Dear SMART Community,
I suppose many of you know that for a few weeks now all our fellow SMART hodlers who have their assets on HitBTC are stuck. They cannot withdraw, deposit nor move their SMART coins, instead a message is displayed that the wallet is under maintenance. Contacting HitBTC didn’t do anything so far. It has been said that they have technical issues.
This post is not meant to be another complain about this issue.
By posting this I want to share my recent findings on HitBTC which left me seriously concerned about the exchange in general.
A few days ago I signed up with HitBTC for the first time to check it out because it offers a bunch of coins which are not listed on Cryptopia. (The SMART wallet was already frozen there at that time.)
I made a deposit, no issues with that. Then I made two trades and wanted to withdraw my coins from the exchange. Suddenly only error messages came up, I tried it for hours to withdraw. But it just showed “An error occurred, please try again later” or “Currency operations not available”. I wasn’t even able to transfer my coins between Trade and Main Account anymore. Without having your coins on the Main Account you can’t even initiate a withdrawal anymore.
This made me suspicious and I learnt that this happens to a bunch of HitBTC users lately. And the point is, that it looks like HitBTC users face such issues not accidentally but systematically.
If you take a look at the [HitBTC forum] it speaks for itself. It’s full of messages from people who can’t withdraw or have their coin wallets frozen completely. Same for the [CryptoCompare reviews], [/r/btc] and [BitcoinTalk].
Here you can see an overview of the coin wallets that are currently frozen on HitBTC, including SmartCash: Live overview of HitBTC wallet status
I need to add that the coin wallets I had issues with do show up as not affected. But according to the things I experienced and the reports of others I conclude that in fact every wallet on HitBTC can be locked.
This situation is a perfect example of why centralized exchanges are dangerous. I feel the obligation to especially warn unexperienced users to jump on exchanges like HitBTC. And I think as a cryptocoin community we shouldn’t endorse such places which could eventually lead our users to financial losses.
Therefore I would propose the following to whoever it may concern and invite you all to
- a) Cease any activity on suggesting to buy SmartCash on HitBTC (non-offensive method)
- b) Issue a temporarely warning on HitBTC via the official SmartCash channels (offensive method)
until we have a clear picture of what is really going on.
And finally and most importantly, I would suggest to
- c) Sign up SmartCash to the Komodo [BarterDEX], a decentralized open-source cryptocurrency exchange based on atomic-swap technology. This is directed at the SmartCash developers, please see: How get your coin listed on BarterDEX
To all the people who are faced with their coins stuck on HitBTC, I feel with you. Even if it seems absurd to you, make sure you submitted a support ticket, save screenshots, document your case somehow. It will eventually help.
I would also welcome any comments, questions and further suggestions. You can also contact me directly on Discord (nflaw) or via Twitter DM (@n_flaw).