Community backlashes Bittrex For Moving Huge Chuck of Cryptos Assets Without Prior Intimation

By | January 11, 2019

Bittrex is considered one of the safest exchange in the cryptocurrency industry and is pretty transparent about its operations. But the exchange failed to intimate the users and community this time as it moved nearly 400000 ETH and 130000 BTC without prior update signalling false whale movement.

Reorganizing and adding more cold storage lead to this movement

In the last 24 hours, Bittrex saw a big chunk of Ethereum being transferred. According to some news reports, the size was of the movement was close to ETH 800000 and around BTC 130000. While there was no official announcement of such a move a lot of community members and Bittrex users started contemplating why such a huge chunk of assets was moved. A Twitter account by name of Whale Alert, that captures the whale movement across the crypto industry reported these moves.

A few community members thought that it was a whale movement while others went into panic mode believing it was some kind of an attack. It took some hours for Bittrex to clarify that it was actually the exchange that moved this large chunk of assets in order to reorganize and make a further addition to its cold storage.

This silent movement from the exchange did not go well with the community members as they shared their displeasure with the exchange.

As the increment and reorganization of cold storage was a planned activity, the users, traders and community members expected Bittrex to have announced this prior to moving the funds. This miscommunication from the exchange created unnecessary panic amongst users.

While things have settled after the official tweet, the news behind it stands that Bittrex is expanding its cold storage which could be sighted as company’s expanding business. Cold storage is an important feature of Bittrex as it makes the exchange most secure cryptocurrency exchange in the market. In the system Bittrex uses, 80-90% of all currency is kept offline in cold storage and that they reason Bittrex hasn’t been hacked or lost any of its customer’s money.

While Bittrex has a clean record, a little more proactive communication is something that would be required from the exchange. Having said that, the addition of more cold storage is a good sign for Bittrex as the business seems to be growing.

Will Bittrex improve its communication department and be proactive after this incident? Do let us know your views on the same.

Community backlashes Bittrex For Moving Huge Chuck of Cryptos Without Prior Intimation
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Community backlashes Bittrex For Moving Huge Chuck of Cryptos Without Prior Intimation
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Bittrex is considered one of the safest exchanges in the cryptocurrency industry and is pretty transparent about its operations. But the exchange failed to intimate the users and community this time as it moved nearly ETH 400000 and BTC 130000 without prior intimation creating worries of a whale movement.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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