Luno / Ethereum issue 25th November.

Dolby

Dolby

Honorary Master
Joined
Jan 31, 2005
Messages
39,162
Reaction score
6,146
If there is anyone else here that may have an an issue, please let me know.

Basically, Luno claim that the final price of a purchase will always be shown before the actual transaction and a user needs to confirm acceptance with a PIN code.

During the morning of 25th November when making purchase, the price on of Ethereum on Luno increased by 50% due to (apparently) liquidity and volumes. The issue is that this was *not* displayed (software glitch?) and many people ended up losing thousands (I lost R7,000 at a click). I've found a number of people on MyBroadband with the same issue and just came across a Facebook post with even more people complaining they were not informed. Lunos stance is that each of us missed the price when confirming ....

If there is anyone with this issue, please PM or go direct to the Luno at www.facebook.com/LunoSouthAfrica/posts/2092566310971673


I'm hoping with more people complaining (and maybe MyBB interference?) they'll admit their software wasn't accurate
 
Last edited:
Sounds the same issue ... they truly believe that their app give you a final price. When I logged a ticket, they said 'sadly, you did agree' and I see they've said that to everyone that has lost money. I'm hoping we can get some momentum and get them to realise they're wrong with enough people
 
Dolby said:
Sounds the same issue ... they truly believe that their app give you a final price. When I logged a ticket, they said 'sadly, you did agree' and I see they've said that to everyone that has lost money. I'm hoping we can get some momentum and get them to realise they're wrong with enough people
Click to expand...
How would they filter out people making false claims?
 
saor said:
How would they filter out people making false claims?
Click to expand...

Well, it seems to be on a limited date and time. Everyone I've found is the 25 November between 8:00 and 10:00 (barring the guy below)
 
Dolby said:
Well, it seems to be on a limited date and time. Everyone I've found is the 25 November between 8:00 and 10:00 (barring the guy below)
Click to expand...
Sure, but if there's no record of the glitch, how would they verify the validity of each person's claim? Luno have no way of doing whether your claim is legitimate or not.

If there is a record of the glitch, well - they need to suck it up and reimburse people.
 
saor said:
.
Click to expand...

But they have record of the cost?

In my situation, I provide date/time/cost and even their support told me R11,000 seems high and have tried to investigate why I paid so much. Ethereum was trading at around R7,400.00 at the same time

eth.jpg
 
Last edited:
Dolby said:
But they have record of the cost?
Click to expand...
If they have a record of the transaction I think they should at least offer some compensation. I realize many exchanges hide behind their lack of regulation as an excuse to not have to act like other financial institutions but they can still choose to do the right thing. Granted that it's very clear the error and the amounts in question.

Really does suck, I can understand your frustration.
 
This is my main gripe.

Before a transaction, you enter how much you want to buy. It may state 2.91 - but after the transaction it could be 1.7 or 2.1 or 2.5 - thousands of Rand that appear seemingly like a lotto! Plus, seems odd to me that everyone was pretty much early 25 November

eth2.jpg
 
Then check the dates and times people are complaining. This guy got off easy at only R4,800 and 20% - I'm R7,000.00 and 50% transaction fee. Luno must have made a killing that morning - and then they just tell everyone that app was correct and they agreed (screenshots of support on the page)

I know a few guys on MyBB with the issue that haven't added to that thread ... they bought before 9am 25 November.

View attachment 482642
 
Dolby said:
This is my main gripe.

Before a transaction, you enter how much you want to buy. It may state 2.91 - but after the transaction it could be 1.7 or 2.1 or 2.5 - thousands of Rand that appear seemingly like a lotto! Plus, seems odd to me that everyone was pretty much early 25 November
Click to expand...
Is that a thing that happens all the time?

Also...save yourself the fees and buy on the exchange so you know exactly what you're getting in the future. Instant buy/sell is only really useful if you're in a rush and need it right now. Exchange is cheaper.
 
Add my voice to this.
Luno never even got back to me. At least you were politely told to F yourself. I got nix.

Also R7k in the hole. Swines.
 
You guys can prevent these instant purchase stuffups by using the actual exchange even if it might take a few clicks more.

The instant buy option is bound to be inaccurate in many ways and the stuffup would just be passed onto you.
 
saor said:
Is that a thing that happens all the time?

Also...save yourself the fees and buy on the exchange so you know exactly what you're getting in the future. Instant buy/sell is only really useful if you're in a rush and need it right now. Exchange is cheaper.
Click to expand...


I'd only done 2 x Ethereum transactions before - both find. But I traded Bitcoin fairly often about 2 years ago with no hitch at all. Both instant buy/sell and exchange. I thought I'd dabble now and as they don't have an exchange, I went instant. But the screen shows one thing and then thumb suck a price (that day, anyway).
 
