IOUs - Cold wallet relationship (Poloniex, Kraken, Gatehub)

(I'm new to cryptocurrencies.)

Please answer the following questions seperately for Poloniex and Kraken if they behave differently.

1) Can I buy example given XRP on Poloniex or Kraken and send it from there to my cold wallet?

2) Are these XRP on Poloniex or Kraten IOUs?

3) If they are IOUs and I send the XRPs to my cold wallet, does it effect my money on my cold wallet if Poloniex or Kraken goes broke (do I loose my money in that scenario)?

4) Is there any difference between sending my XRPs from Kraken/Poloniex to my coldwallet and sending my XRPs from Gatehub to my coldwallet?

Ini

Posted 2017-06-22T01:36:21.520

Reputation: 45

Answers

XRP is the native, so yes you can send it anywhere. On Gatehub and Bitstamp they are not IOU's. Not sure about Pol or Kraken.

jmar42

Posted 2017-06-22T01:36:21.520

Reputation: 13

They're IOUs if they're in a GateHub "hosted" account. They're IOUs if they're in Bitstamp, Poloniex or Kraken accounts. The only exception is a GateHub "trading account", where you're using GateHub's web site as a tool to control an address with a private key that's not known to GateHub. A GateHub "trading account" is also accessible without using GateHub. – None – 2018-09-15T07:07:02.673

Most exchanges use an IOU method, but there is only a bankruptcy risk while you own XRP on Poloniex or Kraken. Once you send it to your cold wallet, it's 100% yours and has nothing to do with Poloniex or Kraken anymore. Same goes for Gatehub.

Nicolas Lopez

Posted 2017-06-22T01:36:21.520

Reputation: 366

The acronym "IOU" can be used in two slightly different contexts. A balance at Kraken or Poloniex is a non-transferable IOU issued just to you by Kraken or Poloniex. But on the XRP ledger, transferable IOUs exist; they can be issued by anyone and transferred from one party to another.

Answer to question 3: No. You are probably thinking of the transferable IOU functionality that exists in the XRP ledger, However, the XRP ledger's transferable IOU functionality is not used for XRPs - the ledger specifically disallows anyone from issuing IOUs with the name "XRP". (A typical use of the transferable IOU functionality is the USD IOUs issued by GateHub, which are good only while GateHub continues to exist.)

Answer to question 4: Sending from a GateHub "hosted" account is like sending from Poloniex or Kraken, but sending from a GateHub "trading account" is sending from another address that you own. If you have XRPs at a "GateHub trading" account, you can access them without using GateHub.

user58807

Posted 2017-06-22T01:36:21.520

Reputation: