Binance is spamming mempool - page 3.

NeuroticFish

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Quote from: stompix on November 15, 2022, 08:21:40 AM

Imagine you have $1k in 200 inputs, and this is one for hundreds of deposits, if they are running low on coins they must do this, there is no other way.

You do have a point, but they could:
* do much fewer batches of consolidation if they want to // no need to do all in one day
* do partial consolidations together with the actual user withdrawals (that would be imho a smarter implementation).

Quote from: stompix on November 15, 2022, 08:21:40 AM

Besides, isn't this what we're preaching for, for everyone rushing to get their coins out?

This is a good question and I will come with two thoughts (although one of them may need its own different topic) :
* many traders (ie not actual newbies) could think "if the mempool is this congested, why would I withdraw? I will have to pay a lot to send back when I want to sell" // maybe this is one of CZ targets?
* what if, while we were cheering this year for how much bitcoin has left the exchanges in 2022, this was more due stealing/working on fractional reserve than user withdrawals? (I know, this may be a bit paranoid though).

franky1

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for the subject of 'consolidating assets'

i can understand that exchanges might have multiple coldwallets of that exchanges customers reserves. and sometimes for audits its best to bring them all into a super cold wallet to show control of all the wallet funds..

nothing against that.

i understand they also have thousands of hotwallets (the on exchange customer deposit addresses) which can take alot of "spam" tx to sweep.

my concern over all is if an exchange has had alot of customers funds in wallets of DIFFERENT exchanges where they were using customer funds in other exchanges for one exchanges corporate profiteering.. which should not be happening

..
if binance is just sweeping deposit addresses to fill mempools.. yea he should have done it periodically over time instead of an all at once.. but i dont mind it too much as in a few weeks it will settle down

but if he is sweeping. and then moving those same funds again the same day, repeatedly.. then thats an assy move and true spam that is unneeded and unwanted by the community

stompix

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Blackjack.fun

Quote from: NeuroticFish on November 15, 2022, 07:28:07 AM

Spamming mempool now means more panic to the average Joe in these days he's overly panicked. Does he want to make people change their minds about withdrawing from exchanges? Or does he try to cover some exchanges that can now claim withdrawing issues? I don't know.

As much as I dislike CZ and Binance, spamming is not really the word here.
I said it when the FTX drama was going down, with everyone rushing to get their $10 or even $5 out of that exchange you're going to have a delay, and if the same happens now at Binance they have no choice as to start consolidating all the deposits of everyone to either pay up or use the satoshis deposited.

Looking at this kind of tx:
https://mempool.space/tx/0672e85e5f95fe7ad3bc3c23d39c1c0d499d00e00be6015fbb1def102446bc4d
Imagine you have $1k in 200 inputs, and this is one for hundreds of deposits, if they are running low on coins they must do this, there is no other way.

If they touch the cold wallet there is panic!
If they touch the reserve deposit there is panic!
If they consolidate the wallets there is panic!
If withdrawals are delayed for more than a day, there is panic!

Besides, isn't this what we're preaching for, for everyone rushing to get their coins out?

And if he really wanted to panic the markets he would have put something double, what's an extra 20 BTC for him, especially since his own pool will be mining one-seventh of it?

yazher

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Quote from: Wind_FURY on November 15, 2022, 07:39:21 AM

It's either prevention for mass withdrawals, or the community became more paranoid after the second biggest exchange has scammed the community. For me, it's probably just coincidence. But if it's as a prevention for another exchange "bank run", then I believe the result would be a positive, not only for the exchanges, but for the community as well, no? We don't want another crash.

Let's just hope we won't see another bad scenario again because the timing cannot be worse than this after the FTX has been hacked and its users are in panicked, some of the people are withdrawing their funds from exchanges all around the crypto industry to prevent the same thing happen to them. We cannot blame them because they are just being realistic and the result will be a disaster if Binance will become like that's why let's not assume the worse rather we just hope all goods for them.

Findingnemo

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Bitcoin = Financial freedom

Quote from: hZti on November 15, 2022, 08:06:33 AM

Quote from: ABCbits on November 15, 2022, 07:55:30 AM

Quote from: DaveF on November 15, 2022, 07:37:56 AM

Or is he trying to combine his coins for when people start to massively withdraw from his ~~scam~~ exchange so he can charge his users massive fees

I just checked their current BTC withdraw fee and found it's 0.001BTC (about $16.9). I'm sure the fee was 0.0005BTC or lower few months ago. It's unlikely they perform consolidation with such high fees, so your speculation could be right.

