HitBTC a Real Exchange or Not?
HitBTC will add any token or coin to their exchange
They are already sketchy, but what if I told you that they weren't trading real currency?
Here is how HitBTC is trading Fake currency:
HitBTC has disabled STEEM and SBD transfers in and out of their HitBTC wallet for 6 months. We can conjecture many theories why, but the standing fact is that the wallet that holds the currency has been abandoned. This has created an island of STEEM and SBD that exists on HitBTC, however, the islanded supply is likely a Fake supply.
Even though the wallets are disabled for transfers, both STEEM and SBD can trade with other currencies within the exchange.
How can they do this?
Exchanges choose to store cryptocurrency like STEEM from a single wallet to transfer in and out of the exchange (HitBTC has abandoned this STEEM/SBD wallet). Transfers go into this wallet with a memo attached so the exchange keeps track of how much each person has. Exchanges create a virtual system of keeping track of the amounts of virtual currency that is being traded. Since HitBTC has neglected the main wallet for so many months, then this invalidates the STEEM and SBD that they are trading with. Anyone can go look at the HitBTC STEEM/SBD wallet and see that no currency is moving anywhere.
So here is one reason to stay away from HitBTC.
The STEEM and SBD that HitBTC has in their wallet came from people like us that moved that currency to the HitBTC exchange to trade with other currencies. The exchange has since abandoned that central wallet that these people's STEEM and SBD is actually stored in. HitBTC could have very well lost the keys to the wallet and all that money is gone.
So here is another reason to stay away from HitBTC.
HitBTC continues to trade STEEM and SBD against Bitcoin. Since they have long since abandoned the wallet that actually has the STEEM and SBD in it, the question becomes; what is HitBTC trading? It is definitely not STEEM and SBD. When HitBTC trades fake currency against BTC, then doesn't that also invalidates BTC? If HitBTC is not trading real currencies, then are they even a real Exchange?
Poloniex also has disabled their STEEM/SBD wallet about the same time.
What are your thoughts?
Please remember to VOTE and ReSteem
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Hello @socky Hit BTC is doing wrong, if your information is correct then Hit BTC is absolutely wrong. I think Binance is the best exchange for trading.
Binance has stopped their main STEEM wallet for 5 days now. Let's pray that Binance doesn't do what HitBTC has done.
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Nice informative blog
That is NOT cool! Why can't people just be honest? Things like this drive me crazy!
Resteemed!
Definitely not cool. There is an enormous amount of STEEM and SBD stuck or lost forever by both HitBTC or Poloniex.
Someday, hopefully, they will have justice served.
I suspect it will come when Steemit user base grows to hundreds of millions of cryptocurrency users and they realize that Poloniex and HitBTC has been screwing them the whole time.
Poloniex investors (Goldman Sachs) will be in for a rude awakening when their customer base turns on them.
Kind of scary.... I'm hoping this is not Binances path......???
Very scary. I hope Binance is a legitimate exchange. So far it is not looking good.
Wow, i don't even want to go down that path. I trade on Binance all the time. I was thinking this, but was afraid to voice it.
interesting
Hitbtc is very sketchy. It traded bitconnect xoin, has a ghetto UI and hosts thousands of coins. That and the fees and large fees to take coins off the platform. Avoid!
I avoid them.
Never liked HitBTC, which is mostly referred also to "$"HitBTC from many traders. I traded their once, but try to keep avoiding them since they are a lot better exchanges out there without any big problems.
They definitely have a bad Reputation. They would need to clean up their act if they want to operate in the future. Certified and sanctioned exchanges is going to be the way for the future. I don't see them as getting though any kind of audit when they are doing this.
I don’t use hitbtc for steem trading but I do use it to trade many other coins, This got me nervous and thinking
Well from the information you have just shared clearly shows that their is something wrong in this exchange and we should definitely stay away from these exchanges...
A huge clue would have been when SBD peaked at $140 on their exchange while everywhere else SBD was trading for $1.60. I'm surprised that didn't catch the eyes of regulators. I guess that no one is paying attention. The poor suckers that were trading on HitBTC and actually spent anything over $1.60.