This week Circle purchased the alt-coin exchange Poloniex for 400 Million USD.
At the time of this post there were 50 million USD worth (14,479,783 STEEM and 471,577 SBD) stored at Poloniex account @Poloniex
Poloniex.com was one of the large exchange allowing STEEM and SBD trading.
Poloniex's STEEM wallet has been neglected / "Under maintenance" for more than a month.
(Last outgoing transfer was on Jan 27th)Circle is a Goldman-Sachs backed company thus will have stronger commitment KYC/AML regulations.
People trading cryptos prefer to be anonymous so a lot of accounts might be registered with fake identities. There is a very high chance that the new administration will want to strengthen identification requirement and freeze some account awaiting of further verification.
Transition risks, When exchanges change ownership and change operation team members there is an increased risk of major fuck-up like insiders hack and crypto theft.
Right now the only way out of Poloniex for STEEM holders is to SELL their STEEM/SBD and withdraw through functioning cryptos like Bitcoin.
For as long as Steem wallet is offline and the transition is happening I expect prices to be be lower at Poloniex and for other exchange to sadly follow Poloniex prices.
On the good side, the extra cost you'll be paying at other exchanges will most likely turn out to be a great discounts once "Poloniex 2.0" fixes it's Steem wallet and improves overall.
Brighter future:
Given how bad Poloniex customer support was, how little improvement they made to their exchange and the very few new coins support I think it can only get better.
Circle has a very solid banking relationship. If they enable Fiat on-ramp it would make STEEM market much more easily accessible to outside investors.
Thank you for sharing this @transisto, I had read about this a few days ago and I feel very positive about Circle buying Poloniex - they have a pretty solid track record and have overcome some issues in the past, so I am confident that they will do well.
I know some people who work at Circle, and honestly I was worried about them jumping on the bandwagon and launching an ICO out of thin air; not a good long term strategy. Seeing that they are buying an exchange first (maybe they won't ICO, but I presume they will do something similar to Binance if they do) is a huge positive in my opinion.
The thing is with Circle is that they will have a huge use case regarding the tokenomic properties of their tokens, and as well as that they should have relatively large volumes trading immediately due to the popularity of Poloniex.
I agree that there are positives and negatives regarding the current price of STEEM because of the acquisition, but at the same time if Circle introduced a FIAT gateway this could drive the price up.
What could possibly go wrong?
Dear Lukebrn,
very informative comment, I am 53 years old and it is a new world for me. So I try to learn from you young people, This comment can make me picture more clear.
I will follow you and read yours all Post so I can have more information.
Greetings from Berlin.
Welcome to the club, I'm on the same boat as you are - just starting.
I will follow you, and we keep in contact
Greetings Joshi
Welcome to steemit and I like to the people who doesn't think like they knew everything, you're one of them, and you doesn't feel shy to appreciate young people who know new things. Thanks.Hi @ayurvedajoshi
Dear r-k-m, <3
I will follow you and try to learn new things from your post.
Today I try to open an account to buy cryptocurrency and one exchange. It is hard for me to folloe, i try to learn from youtube. ;-)
Greetings from Berlin
New Young genration is very smart.
Thank you and I help my best if I can.
Those younger people were born a smartphone on their hand:). It is kinda weird to see how easy they are using different kind of apps, sites, whatever, as easy as I can drink water. Personally I'm far away from knowing everything and able to do anything. I'm a very slow learning things, but when I learn something, then I just realize how simple or easy something is. I'm a thickhead,lol.
You and I are in the same boat. We know we can't let the world pass us by, but the learning curve is steep.
I will appreciate if you follow me. I am still learning
I will appreciate if you follow me. I am still learning
Wait, could you run that by me again? I didn't catch it the first two times.
lol
Ha ha, we are a lot alike -- I am still learning how to upvote!
I'm also trying to "survive in this jungle" :)
You and are of the same age and we are here for the same reason.
I will appreciate if you follow me. I am still learning
meow
wonder now that Poloniex is under new owners if they will answer support tickets... as I never ever got an answer to any tickets when I submitted them... that is why I do not use Poloniex anymore for a long time.
Yep, binance is currently Head and Shoulders above, will be good to see some seroius competition. If the Circle's token works any way like the binance or kucoin token, it may be worth acquiring some, as of now I know very little about circle, but that will change. Keep in mind also that Bittrex is upping thier game also and becoming a fiat on-ramp.
HODL..... EVERYTHING IS GOING UP. BEFORE IT GOES DOWN
Easy....mining. More fun with friends!
