Friday, December 9, 2022

Poloniex: We Can’t Support Bitcoin Gold for Now

Poloniex: We Can’t Support Bitcoin Gold for Now

Popular digital asset exchange Poloniex this week released a press release on the newly-launched currency “Bitcoin Gold”. It published an announcement on October 24, 2017 titled “Notice About Bitcoin Gold”. The statement came after many inquiries on whether the company intended to support BTG. 

Also read: Hacker Exploit “DUHK” Puts Crypto Exchange Login Credentials At Risk

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The announcement indicated it’s still too early to promise support, as it is only possible once the software is released for proper analysis. The document stated, “we cannot commit to distribution nor can we pledge to support it.”

Safety Must Come First

According to Poloniex, the reason for the uncertainty is due to the security and stability of the software remaining unknown as of now. Additionally, it was unable to determine network conditions before BTG launched this week.

Additionally, the statement specified that cryptocurrency users must be confident blockchain coins “does not require dangerous and questionable activities in order to support it”. It added that whatever information is put out by the team behind the new coin is subject to review.

poloniex logoIt added, “safety of our users’ token is our chief concern”. Hence, Poloniex will decline the new fork for now and will only support it if it includes replay protection (that is, to reduce the chance of people accidentally or deliberately sending the same transaction on two chains).

Furthermore, it advised all clients to be careful of any token that requests a private key that commands value on another blockchain. Poloniex pointed out that such practice “is dangerous and unnecessary, even for an alt like BTG that seeks to distribute tokens using the state of an existing blockchain.”

Other crypto industry leaders such as Coinbase and Trezor expressed similar views. Trezor, the cryptocurrency hardware wallet manufacturer, will not provide BTG services at the moment. Trezor said “Bitcoin Gold’s codebase is, at the moment of the writing, incomplete. Most importantly, it lacks replay protection. For this reason, Trezor Wallet will not support Bitcoin Gold yet, as it would endanger your bitcoins.”

“Coinbase cannot support Bitcoin Gold because its developers have not made the code available to the public for review. This is a major risk.” added Coinbase.

What Is Bitcoin Gold?

A new hard fork occurred on the Bitcoin blockchain when the 491,406th block was mined, creating Bitcoin Gold. The fork occurred on October 24, 2017 with a stated intention to return the system back to its original decentralized sources.

Specifically, it is designed to be ASIC-resistant, once again allowing miners to use GPU rigs to mine “bitcoin”.

To date, there is now Bitcoin, Bitcoin Cash and now Bitcoin Gold. The first chain split made trading feasible in both Bitcoin and Bitcoin Cash. During the fork, users were asked to hold off trading to prevent loss of funds. The Bitcoin Gold split is similar, but so far BTG doesn’t have anywhere near the same level of community support.

What’s your opinion of the Bitcoin Gold project? Let’s hear your thoughts.

Images via Pixabay, Poloniex

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