Since last year, Poloniex Crypto Exchange has been disappointing many crypto investors and enthusiasts and it’s reputation looks to have all gone. Now, I learnt that Justin Sun owns Poloniex Exchange after he brought the exchange in part along with a group of Asian investors and this is what disappoints me because Justin Sun, founder of Tron Blockchain actually has a bad reputation.
Justin Sun’s Tron Whitepaper not Original, case of plagiarism
First one that comes to my mind, goes back a while, that time Tron’s price was doing well all thanks to the hype generated by Justin Tron sorry Justin Sun by his marketing/promotional tactics. Tron’s Justin Sun had a spat with Ethereum’s founder, Vitalik Buterin, the guy I respect because he pioneered blockchain with smart contact capabilities, when he was just a 19 year old teenager!! Justin Sun, what ever he was fighting on twitter mostly related to boosting the merits of his Tron Blockchain, actually had a whitepaper that had content cut,copy and pasted from Ethereum blockchain’s Whitepaper.
This was the time, I decided, I don’t want anything to do with Tron and Justin Sun.
Justin Sun has built a history to mistrust him and his projects
He did some savvy moves I heart of acquiring BitTorrent, but post that he made news for a lot of wrong reasons. He disappointed a lot of crypto enthusiasts who enjoy crypto gossip by his cancelling of the 20th anniversary charity lunch with Warren Buffet which he won with a bid amount of $4.57 million!! which he did again as his usual promotional gimmick for Tron .
Sun claimed he would educate one of the most successful investors in the World about crypto and the underlying blockchain technology behind it in this lunch.
I heard that he may have cancelled it, because he was wanted in China by authorities for some crimes related to money laundering, it was awful news. Post that, I did not follow Justin Sun related news, until I read 2 days back about Poloniex Crypto Exchange.
Control of Justin Sun on Poloniex Exchange not good for the exchange’s customers!!!
I have heard about this Poloniex Exchange , because I have been checking out FAQs in Steemit on how to withdraw Steem, and one way is mentioned that Steem can be transferred and traded in Poloniex Exchange and that’s about all I knew about that exchange. I have considered opening my account in that exchange, but it’s not needed because I learnt Steem can be withdrawn to Binance Exchange and traded, liquidated etc.
Now after the latest developments with Justin Sun controlling Poloniex I never want to use Poloniex Exchange , I can’t trust it.
Flash Crash incident due to margin trading in an Obscure coin
Right. Poloniex, is one of the older exchanges that was popular in 2014. However, it lost prominence during the 2018 bear market, losing it’s market share and getting into lower ranks in it’s liquidity metrics as well.
However, in 2019 May, Poloniex’s BTC margin trading pool lenders were angry about the exchange losing 1,800 BTC ($20M), due to a flash crash resulting out of margin trading
in a not well known or heard of coin called CLAM with BTC.
Such a coin that has low volumes should have not been allowed by any sensible exchange for margin trading!!!
As a result, BTC lenders of the Exchange accrued loses. Poloniex assured that all the lenders affected due to the crash would be compensated, BeaninCryto reports that the exchange had paid back 180BTC (around $2M) to those affected. Whatever the case, Poloniex Exchange lost it’s reputation with this incident.
I think a good exchange should also be concerned about it’s customers and at least list coins that represent blockchain projects which offer some valuable service making them invest worthy or if not that they should not have coins with low volume to be on margin trading at the very least!!!
Justin Sun using Poloniex Exchange to get buyers for Tron’s products
Then in October, it was talked that perhaps Justin Sun influenced and had his hand in the buy out of Poloniex Exchange even though he denied this saying that Poloniex is an independent Exchange and he was only a part of the Asian group that together brought the exchange in the interest of wanting it to grow.
However, soon enough, Poloniex Exchange listed Tron in it’s Exchange even promoting in tweets for people to buy Tron!!
So, Poloniex Exchange would most probably be used by Justin Sun to showcase Tron and the projects under it’s blockchain using TRC10 and TRC20 tokens. Sun’s got a platform to expand the reach of his products to audiences, I would definitely say audience beware!!
Last year Justin Sun’s owned Poloniex Exchange tried to attract customers by offering 0% trading fees, airdrop offers and offering high yields to deposits!!
Oh, my, my!!! As if we are not tired of economic uncertainties already, to be stressed being uncertain of our funds in this exchange that’s controlled by Justin Sun, not worth taking the risk.
Therefore, if Poloniex Exchange had bad reputation earlier, now with Justin Sun managing it, there is very less probability if any that it would get better.
Poloniex Exchange not for US folks out there
BTW, US customers don't need to worry about this because they are banned from using Poloniex Exchange and were told to withdraw their deposits soon or face high withdrawal fees and have their investment surrendered to Government.
Digibyte Founder’s criticism results in the coin’s delisting in Poloniex Exchange.
I thought Digibyte (DGB)’s founder Jared Tate highlighted the real picture of Tron, Justin Sun and the Poloniex Exchange (after Justin Sun takes its ownership) pretty well due to which DGB coin gets delisted by Poloniex Exchange.
Tate says, Tron is only hype, it’s all centralisation as it’s coins are all premined, but it’s promoted as a project believing in the value of decentralisation. He called Justin Sun a ‘sleazy premining con artist’, ‘crook’ and somewhere I feel Tate maybe right, of whatever I conjecture about Justin Sun. For these accusations, Digibyte (DGB) gets delisted from Poloniex Exchange.
Poloniex Exchange has now Dex Exchange capabilities acquiring TRXMarkets
I hear the saying that goes something like selling your soul to the devil when I think of Poloniex Exchange’s buy by Justin Sun, however, it benefits in paper as well. The exchange acquires TRXMarket, which is a decentralised exchange (dex) built on Tron Blockchain. Now TRXMarket is Poloni DEX and Poloniex Exchange’s users can avail decentralised trading services from the exchange’s webpage.