Computta
https://computta.com/?ref=268161
These guys have really figured this out. You can make money while you sleep, Just signup Download the free miner. There is never a fee. (not to sound like a shill) This is like a money drop! I will post again with details of my profits.
TRY IT>>>!
i am hodling i hope things go up too! computta.com how to you know it is safe to download?
IDK How do you define safe!
Safe! I guess it might not be. sell your bitcoin turn off all electric appliances.
Reissue tin foil hats to the family unit.
The only safety we have is trust in god!
lol i meant does it have viruses? its not worth it for me anyway thanks 6 dollar a year not worth it
I think, big fishes can controll the other investmen because of buying!
I'm glad I took everything out of Poloniex recently
I couldn't believe how much money just a few bucks worth of altcoins from 1 year ago were worth now :sunglasses:
Absolutely, it is insane!
Transfer your STEEM to Bittrex
68d09a0588ac49378b4 - Taking donations
I heart Bittrex!
i get my steem from binance. i think i have a few on bittrex. I have always wondered why there aren't any steem wallets for phones and stuff. or am i just not hip?
???
!!!
all lies no money comeing in from outside , that the true :P
i hope steem does go up. With Goldman-Sachs behind Circle it is interesting what they may or may not be doing. But from experience Poloniex has a ridiculous withdrawal fees so i never used it!!
what do you think about this? @cleverbot @banjo
About what?
Goldman is not getting into this game to simply allow a substandard entity to continue that way.
The big question few seem to ask about this deal is why is Goldman doing it? Many seem to think to get into the crypto game....to learn who has tokens...etc...
I think the answer is simiple...trading profits. Goldman wants them. There is a lot of money to be made trading crypto and this is what Goldman seeks. Their trading department is one of the most profitable aspects of their business.
I didnt know about the STEEM wallet...thanks for that information. I am not too concerned about the price of STEEM...I just posted an article how Steemit was in an article yesterday on Bloomberg's site. Publicity is starting to come.
Selling pressure is never a good thing if one is looking long. It might take a while for this situation to clear out. Of course, right now, it seems the bigger bear in the room is the fact that BTC is stalling out. That is still a main driver for all the crypto world.
As a long term holder of STEEM, for me, development is the most important thing. The ones who are hacking away at code are the ones creating the magic.
Thanks for this post.
Trading profits will not help them saving their business model, once it gets disrupted. Not too far in the future, trading will anyway take place on decentralized exchanges and even peer-to-peer. And this for all assets, not just crypto. I´m not sure wether they grasp that already.
I agree with you @shaka.
Of late, I am on the decentralized bandwagon. This is what we need to promote to the masses. Most of them buy into what the MSM tells them which is driven by the banksters. They are going to be warned about how dangerous decentralization is with no authority to oversee the bad players etc.....
As for them grasping it, I do not believe the banksters have any clue. Their arrogance gives them a bling spot. Plus, every threat in the past 100 years, they were able to legislate or buy their way out of. Why would they think this time any different?
Of course it is...which means they will be caught totally off guard.
Decentralization is simply too powerful for them.
The truth is that, after trying to understand this, I have realized that it is something that revolutionizes all forms of human communication. Right now we can create decentralized companies, States through lines of code, return to remunerate those artists who were left without digital rights after the Internet boom, reinvent unions ... and much more.
A couple of examples that could be implemented on this structure in which society would radically change the way it works ...
The first type of organization I can think of would be a company through which I can join with other people to create wealth and share the benefits transparently.
The second would be the classic State, but with decentralized voting systems and the owners of the State would be its shareholders, and could even negotiate the services that the state provides them and the commissions, which are no longer imposed.
Greetings from VenezuelaI hope you correct me if I'm wrong about something after reading them to you @transisto @ taskmaster4450 @shaka
I will go you one further with the company idea.
How about forming a company on the blockchain that has nobody running it. That is a DAO 9or DAC). It is purely code that makes decisions according the the decision tree programmed in. The company is overseen via consensus.
Steemit is somewhat in that form although not totally. But we can see that in the future.
As for the state, look up Estonia digital citizenship. It is already starting. At some point, we will see countries that arent established via geographic boundaries but by digital ones. Could steem be a country where people work, interact, shop, and play on it? We might see things forming around the digital realm as opposed to geographic.
Following for reference. Fascinating insight presented here. I was invited to try out Steemit less than 3 months ago and it has already become a positive in my life, even producing a well discipline I'm now exercising. Steemit presents a new lucrative venue for myself to produce a passive income stream to support and promote my artwork. In this way, Steemit has far exceeded my initial impressions, my expectations have elevated to prospective business plans.
