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RE: If You Are Still Using Poloniex Exchange Their New T&Cs Should Make You Think Again

in #poloniex7 years ago

I wouldn't use Bitfinex (BFX) either. As I've said in another post a while ago:


I'm sure they aren't the only exchanges doing these kinds of things, and I've heard of dodgy happenings at Poloniex as well.

The looming crisis, however, is that BFX has struggled with gaining any new banking connections.

In the absence of legacy banking support, they've been using Tether, another centralized coin, to finance and run their operations. The issuance of tether has been ballooning under their stewardship, so what is happening is inflation on "steroids".

By diluting Tether and redeeming them for fractional units of Bitcoin or other coins, they avoid banking difficulties, but at the same time fall prey to the temptation of inflating their Tether supply to service more accounts.

As this increases, the dilution of Tether will mirror that of other failed experiments, like the Zimbabwe Dollar and the Venezuelan Bolivar, which is extending its losses in a hyperinflationary spiral.

The final analysis is, BFX will become unable to function properly which will no doubt be blamed on a "hack" or they'll just go radio silent and abscond with the funds, Mt. Gox style.


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Thanks for the information on Bitfinex - I haven't really used them myself.

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