DominionZA said:
Add my voice to this.
Luno never even got back to me. At least you were politely told to F yourself. I got nix.

Also R7k in the hole. Swines.
Click to expand...

Nah - they just ignored me.

If you check the Facebook, they ignored all those people that were caught as well. I want MyBB to get involved and at least with a huge IT forum, they may take us seriously.

What time did you transact exactly? I was 8.22am and I know another guy caught was 8.33 or so.
 
John Tempus said:
You guys can prevent these instant purchase stuffups by using the actual exchange even if it might take a few clicks more.

The instant buy option is bound to be inaccurate in many ways and the stuffup would just be passed onto you.
Click to expand...

I'll never use Luno again - I've learnt.

When the glitch / bug / issue happened, I thought I being a reputable place, they'd refund. But they're ignoring and dodging the issue for everyone. It'd be interesting to see how many tickets they have about the same thing.
 
Dolby said:
Nah - they just ignored me.

If you check the Facebook, they ignored all those people that were caught as well. I want MyBB to get involved and at least with a huge IT forum, they may take us seriously.

What time did you transact exactly? I was 8.22am and I know another guy caught was 8.33 or so.
Click to expand...
Mine was 09H29. Confirmation was for 2.65 ETH and only got 1.77.
 
They've got so many queries on that date, they've got a generic support reply sent to those with the same query saying 'Sorry, you saw the price and you agreed to pay it'
 
Hi guys,

I can understand that some of you are upset about this. We've reached out to customers who have queried this from our end.

We've done an extensive investigation from our end and have some outcomes that I'd like to communicate with everyone. For context, it's important to know that every buy or sell is done with another party, not Luno directly. That means in order for a buy or sell order to go through an opposing party is needed. If you're buying, a seller is needed to meet you at that price and visa versa.

The screenshots posted here show an approximation of the price, not the final effective rate, hence the ~(tilde).
This is displayed on the first two screens. The approximate value is pulled from the average price, that's calculated by the average between spread, it doesn't guarantee that it will be the final price nor if there is sufficient liquidity available. This goes for the Exchange too, the average price displayed might have a total liquidity value or 0.006 ETH between a buy and sell order, there are no guarantees that you can buy/ sell at that price.

After going through these steps and inputting how much Ethereum you want to buy, you're presented with the final review of the transaction. This is the same screen where you're prompted to enter your PIN.

Let's assume we're buying ETH with ZAR, the information will be displayed as follows:

Convert ZAR 170
into ETH 0.24
at R6900

Enter your 4-digit PIN
Click to expand...

This confirmation is valid for 60 seconds and has grabbed an effective rate (displayed here as R6900 as an example). The effective rate may, and sometimes does, differ to the approximations before hand. This is especially true during volatile markets as orders are executing quickly. It's also exaggerated should there be a particularly high spread.

A thorough review of transactions on 25 November 2017 shows that the effective rate was displayed to everyone. If you do want to make more advanced orders or specify a price I'd urge you to place these orders on the Exchange.
 
Lunomoney said:
Hi guys,

I can understand that some of you are upset about this. We've reached out to customers who have queried this from our end.

We've done an extensive investigation from our end and have some outcomes that I'd like to communicate with everyone. For context, it's important to know that every buy or sell is done with another party, not Luno directly. That means in order for a buy or sell order to go through an opposing party is needed. If you're buying, a seller is needed to meet you at that price and visa versa.

The screenshots posted here show an approximation of the price, not the final effective rate, hence the ~(tilde).
This is displayed on the first two screens. The approximate value is pulled from the average price, that's calculated by the average between spread, it doesn't guarantee that it will be the final price nor if there is sufficient liquidity available. This goes for the Exchange too, the average price displayed might have a total liquidity value or 0.006 ETH between a buy and sell order, there are no guarantees that you can buy/ sell at that price.

After going through these steps and inputting how much Ethereum you want to buy, you're presented with the final review of the transaction. This is the same screen where you're prompted to enter your PIN.

Let's assume we're buying ETH with ZAR, the information will be displayed as follows:



This confirmation is valid for 60 seconds and has grabbed an effective rate (displayed here as R6900 as an example). The effective rate may, and sometimes does, differ to the approximations before hand. This is especially true during volatile markets as orders are executing quickly. It's also exaggerated should there be a particularly high spread.

A thorough review of transactions on 25 November 2017 shows that the effective rate was displayed to everyone. If you do want to make more advanced orders or specify a price I'd urge you to place these orders on the Exchange.
Click to expand...
Ye, it was shown to me. 2.65. I still confirmed this by doing the transaction again after my R7k was stolen and stopped short of PIN. 2.65.

What I actually got was 1.77. That is a massive difference.

But you reckon I should just suck this up and move on? Think not...
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X