I'd say leaving faith to following the former route when the way changes so much, there's too often lost of opportunities to those caught up in the terrain.
Have either of you picked up on @steembasicincome or @earthnation?
Time is Art. In Life, all we have is Time. Why not make Art all the Time?
Thanks to their loyal support, I am able to create a passive income stream that funds my creative output and delivers this original content directly to YOU.
I am a proud @earthnation Steemit Guild Community member!
Yup, selling STEEM when the prices go down wouldn't be the smartest thing to do when you think about all the potential it has. Since more and more people start to notice STEEM it's bound to be much bigger than for what it is right now...
We just gotta maintain a positive mindset and HODL our precious STEEM for the long term! I never even look at the prices of STEEM, because I don't care if it goes down a bit, because it will be worth much more in the future :)
You read my writings...I dont have a problem with a positive attitude about STEEM and dont think anyone else should either. It is one of the few givens in life (as long as the developers produce what they profess they will which I have confidence in them achieving).
I think too many people really overlook the nuances of what is here. The fact that STEEM is going to make all tokens created on here liquid means a vast amount of it will be pulled from circulation and put into the exchange pool. The fact that more than 60% of STEEM is held is SP means a great deal at reducing the liquidity of STEEM on the open markets...another thing to drive the price up..
Or that bandwidth is used in lieu of transactions fees...and that is priced in STEEM.
Haha, there's just so much to look at when it comes to predicting the price of STEEM in the future, it's almost impossible to remember and take into consideration everything that is already here and what will be added in the future... I'm very excited for all that is to happen on this Blockchain!
Yeah and then the technological shifts that we both know are taking place over the next decade.
What happens when unemployment due to automation starts to his with any degree of force? What are people going to do? Since nobody is talking about that now, turning to the government wont work since they will be too slow to react.
STEEM really is a great answer, especially for those who get in early like we are.
Powering up now will pay huge dividends in 6-12 months.
Yes, exactly. Technology is not going to slow down and we'll see a lot more automation and this will lead to more unemployment. Obviously STEEM is probably the best answer to solve that problem!
Yes. THIS is the mindset I also share.
Power up up up and destroy my slave debt, while building a sustainable life without the help of gubberment.
YES!
@biffybirdcam do you think people who agree with government would share that view of technology?
Development and a community that backs and uses it is what should give cryptos value.
Yeah, it totally should. But this has not really been what has been happening with cryptos in the last few years, so hopefully this will change. Steem has a great utility value, and I expect the market to catch up with this at one point, and then we hodlers will have a nice time :)
Goldman Sachs are a bunch of crooks who profit from others' misfortune. These guys send stocks plummeting by bad mouthing the company, then turn around and buy the stocks while they are down. I really don't get why anyone listens to these evil people anymore after the 2008 financial crisis. I certain am not happy about them delving into the cryptocurrency game. They are already pulling their usual crap; one minute saying that they wouldn't touch BTC ever, and now they buy an exchange. Slimy!
Agreed. I just see it as a good time to buy - it's almost asif it were summer 2017 again!
I agree STEEM is along term investment and BTC needs to lead the way. I think sideway action on BTC could be good since it ran so much.
GS is doing it to crush cryptos and protect the primacy of the USD. It's currency war.
Goldman, JP Morgan et al. realized the threat that crypto imposes on their businesses. Meanwhile they stopped to ridicule crypto, now they take action. They can't control the blockchains but the entry points into the markets. And they will check with great interest who these crypto-holders are.
Thanks for information
I learned my lesson and won't go back. Took almost 2 months to get my 3k STEEM back. I've never seen a company with worse customer support. To me, that shows a complete lack of respect for their customers who provide all the value they enjoy.
Thank god bittrex was up around that time. Poloniex was too complex for me as newbie.
I agree with you, @lukestokes. I don't get why a company would think that it is okay to freeze the funds of customers for almost two months. This is even worse than PayPal, which is arguable notorious for having a bad costumer support, yet it seems better than Poloniex's!
At least this buyout can only make Poloniex better, because it's not like they can get much worse at this point.
I was really worried, given the poor customer service, that this was a sign of really poor management and that poloniex was going to get hacked or have some sort of meltdown. This would have sent the cryptomarkets into a tailspin given poloniex is such a large exchange. I am more positive now with the new management.
I'm really glad your worries did not turn out to be true. I can only imagine how badly this would have hurt the entire crypto community.
