Is the Poloniex Cryptocurrency Exchange a Scam? MUST WATCH
Crypto exchange Poloniex angered users by unexpectedly going offline
Crypto exchange Poloniex went offline without prior notice
Users did not receive an explanation and suspected the exchange of abuse
Market conditions indicate that there was no ill-intention in the incident
This morning, the cryptocurrency exchange unexpectedly and without warning stopped working. Some traders suspected the platform was being abused. Although market conditions allow for more innocent explanations for what happened.
Today, the American crypto exchange Poloniex went for unscheduled maintenance and was unavailable to users for some time. Despite the fact that by now all problems have been resolved, some traders suspected the platform of abuse, as the outages coincided with sharp price fluctuations in Bitcoin.
The first time the exchange went offline at about 00:00 GMT (three in the morning Moscow time). Now all functionality has been restored, but the GRIN / BTC market is still unavailable.
Traders are waiting for an explanation
The exchange first reported the outages via Twitter. Here is the post text:
“The Poloniex exchange is currently unavailable due to an unexpected problem. We are investigating the issue and will report back as soon as we have more information. Thank you for your patience”.
To its credit, the company reported regularly on what was happening throughout the morning. Four hours after going offline, the platform began to gradually revive.
In one of the latest reports, it was said that all markets were resumed except for GRIN / BTC.
The exchange tweeted:
“Initially, maintenance was tied to GRIN / BTC. After that, problems started with one of our service providers “.
This update was posted at 05:00 GMT (8 am Moscow time on April 24). Since then, no news has been received from the exchange.
Silence breeds suspicion
Interruptions in the work of crypto exchanges are far from rare. BeInCrypto’s editors have repeatedly reported such cases.
What they have in common is that they often occur during a massive increase in market volatility. In this regard, traders have bad suspicions of manipulation. They argue that exchanges are deliberately shutting down to forcefully stop the spontaneous movements of bitcoin..
There is another plausible explanation: sharp price fluctuations create high demand on exchanges, which leads to congestion at key nodes. Of course, this indicates that some exchanges are not ready for high traffic, but it does not necessarily imply foul play..
Today’s sudden crash on Poloniex coincides with market volatility. The first cryptocurrency settled above the $ 7,500 mark after a prolonged consolidation in a range below $ 7,000.
However, conspiracy theory looks more convincing in falling markets. Exchanges are interested in maintaining activity, especially when prices are rising.
But there is no point in stopping work in a growing market. First, the exchange makes money on the transactions of its clients – going offline deprives it of profit. Secondly, it is beneficial for exchanges when bitcoin rises in price, because it attracts new participants to the market..
So it is unlikely that today’s outage is a consequence of Poloniex’s behind-the-scenes play..
The BeInCrypto editors turned to Poloniex for comments, as well as to one of the most prominent representatives of the crypto community and exchange investors, Justin Sun. At the time of publication, we did not receive a response to our request.
Do you think the crash on Poloniex has an innocent explanation, or is it an evil intrigue of the exchange against ordinary traders? Share your opinion in the comments.