Statement from ZcashCo on Poloniex order error (January 2018)

On 17 January, 2018 a peculiar sell order on Poloniex for the ZEC<->BTC trading pair was noted on Twitter:


Source: https://twitter.com/anondran/status/953703979640176640

Also that day, a similarly peculiar sell order was created for the LTC<->BTC trading pair and noted by the same Twitter account:


Source: https://twitter.com/anondran/status/953704616025190400

At the time of this post, the total ZEC in circulation is 3,084,994 so therefore the 3.9M+ sell order is inaccurate.


Source: https://coinmarketcap.com/currencies/zcash/

This issue appears to be limited to Poloniex and we’ve detected no problems on the Zcash blockchain. That said, we’re monitoring the situation and we’ve reached out to Poloniex to see if we can help.

We’ll update this post with a link to Poloniex’s statement when they make one.

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Update: https://twitter.com/MickD/status/954066133275041792

“It was isolated to Poloniex and not related to the Zcash (or any other) blockchain.”

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Poloniex with Zcash wallet issues??? That is a first. :sunny:

I hope they reach out to you guys this time to resolve their issues compared to how, to my knowledge, they never have before.

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good communication. the error seems to clearly lie outside of Z cash:slightly_smiling_face:

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Hello Zcash team and Zoko. This is 100 % due to the fact that Poloniex allows margin. I often see price manipulation through order sizes larger than the entire order book on bitfinex because of margin, though I never have seen one this stupid, and obvious in its attempt to manipulate price. Poloniex obviously does not have margin controls in place, so if someone has 150 000 BTC equivalent in cash or other crypto they can pledge it as collateral and initiate a short position up to 2.5 x in leverage. This is classic market manipulation by the biggest manipulators in the crypto game. Poloniex should find out who that rich list account is that is spoofing the market with sell orders larger than the entire outstanding supply of a coin and restrict this type of activity. A 325 000 BTC sell order on LTC, that is worth $3.575 billion USD at BTC $11 000 price. This is impossible and would be larger than the entire 24 hr avg volume of LTC. I bet it is bitfinex or another market manipulator. There is evidence compiled that Bitfinex owns the rich list accounts on many exchanges and uses TETHER to manipulate prices. Bitfinex deposits TETHER in mass on Poloniex and they keep as little TETHER as possible at Bitfinex. They deposit the TETHER at other exchanges buy up raw coins no leverage and take out the raw physical. I am not saying 100 percent that is them though, I truly have no idea but it is easy to see that it is a rich list account attempting market manipulation, by suppressing prices during the crash of BTC on the 16 to 17th.

Dear Zoko, I would like to speak with you about implementing zsnarks on Etherum token(s) we are looking to create that will represent a 1:1 exchangeable value with a correlating asset. This asset is fungible, very liquid, and has mass adoption. I will discuss more in private what the assets are that we want to correlate the tokens to. I have a research paper I would like to share with you and my company has created an Erc20/223 compatible smart contract that takes in Ether and sends out tokens that represent the correlating asset. Our contract also handles the redemption of the token and returning of ETH at market price of the correlating asset as well as elimination of supply of the token. We use the ETH by either converting to cash or pledge in a swap for cash to buy the physical asset and hold it at a 1 for 1 reserve ratio. The smart contract is finished, tested and ready to deploy but I am only me and my small team we need a larger more experienced team to get advice and direction from. We are also exploring the use of Zcash protocol, and creating our platform using your blockchain and encryption tech that you built on from zerocoin. For now, we want to start with an ERC compatible solution because of penetration and potential faster adoption rate of our idea reaching an established audience. We want to do all of this as much as possible using our self funded sources from our crypto stash and we will wait on releasing an ICO, until we get generating solid reveune. Please reach out and email me at j.t@cryptogenesiscorp.com and I will promise to show you an idea that will disrupt the face of global finance. You are the perfect person to get involved in this project as it involves the transfer of one of the most tradeable assets in the world, which needs to be done encrypted but with some trace for legal and tax purposes. Worst case scenario we can just talk and you can maybe point me in the right direction.