The new management certainly has a big job with improving the reputation of the exchange, but I'm sure it can be done. While I'm not a big fan of the exchange right now, I certainly wish them well, and hope they are able to succeed with their mission to improve :)
I never use Poloniex myself but seeing your c0mparision with paypal gave me some insight.Paypay robbed my more than $10 K just because I wasn't from USA.
Yeah, never liked Poloniex and I sure wouldn't like it any better with Goldman Sachs getting involved in them.
It was only a matter of time before the banksters started moving into cryptos. Way too much money being made here for them not to get their taste!
I think poloniex steem quantity has out of balance.
Thanks for the information. When more people know about this, they will continue buying Steem at a low price and the price will come back up. This price of below 4USD is really out of character. You're right. It can only get better.
@transisto good one, I made a post on this topic as well, please check it out!
https://steemit.com/crypto/@liotap/circle-s-poloniex-acquisition-and-meaning-going-forward
okay, thank you that's a good observation for whats going on
I have steem stuck in poloniex, and have written a ticket. However, there is no response, that make me very disappointed at Poloniex. Considering that the trading volume of POLO is much lower than before, perhaps I won't use it in future.
Waiting to see steem pump to moon
I never got around to messing with Poloniex, and now I am glad I didn't. They might make a resurgence with the new owners, hopefully. No one is ever thrilled with increased KYC/AML regs, but that might be the new norm for exchanges going forward. Totally sucks. Hope everyone eventually has a good outcome with their trapped STEEM and SBD...
On the other hand, I'm glad I was already on Polo and got verified to a high tier. Opening a new account and getting verified to high tiers may get harder. In that case, I'm glad I had it done when it was easier!
Nice point...
Likewise. Out of curiosity, what is the benefit of keeping Steem on an exchange?
Never keep your crypto on an exchange. Keep it in a wallet where you control the private keys. The exchange could get hacked or the wallet could go into extended maintenance and then your trapped or worse yet you lose all your crypto...
That's how I feel too.
And, the exchange goes up and down at will. Cash out when it's high, sell when it's low. But don't keep it on there.
The only benefit is that you can trade it for other currencies pretty fast. Steem is already a very fast and free blockchain, so it's not really needed here at all. However, it can be beneficial to hold currencies such as ETH or BTC on exchanges, because then you can trade it for other currencies without transferring it from your wallet, and therefore don't have to pay transaction fees.
Yea though I noticed once that blocktrades didn't give me as good of a price as some of the exchanges per coin, according to coinmarket cap. But I really like the ability to buy directly not through an exchange, enough that a small price difference doesn't matter. One of the nice things about the Steemit platform -- it's really easy to get into.
What is interesting is that not too long ago cryptos were laughed at by high level people as being some kind of fake monopoly money. Now more and more they see the value.
Not one bit worried about steem!
We need other exchanges!
I never used Poloniex and don't plan to, but why should the low volumes there should have an effect on the STEEM price?
As a whole if we see, this acquisition of Polonix is good for Crypto Community as it will encourage more investors to jump in the space but yeah not good for steem price.
I hope steem price rises again
Great analysis to both bts rise on one side and steem down on the other side.
How low Do you think this price of steem would get?
This is bad for the price for sure! Thanks for bringing this to light! Once it gets straightened out, I would assume that could provide some upward pressure on STEEM! Thanks again for the post!!
I don't keep STEEM in Poloniex! So, never had this issue so far! But I like this KYC process, so it might have actual users only!@transisto,
Cheers~
What do you like about it?
A good way to handle multi accounts and scamers + hackers! (Hackers, I am not 100% confidence)
KYC - Know Your Customer.
Poloniex has that option, but with this acquisition, I think it's a must and it will make more legitimate type of business as well!@transisto,
Cheers~
I sold my Steem and SBD and transfered everything out of there with a day or so before I heard Circle bought Poloniex. I moved my trading to OpenLedger for now.
I'm anxiously awaiting BarterDEX to finish up too. These are both low volume, but I hope a lot of traffic starts heading to more DEX platforms and away from the KYC and bank traders.
Interesting times ahead for Steem & SBD...:)...
nice
and there's me thinking the price of steem was just reflective of the general weakness of the alt markets.
What is the issue exactly with Poloniex and Steem? Is it bandwidth?
@stef, thats the exact question on my mind.
They should be able to do thousands of transfers daily with that amount of SP, so it surely cannot be bandwidth issues.
It will be interesting to see how the crypto markets develop as the Goldman Sachs of the world enter to space.
Although I hate to see crypto's fail the ultimate mission of uncensored decentralized markets... the big financial companies should bring a lot of money into the market. I suppose more crypto profits will make us all happy hah.
