I came across a blog and just saw this post and I felt like it’s worth talking about since I have been making a post about crypto platforms halting withdrawals.
In the spirit of crypto platforms halting withdrawals, deposits and trading of crypto, some companies are giving signs of joining these leagues of crypto companies. This is because, some companies started off just like that and ended up halting withdrawals just like the rest. It all started with Celsius, making that public statement and holding people’s assets for more than 10 days now. Then the 3AC crypto hedge funds, then the voyager, then the vauld and now its seems like coinloan is next in line. They announced that they are slashing their withdrawal limit by 90%.
That’s a lot of reduction, $500,000 withdrawal limit has been reduced to $5,000. CoinLoan, I am assuming is a lending platform, also claimed that this reduction is temporary? Really? They also claimed that this decision was not based on market instability its just based on the aftermath of Celsius, 3AC and other typo lending platform’s decision of halting withdrawals. This has created a mass panic feeling that has caused a lot of people to increase their withdrawals from their platforms.
It’s obvious that people are very scared of these platforms now and they don’t think their asset is safe anymore, so it’s going to affect a lot of crypto platforms. This withdrawal limit was just reduce because of the rate at which people are withdrawing, it’s not like they are affected by LUNA/UST, and other crypto controversies. While these statements are made by CoinLoan to create some sort of understanding to their customers, I feel this is not enough, as some people will still panic and withdraw out of fear. They made a statement through their blog I hope investors read the blog before making their decisions.
3AC has filled for bankruptcy, more panic has been spread, crypto lending platforms have halted withdrawals, some have reduced withdrawal limits causing much more panic, coupled with the fact that we are in a bear market, what a wonderful tough time to be in the crypto space. We are having quite an experience and this will be a good experience to look back and laugh at in the next Bull run because, it’s been one hell of a ride.