Regards,
Jadd Tiemessen

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Probably the most important thing here. I have had nothing but issues with Poloniex but I still continue to use their service as I love their layout.

Polo always Problem with their (ZEC) Wallets,

they wallets seem a lot Vulnerability, thats way always maintenance every 2 days

Corect! I have 30 days now getting my zec to a ledger but… they ar stucked somewhere and no answer to support

@paige

Paige,If you are allowed to disclose what if any steps have been taken with Poloniex to help them resolve their persistent issues?
Though it is only one exchange, with the Zcash wallet being offline on Poloniex along with their generic message, it can leave a negative impact.

Damage is being done to ZCash with things like these. There has to be a clear answers from both sides because it is creating a lot of confusion and people stay away from trading / investing.

Hello, I’m not aware of any details beyond their statement that Zooko linked above. As far as I know, they’re working on these issues without our help. While we offered assistance, it seems they don’t need it.

Agreed that their generic message is not very confidence building but alas they post that for any wallet they have issues with.

:woman_shrugging:

Hello Paige can you please pass my message above with my email to Zoko. Greatly appreciated and thanks.

Regards,
Jadd Tiemessen

Hey Zooko, if you can please read my message explaining what I think this is due to, which I believe is unrestricted margin trading allowed by Poloniex.

Also if you don’t want to respond to what I asked in my message, let me know so I don’t get my hopes up, no hard feelings. Greatly appreciated and thanks for all your hard work Zcash team.

Regards,
Jadd Tiemessen

read your original post. where’s your white paper?

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who are you and why should I show you the white paper?? give me some
reasons because I have shown this thing to like only a few close friends
and a few outsiders who signed NDAs and it was only so they could review it
and tell me if it was something they would be interested in if I could get
the companies set up overseas and the right regulatory bodies to play ball.

I’d just like to remind you that you’re the one who initiated this conversation by publicly requesting zooko contact you. If you didn’t want to be publicly questioned, you would have opted to contact zooko privately.

Just a little piece of advice, perhaps you may want to think about how you respond to people when you’re looking for investment or support with regards to your big super secret project that requires an NDA. You wouldn’t want to come across as rude and or sarcastic with someone who could potentially help you reach your goals. I’d highly recommend you have someone else speak on your behalf if you can’t handle a simple question such as “Where’s your white paper”.

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Hello,

I only asked who you were and why I should show you the white paper. If you
would have said I represent on behalf of Zcash team or even would have
introduced yourself a bit I would have responded more amicably, which I
should have anyway, I apologize didn’t mean to offend. So I was never
saying you have to sign a NDA absolutely, I am a guy who likes to talk and
put stuff out there and see what works and I try not to think that everyone
is out to steal your ideas. Though I have had some problems with certain
bad actors in the past I have taken steps to always make sure my
Intellectual property is protected somewhat so that I don’t hand stuff to
unscrupulous individuals. I am willing to talk more and show things if this
is a legit approach and not just a lure.

The site is called tokenshares.io , I also own the exchange site
stellartoken.com , they are both functional just not launch live yet.
The white paper and the rest of the idea I will share but can you please
provide me some assurance and info on yourself, or if you represent Zooko
or Zcash team.

Regards,

Jadd Tiemessen
Cryptogenesis Corporation

uhhh, usually people have a white paper, and aren’t shy to show it. was only asking because i’m an investor that’s open to supporting projects that might grow the zcash network. good luck.

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Also I just want to add in it is not so much a white paper as it is a
technical/research paper. The purpose of the document is not to attract
tons of investment and do an ICO it is to explain the system and the
functionality of the product(smart contract). The entire last 8 months of
my life and over 35 k in programming cost to my now business partner has
got me to this point. I had to pay costs out so ppl can at least survive
and not feel like they are working for nothing. We understand though that
what we have created will make great riches fast once it is deployed so we
will eat cost right now just to see the idea grow organically.

ok so I had no Idea that this was going out to the public forums just by
responding via the email. Anyways Nekkidtruth I meant no ill I just want
someone to say more to me than show me your white paper. I am open to
discuss with anyone who is willing to be transparent, fair and honest.