Wait until SMT's come out with many SMT's being traded on the Steem blockchain... ;)
Clever theory! But I do not see much difference between Poloniex and other exchanges:
The last time they had their wallet closed for more than a month, steem there was cheaper by 10-15% https://coinmarketcap.com/currencies/steem/#markets
Steem is good in holding in long term
I didn't know that Poloniex stopped STEEM withdrawals because I don't like using Poloniex since their service quality went down several times in 2017, that's why I was using Bittrex or the better exchange Binance.Thank you @transisto for sharing this info with us.
But, I think Circle team will enhance Poloniex support service and bring it back to the normal mode but as you mentioned with real and serious Identity verification only.
That's why I guess Poloniex traders number will be lower than before.
And the best thing is STEEM started to go more popular in many new Exchanges like Upbit :)
Thank you again for your analytics about Steem and Poloniex info :)
I can't recommend binance. Regarding to my experience transfer to binance is absolutely unsafe.
https://steemit.com/steem/@palik/steem-is-now-on-binance-but-don-t-send-you-steem-to-binance-deposit-yet
An other one who got same issue
https://steemit.com/github/@palik/github-deprecates-anonymous-gist-creation#@crowe/re-palik-github-deprecates-anonymous-gist-creation-20180224t220331103z
Thank you so much, for telling me that, I didn't know that before abouy Binance.
I have steem stock in poloniex, i chose to leave it this way because I felt it's a temporary disable any will come up soon. I believe in the future of steem so I prefer holding it.
My account on poloniex is verified so I don't have any issue with the transition, I won't trade my steem for anything low.
Interesting your comment....... @samiwhyte
Price dip?? Fine by me...
This just means more time to earn while Steem is majorly undervalued ;)
Another exchange that is holding STEEM transfer on maintenance (longer than Poloniex) is Denmark based HitBTC. The effect is quite opposite, STEEM is on sell for premium ($4.34). I hope somebody will buy HitBTC too :)
This sounds like good news to me... I can see them drastically improving the exchange, which in my opinion is the easiest to use, but there were issues with freezing and customer service (the freezing seemed to stop a while ago). Since this is connected to the banks, if they were able to open up a fiat gateway and implement it directly into the exchange, this is very bullish news for crypto.
Interesting! Upvoted and followed!!
Overall there is a positive sentiment about circle buying polo. I dont think their userbase is going downside because AML/KYC strengthening . Goldman has long business experiences and they know how to cater customers (sadly this was the worst part with poloniex). So i see polo getting a revamped improvement soon.
Regarding price action on steem, i think the outage at poloniex withdrawal is temporary and almost anyone knows it too. This sort of tech outage creates arbitrage options but here its not the case . I think very few will try to sale out polo steem . Hence there will be little or no dip (thats just my opinion) .
Thanks for your article .
Don't like Poloniex and haven't been near it for months, in my opinion, a rubbish exchange.
Not surprised at all that Sachs is getting involved, at the end of the day they trade and are missing out on lots of $$$ in the crypto world and these fat cats want apart of everything.
Didnt know about the Steem wallet so thanks for that :-)
Hopefully now they can improve their customer services which have been woeful for years.
I hope you are right and this event is better for crypto in the long run!
This is very interesting! So you can only sell Steem for BTC but not withdraw? This happened to my friend. Time for some good discounts on Steem :D
"Poloniex.com was one of the large exchange allowing STEEM and SBD trading."
It had pathetic trading volume. It had nothing to do with the price.
Interesting article. Would love to see Steem keep growing on improvements as that would naturally buoy prices. I would love to see the community reward good articles beyond the 7 day period. Plus, if you find an article you love it would be nice to categorize this under a favorite but I guess you can do that with browser bookmarks.
I stopped keeping shit on Polo after all the issues in Late Nov DEC.
Steem and sbd price down and down and down . That not good news all steemit user. I am used poloniex . Good post @transisto
Poloniex should have left the wallet operational
Very interesting take on the situation. If what you say is accurate it's a great time to load up.
so its a buy then?
I have used Poloniex over the years, it is a great exchange, like you said, I think this can only lead Steem to better prices in the near future as Circle may bring in a new change, like you mentioned exchanging directly to crypto, even if they do not make exchange open to all coins, it would still add great value to Steem being it is also on an exchange that does accept fiat. Just hope that through the process, Circle learns from what other exchanges have done, and makes improvements, and does not fail the customers.
okay bro very nice article i use bittrex for exchanges
Poloniex blocking steem wallets is manipulating the price. Hopefully Circle can help something because Polo sucks.
thanks for the post
He is an adventurous world that can win and lose