Poloniex, owned by Justin Sun, has announced that it will waive trading fees for users who sign up for the “Poloniex Super” membership. Currently, this membership offers 30 days of commission-free “spot, margin, and futures trading.”
Poloniex has not yet announced the price of this membership after the 30-day period, but says that “once the trial period ends, you will be automatically enrolled in the basic Super plan by default.”
The product announcement led users to question how Poloniex makes money without fees. Sun quickly explained that “Poloniex doesn’t need to make any more profits because we have already made enough profits with Bitcoin.”$BTC) Purchased in 2012. ”
Poloniex was founded in 2014, so you couldn’t buy their products. $BTC Since this was in 2012, Sun is probably referring to $BTC he bought.
This statement that Poloniex can continue to operate based solely on these profits brings to the forefront concerns about how Poloniex has been operating. $BTC It is in its reserves.
In 2020, Poloniex offered new products, which at various times were described as follows:$BTC TRON” and “BTCTRON”.
This initial announcement described BTCTRON as a “wrapped variant.” $BTC It is a token that exists on the TRON blockchain. ”
Poloniex’s help center provides a contract address for this token: TN3W4H6rK2ce4vX9YnFQHwKENnHjoxb3m9.
Looking at this contract address, we can see that this token currently has a circulating supply of 17,545. $BTCworth approximately $1.3 billion.
Disturbingly, Poloniex’s so-called “reserve evidence” claims that Poloniex has a balance of just $11,090. $BTC Of these, 11,082 are “user balances.”
This is not enough to reserve something tokenized $BTC product.
Protos has repeatedly contacted Poloniex during previous reporting on this product; $BTC For this tokenized product.
We tried to contact Poloniex again. However, these addresses were not provided prior to publication.
Read more: FTX Real Estate says Justin Sun still owes millions of dollars
A growing concern about this product is how deeply it is integrated into another Sun-owned exchange. $ cooperative.
in $ cooperativethere are usually more of these mysterious BTCTRON products that offer no transparency than the real thing. $BTC.
As of the latest $ cooperative Snapshots dated March 1st, total of 21,362 $BTC above $ cooperative. Of these, BTCTRON accounted for 10,291.
1,212 more available $BTC This is the wrapped Bitcoin format recommended by Sun.
What this means, taken as a whole, is that Poloniex won’t reveal where its $1.3 billion is. $BTC You will find items that use this item as collateral.
However, despite that fact, $ cooperative While Sun argues that the soaring price of Bitcoin means Poloniex can afford to offer “fee-free” trading, which Sun intends to make a large part of its reserves.
Perhaps instead of making exaggerated claims about his worth; $BTCSun should instead work on solving the obvious problems. $BTC The exchange he owns is in short supply.
