CoinLoan Reduces Withdrawal limits But Assures Customers of Safety
- With this development, CoinLoan users are now restricted to withdrawing a maximum of $5,000 per day.
As a measure geared towards balancing the flow of funds and averting liquidity crisis, a popular crypto lender, CoinLoan has now reduced withdrawal limits on its network. The crypto announced the development in a blog post relayed via its official handle. With this development, CoinLoan users are now restricted to withdrawing a maximum of $5,000 per day.
Notably, CoinLoan hinted that the reduction in the withdrawing limit is not permanent and commenced on June 4. According to the crypto-oriented loan firm, the decision remains a precautionary measure in the wake of the prevailing market downturns.
According to CoinLoan, this precaution tends to help stabilize its future activities. The Estonia-based platform further said that it is not considering halting all withdrawals, stressing that the life savings of some clients dwell on CoinLoan.
The lending firm reflected on the liquidity crises that have ravaged its contemporaries in the past few months. Recall that lending enterprises, including 3AC, are currently enduring liquidity complications in the wake of the prevailing crypto winter.
However, CoinLoan boasted that it is not facing similar challenges owing to its proactive mechanism to safeguard customers’ investments. The crypto lending entity issued assurances to customers, stressing that their investment remains safe and secure.
More so, CoinLoan in the post recalled all its complicated conditions since 2017, hinting that “each of them gave strength and contributed to its growth”. The popular crypto lender insisted that it is very proficient in unraveling complications.
CoinLoan Follows a similar Route to other Crypto lenders
Worth noting, that the prevailing downturn in the crypto market has victimized numerous crypto lending firms, virtual exchanges, and other crypto startups. As of today, Coinbase, Gemini, Bybit, BlockFi, Vauld, and a host of others are already overwhelmed by these market complications. This devastating development compelled many of these exchanges to lay off their employees.
Vauld, a popular crypto trading firm, for instance recently sacked about 30 percent of its entire workforce. The trading platform also halted all its withdrawal, trading, and deposit operations, citing financial issues.
Darshan Bathija, the CEO of the Singapore-based firm lamented the current situation, stressing that Vauld intends to engage potential investors in recovering from the crisis.
Now, a London-based crypto lending platform, Nexo is making moves to purchase the dying Vauld. Similarly, BlockFi also sacked 20 percent of its personnel in the wake of the bear market.
Just like Nexo, FTX, a crypto derivatives exchange, showcased an interest in buying BlockFi. Although the challenged crypto lending firm is valued at $3 billion, FTX already had an initial deal to buy it with just $240 million. The derivatives exchange also offered a $400M credit facility to help BlockFi unravel its prevailing issues.
Subsequent reports later reveal the plan by popular virtual asset savings, and credit platform, Ledn to mastermind a $400 million fundraising round and a $50 million equity to BlockFi