Those fees are a massive ripoff if you consider how cheap you can send bitcoins and also how important it is for people to move the coins from the exchange as soon as possible. So far it seems tja there are more coins flowing into the wallets than out of them.

Making money while ripping other people by forcing them to pay a lot or wait for days.

156 blocks? That is the biggest number I have seen in this year! And it seems still the consolidation is in process cause incoming transactions doesn't seems to be decreased.

hZti

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Magic

Quote from: ABCbits on November 15, 2022, 07:55:30 AM

Quote from: DaveF on November 15, 2022, 07:37:56 AM

Or is he trying to combine his coins for when people start to massively withdraw from his ~~scam~~ exchange so he can charge his users massive fees

I just checked their current BTC withdraw fee and found it's 0.001BTC (about $16.9). I'm sure the fee was 0.0005BTC or lower few months ago. It's unlikely they perform consolidation with such high fees, so your speculation could be right.

Those fees are a massive ripoff if you consider how cheap you can send bitcoins and also how important it is for people to move the coins from the exchange as soon as possible. So far it seems tja there are more coins flowing into the wallets than out of them.

ABCbits

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Quote from: DaveF on November 15, 2022, 07:37:56 AM

Or is he trying to combine his coins for when people start to massively withdraw from his ~~scam~~ exchange so he can charge his users massive fees

I just checked their current BTC withdraw fee and found it's 0.001BTC (about $16.9). I'm sure the fee was 0.0005BTC or lower few months ago. It's unlikely they perform consolidation with such high fees, so your speculation could be right.

The actual BTC withdraw fee is 0.0002BTC (about $3.4) for "Bitcoin" and 0.0005BTC (about $8.5) for "BTC(SegWit)". Thank you @DdmrDdmr for the correction.

OcTradism

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The massive waiting transactions in mempool only occured in less than 24 hours ago. Because yesterday, mempool is very clear and we can move bitcoin with 3 satoshis to 5 satoshis

https://jochen-hoenicke.de/queue/#BTC%20(default%20mempool),24h,weight

Binance (if it is real) did choose a good time to create panic on newbies. They will feel more panic when their transactions need too long time to get a first confirmation. Taking this congestion, I remind people to use an opt-in Replace-by-Fee (RBF) for their transaction. So if their transactions stucked, they can bump the fee.

Quote from: Wind_FURY on November 15, 2022, 07:39:21 AM

It's either prevention for mass withdrawals, or the community became more paranoid after the second biggest exchange has scammed the community. For me, it's probably just coincidence. But if it's as a prevention for another exchange "bank run", then I believe the result would be a positive, not only for the exchanges, but for the community as well, no? We don't want another crash.

It is not to prevent mass withdrawals. Exchanges already charge very expensive withdrawal fee on users. Their fees are fixed and expensive because they over charge users.

Binance did not reduce or increase their withdrawal fee on Bitcoin. https://www.binance.com/en/fee/cryptoFee

Wind_FURY

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It's either prevention for mass withdrawals, or the community became more paranoid after the second biggest exchange has scammed the community. For me, it's probably just coincidence. But if it's as a prevention for another exchange "bank run", then I believe the result would be a positive, not only for the exchanges, but for the community as well, no? We don't want another crash.

DaveF

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Crypto Swap Exchange

Or is he trying to combine his coins for when people start to massively withdraw from his ~~scam~~ exchange so he can charge his users massive fees and have transactions with fewer inputs, send out all of his withdraws at 1 sat/vbite anyway and they will be small and still confirm. In the end it costs them more or less the same, but it lets him screw over more people that way.

Either way, it's Tuesday AM where I am and it will still probably clear by the weekend so at worst it's a few days.

-Dave

NeuroticFish

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Although I've taken a quick look, this doesn't seem to be discussed, and I think it should.

It looks like Binance has decided to consolidate their wallets/transactions last night. It's something they do now and then, but the current timing could not be worse.
And from CZ I do expect to be a deliberate move (usually in his favor, not ours), but I don't understand the reasons. Spamming mempool now means more panic to the average Joe in these days he's overly panicked. Does he want to make people change their minds about withdrawing from exchanges? Or does he try to cover some exchanges that can now claim withdrawing issues? I don't know.

For better info on the context, it worth looking on this tweet and the subsequent ones and also the images:
https://nitter.it/OwenKemeys/status/1592223269310328833

Topic: Binance is spamming mempool - page 3. (Read 800 times)