Topic: Poloniex Reward - [Reduce your exposure to Polo] (Read 1962 times)

True 100BTC a day maybe but then their expenses may be 90BTC a day who knows are they transparent about their finances NO.  You just don't know and because of that you have to take EXTRA EXTRA precautions with these exchanges.  If they were more transparent if could verify their holdings something I would not be reducing my exposure right now.

Do not fall into the trap of guessing solvency since they are number 3 in volume it's meaningless unless you see the books.  My procedures have saved my ass 3 times so far and really I forgot I did take a big hit on an exchange way way way back in the early days.  Bitparking was the biggest namecoin exchange and I lost 50,000 NMC when it collapsed valued at the time 615 BTC and bitcoin price was at 200ish level.   (Odd how I totally forgot about that!) So after that burn I never got burned again. 

Cheers

Davinci

To me they are the biggest alt exchange and they have a lot of BTC liquid everyone is going to them why scam not saying they couldn't but why there is no competition and there probably bare minimum making 100+ BTC in fees a day so they are making a lot of money.

Ah.  Sorry I didn't realise that, I thought it was funny nobody else had just done a whois 

If you are behind CloudFlare the IP address you get is not the IP of the real server, it hides your server's ip address and hosting company.  The IP address you get is not from pinging Polo is not their server and the thus you are not even close.  Thanks for trying though.

I've already replied on the other Poloniex thread:


I have since done a reverse IP lookup and the only other site that appears to be hosted on the same server as Poloniex (IP 104.20.13.48) is http://extranet.feldent.com/

Here is the whois for feldent.com


It might be worth contacting them to ask whether they had problems as well.  Since they are using the same server, a datacenter-related problem couldn't possibly affect one site without the other.

I am going to make one for myself already have a lot of the code done for managing many wallets, just need a front end.

If they can't prove it's a datacenter problem and they come out and blame the datacenter instead of taking full responsibility for the outage then yes that's bit shady and I have to assume they are not being honest about what happened.

you can search for applications. if you have money, then i suggest you to buy android phone and then you can download mycelium as your bitcoin wallet. i think its safe to use mycelium and many people have been recommended.

i am not agree to save almost all our money in market exchange, put it into USB wallet or cold storage i think its a good idea.

so do you tink poloniex also will be hacked like bitfinex ?

I would like to know that too, I was not happy with using some not update wallets, so far i have electum for both LTC and BTC, visualy they are the same but you must install both, I am happy with it and feel secure, backup sacred words at the paper for both coins

but you must google which coins they support, because they have different page for LTC and BTC, etc

Question to everyone is there Windows PC based multi wallet Application in existence that I can use to store my coins? 

I can agree however, when I worked for a software company and we could not prove it was not our fault even when it wasn't our response as it was our fault and we are working to prevent it from happening again.  If you can't be transparent with other people's money you take it on the chin and blame yourself.  The reason is it is very convenient for them to blame a 3rd party without proof.  Finally I asked if Poloniex has 3rd party auditor such as Deloitte that could independently verify their statement without compromising security.

This was their response...


I responded with...

So can I assume from your repeated response that you do not have a 3rd party auditor?


Finally as you know banks operate on security via obscurity and that does not work if fails every single time.  The evasive support shield has reduced my confidence in these guys.
Look I don't expect them to come out and say they are closing the doors because of a hack on the weekend and everyone to lose everything.   No that will take months if they have been hacked.  In the meantime if you rationalize away this huge incident you are doing yourself a disservice by not reducing your exposure by some percentage points on this exchange.

Just my 2 cents worth.

@DavinciJ15

I totally agree with you, but you never can be 99.9999% safe with exchanges, I too was burned by mtgox and had to take out crap alts out of cryptsy

But them not disclosing data center location is not a red flag, I too would not disclose location for security reasons

But then we what can we be sure of... outside audit yes, but still who guarantee they will not be hacked, this bitfinex has proved exchange still have not learned the mean of secure cold wallet storage!

@OP: thank you for the update. i appreciate that you ask polo and shared the information you received from them with us.

i hope that polo is telling the trues and nothing will happen with this exchange.

Using a 3rd party to validate could work but i do understand why they do not tell where the datacenter is located. It would most likely result in way too much hacker interest and massive amounts of trolling/manipulating ddos or other means of taking it down or slowing it to a crawl.

The lack of transparency and security via obscurity has got me concerned this was my last message from them.


I responded...

I have taken all of the security measures you suggested.  However I must follow mine regarding exchanges.   If I can not prove Poloniex's claims that the issue is datacenter related I must follow my security protocols for exchanges and assume that the issue was not a 3rd party problem.   I have already cancelled all my bid orders and planning to transfer the bitcoins and over this week reduce my exposure to your exchange by 50% or more.  If you have a 3rd party auditor such as Deloitte or any of the big 5 this would go a long way to ensuring that our money is safe.  If you do have an independent auditor I would like to contact them and review their report.


I will keep people posted here.  But it would be wise to reduce your exposure any way you can at this point.  There is a good chance nothing will happen however should another event occur that can not be proven as fact you will need to reduce your exposure to limited. Consider that Polo is the number 3 exchange they have a target on their backs as they have grown rapidly. 
Have they tightened up their security measures?
Have they added layers of protection methods?
Have created fake exchange servers for hackers to fall into?
Do they assume that the hack will come from internal staff?

We just don't know.

did poloniex get hack and losing the member fund? i think poloniex staff do not want to give their detail about datahosting, because its so dangerous to share info with someone that they don't know. did you get some unsual experience? can you share with other member so maybe other member can give alternative solution?

I have emailed the exchange and I asked them to name the datacenter hosting company they replied...



I responded asking them if other companies other than Poloniex have been affected and can they name them.  They responded right away...


I responded with this...

"ah uh, Is there any way you can prove that this was a datacenter problem without compromising security?  You do understand that because Bitfinex went thought the same issues before a sudden hack you can see why I want to make sure everything is on the up and up.  Finally if I am unsatisfied with your answers I must follow my own security protocols as they have kept me out losing money at MT Gox, Cryptsy, and Bitfinex thus far.  I really don't want to follow my security procedures because it's a lot of work but I must protect my money."

No response!

My security protocol goes like this lawsuit loss, funds lost once but no capital lost to users, or exchange outage, strike one. If anything like that happens again strike 2.  On strike 3 I must remove 50% or more of my assets, a 4th strike keep it to a bare minimum of assets at the exchange.  Finally strike 5 virtually nothing is left at the exchange beyond a few hundred dollars worth.

It sucks I have a lot of coins on the exchange but it looks like this is strike 3 for me, I must follow the rules to keep myself out of exchange risk.

I do not see anything usual in the past few days. That thread was from more than two months ago, too early.

you could even add in the order first Mtgox and then cryptsy... I forget one in australia. the problem is that I fear your logic isn't bad at all, even quite the contrary. What the hell is going on ?!?