Poloniex Exchange Will Upgrade XRP Wallets Monday, Limiting Activities

U.S.-based crypto exchange Poloniex took to Twitter today to announce the upgrade of its XRP wallets, which will result in withdrawals and deposits being suspended for several hours.

What will change?

On Sept. 5, the crypto exchange took to Twitter to explain that it will upgrade its XRP wallets to further enhance the user experience. Once the upgrade is implemented the base reserve deposit requirement of 20 XRP to create a new address will no longer be needed. In addition, deposit confirmations have been reduced from 12 to 2, which will reduce deposit times from 20 minutes to about 15 seconds. 

Poloniex will reimburse users affected by flash crash losses

On Aug. 13, Cointelegraph reported that Poloniex announced a scheme to reimburse users affected by a flash crash in May, which led to total losses of around 1,800 Bitcoin (BTC). The cryptocurrency exchange pledged to repay daily trading fees (in BTC) to impacted lenders until their losses were fully recovered.

Some users were displeased with how Poloniex generalized the loss, with some users claiming the leading cryptocurrency exchange stole their funds because they didn’t have active margin loans on the day of the crash. Cointelegraph reached out to affected lenders on Reddit for their views, to which Reddit user geopo321 responded:

"If Poloniex were operating in any regulated financial space, they would not be allowed to get away with this. They are simply taking advantage of the fact that there are no regulations or standards for them to abide by set by the industry. Instead of keeping payback as a high priority, they have pretty much deemed it as the lowest priority and taken the minimum amount of steps to try and appease affected parties."

Please note, there is no confirmation if the respondent was indeed affected.