frontrunning. Only trust professional pools that make it clear they don't front run on their miner's buy orders.

Discuss.

[cryptoglow]

sounds like blackcoin's multipool.

[tokyoghetto]

I wouldn't be surprised if Blackcoin multipool did some front running during that crazy rally. Imagine being the pool op, with 100s of BTC in buying power, knowing that you can pump the price to pluto.

Pool Op buys up some BC, pumps the price of BC to da moon, then dumps. Meanwhile the Multipool miners get the raw shaft.

This is even better than scam IPOs.

[traderman]

That thought did cross my mind about the pool operators front running.

I think it would be great of the multipool is showing the transactions as they are being executed and distributed to miners.

I wouldn't be surprised if Blackcoin multipool did some front running during that crazy rally. Imagine being the pool op, with 100s of BTC in buying power, knowing that you can pump the price to pluto.

Pool Op buys up some BC, pumps the price of BC to da moon, then dumps. Meanwhile the Multipool miners get the raw shaft.

This is even better than scam IPOs.

[dzimbeck]

this is totally stupid without any proof. The operators of the pool stand to gain more by just supporting the coin. Sounds like a conspiracy theory. Besides what agenda do you have starting this thread?

[traderman]

When there are large amount of money involved anything is possible, it would be great if the multipool can show as it is buying the BC from the exchange, that would aid in transparency and it would be a great show to watch and promote Blackcoin even further. I think this is needed badly to boost confidence in Blackcoin.

this is totally stupid without any proof. The operators of the pool stand to gain more by just supporting the coin. Sounds like a conspiracy theory. Besides what agenda do you have starting this thread?

[tokyoghetto]

this is totally stupid without any proof. The operators of the pool stand to gain more by just supporting the coin. Sounds like a conspiracy theory. Besides what agenda do you have starting this thread?

its a highly possible situation. A pool op can make tens of thousands of dollars by front running than from just charging a fee for running the pool. I started this thread to make people aware, as front running forces multipool miners to pay higher prices that are manipulated by the pool operator. There is no proof because multipools aren't transparent, nor do I know how they can be transparent. Multipools can't announce the buys before they buy because traders will just front run the pool. Its a tough situation we find ourselves as multipools become more popular.

people should be thanking me for bringing this up, sometimes I don't even know why I bother to help this cesspool anymore.

[djslick]

I've met the lead developer of the blackcoin multipool IRL, and he's explained to me how the algorithm works. there's no emotion in it, it just analyses many factors to see when it should buy, it tries to get the most for it's miners ie greed. it's fully automated and happens dozens of times per day, they are not programming it to do certain actions etc so they can profit. They are a very honorable professional team which has done wonders to bring this coin into the limelight and to the moon. if you ever have any questions of concerns, the devs and community leaders are always chilling in their IRC 24/7. i'd advise you come check it out instead of spreading rumours.

[Soepkip]

I've met the lead developer of the blackcoin multipool IRL, and he's explained to me how the algorithm works. there's no emotion in it, it just analyses many factors to see when it should buy, it tries to get the most for it's miners ie greed. it's fully automated and happens dozens of times per day, they are not programming it to do certain actions etc so they can profit. They are a very honorable professional team which has done wonders to bring this coin into the limelight and to the moon. if you ever have any questions of concerns, the devs and community leaders are always chilling in their IRC 24/7. i'd advise you come check it out instead of spreading rumours.

+1

Yes, the multipool guys are very professional. What good would it do if we would do front-running? We'd profit a few days and then miners would flee the pool as it becomes unprofitable for them. We want to built a multipool that kicks ass, no reason for us to kill it with these kind of schemes.

[tokyoghetto]

I've met the lead developer of the blackcoin multipool IRL, and he's explained to me how the algorithm works. there's no emotion in it, it just analyses many factors to see when it should buy, it tries to get the most for it's miners ie greed. it's fully automated and happens dozens of times per day, they are not programming it to do certain actions etc so they can profit. They are a very honorable professional team which has done wonders to bring this coin into the limelight and to the moon. if you ever have any questions of concerns, the devs and community leaders are always chilling in their IRC 24/7. i'd advise you come check it out instead of spreading rumours.

I wasn't attacking Blackpool, just using it as an example on how front running might be possible. I see that blackcoinpool does use an algo to determine when to purchase BC for their miners. Its all there in the FAQ section of the website.

Like I mentioned, I am advising people to use professional pools and to be aware of frontrunning multipools that might pop up.

[dragonmike]

While you theoretically have a valid point, I believe you are mistaken when it comes to the buying power of the multipools. Let's take blackcoinpool for example (which I currently mine on), let's do some math based at the top of the BC "pump":
- blackcoinpool payout per Mh/s: 7.23 BC
- blackcoinpool hashrate: ~11 Gh/s

This translates into a buying power of ~80'000 BC.

The volume on Cryptsy (I'm not even looking at Mintpal!) on that day was almost 1.2 Million BC.



What the multipool had to buy on that day was not even a blip on the BC chart.

Hope this put it all into perspective for you.

[defaced]

I'm sure they front run a ton.

[newuser01]

I've met the lead developer of the blackcoin multipool IRL, and he's explained to me how the algorithm works. there's no emotion in it, it just analyses many factors to see when it should buy, it tries to get the most for it's miners ie greed. it's fully automated and happens dozens of times per day, they are not programming it to do certain actions etc so they can profit. They are a very honorable professional team which has done wonders to bring this coin into the limelight and to the moon. if you ever have any questions of concerns, the devs and community leaders are always chilling in their IRC 24/7. i'd advise you come check it out instead of spreading rumours.

Guys everything is OK

djslisk met dev and he says nothing like this is going on and he must be telling the truth. Nobody would lie on the internet right?


OT: I can see this happening.. people pump shit coins to oblivion and risk losing money, this way is free money..