Poloniex to be Offline on 17.12

The reason for the full exchange stop is engineering works
12 December 2018   512

Poloniex Cryptocurrency Exchange will conduct scheduled maintenance on December 17 at 14:00 UTC. Because of this, the site site will go offline for several hours, and all trading on it will be suspended.

As part of our efforts to improve your Poloniex experience, we’ll be conducting planned maintenance December 17th at 14:00 UTC. This will take several hours, and during that time the site will be offline and trading will be suspended.

Poloniex at Twitter

Representatives of the exchange also guaranteed the safety of all user tools for the maintenance period.

It is expected that the update will allow to upgrade Poloniex, in particular, to move to new data processing centers, which will increase reliability and uptime.

Actual progress information will appear in the exchange account on Twitter.

According to CoinMarketCap, Poloniex is ranked 46th in terms of daily trading volume - $ 21.7 million.

Poloniex Marginal Lenders Lost $14m Due to CLAM Crash

CLAM lost 77% of its price in just an hour, leading to this horrible consequences
07 June 2019   352

The American cryptocurrency exchange Poloniex reported that financed margin trading users lost 1800 BTC (about $ 14 million at the current exchange rate) due to a sharp drop in the CLAM rate and extremely low liquidity of this coin.

On May 26, a sudden, severe price crash in the CLAM market caused a number of margin loans to default, resulting in a roughly 1800 BTC loss in the Poloniex BTC margin lending pool for non-US customers. Today, we recognized the generalized loss across lenders in the BTC margin lending pool. As a result, the principal of all active BTC loans as of 14:00 UTC today has been reduced by 16.202%. This impacted 0.4% of Polo users.

Poloniex Team

According to the representatives of the exchange, on May 26, the so-called Flash crash of the CLAM (228th place by market capitalization) occurred, as a result of which the coin fell by 77% in less than an hour. 

Rate collapse caused a wave of liquidations designed to reduce losses and repay loans to lenders. Poloniex claims that 0.4% of the total number of users of the exchange suffered, and the volume of the marginal lending pool decreased by 16.202%.

CLAM Price Chart
CLAM Price Chart

First, the velocity of the crash and the lack of liquidity in the CLAM market made it impossible for all of the automatic liquidations of CLAM margin positions to process as they normally would in a liquid market. In addition, a significant amount of the total loan value was collateralized in CLAM, so both the borrowers’ positions and their collateral lost most of their value simultaneously. As a result, some borrowers were unable to repay their loans with the digital assets they held on Poloniex.

Poloniex Team

Also, the company said that as long as borrowers do not repay the specified cost, their accounts will be frozen. The very same stock exchange promised creditors to return their funds as soon as she manages to pay damages.

Lenders impacted will see the reduction in their accounts when they next log in.

Poloniex Team

To avoid such losses in the future, the exchange will remove the assets of BTS, CLAM, FCT and MAID from the marginal section. In addition, additional measures will be introduced to monitor risks when trading with borrowed funds, as well as measures to prevent strong price slippage and excessive concentration of marginal positions.