CoinLoan Decreases Withdrawal Limit By 99%July 5, 2022 2:54 pm
It seems that CoinLoan has also joined the long list of crypto companies that have been affected by the recent crypto bear market.
The company recently just announced that it will be decreasing its daily withdrawal limit from $500k to $5k which caused many to be concern about the company’s financial condition.
CoinLoan still insists that this decision was not made because of the market conditions, but because the demand for withdrawals has skyrocketed recently.
After all, this does make sense given the recent news of Celsius Network pausing all withdrawals and preventing users from accessing their digital assets on the platform.
Whether or not this is just an excuse from CoinLoan is something that many are still trying to figure out.
CoinLoan announced yesterday that their withdrawal limit had been lowered to $5,000 every 24 hours:https://t.co/yvVkVdeNeS
— Brady Dale (@BradyDale) July 5, 2022
The crypto lending and trading platform announced today that it was introducing a new daily withdrawal limit of $5,000 per user, whereas the previous limit had been set at $500,000 a day. CoinLoan said the measures would be temporary, but effective immediately.
While CoinLoan boasted of being “probably the only company unaffected” by recent stablecoin collapses, hedge fund wipeouts, or liquidity issues on major protocols, it claimed the “turmoil” caused by crypto companies that were impacted has now led to a “spike in withdrawals of assets from CoinLoan.”
The new withdrawal limit was called a “precaution” by the company to ensure a balanced flow of funds and avoid “liquidity-related interruptions.”
It claimed the current level of liquidity was sufficient to meet all customer needs, though it acknowledged that halting all withdrawals would have been “more convenient” from a business perspective.
CoinLoan is considered one of the oldest platforms in the crypto space as it was founded five years ago with a focus on providing assets that could provide high annual yields.
For example, some of the stable coins that the company offers is providing an annual yield of over 12% which certainly helps investors keep up with inflation.
With that being said, many assets that have provided high yields often come with associated risks where the value of the asset could decrease significantly while holding it.
As a result, it is critical that investors do their own research before allocating capital to a coin that promises high yield rates.
CoinLoan is one of the other big players in this place in addition to Celsius, but this recent change has shaken up the confidence of many of the platform’s users.
CoinLoan crypto lending platform reduces account withdrawal limit
— web3 is going just great (@web3isgreat) July 4, 2022
CoinLoan has recently joined a growing list of cryptocurrency companies that have restricted or frozen customer withdrawals. The cryptocurrency industry has been shaken by several failures, including those of the supposed stablecoin TerraUSD.
The latest sign of stress came from Vauld after it announced on Monday that it will cease withdrawals and trading while seeking new investors.
On 12 June, Celsius stopped accepting withdrawals, exchanges, and transfers. It is currently exploring ways to become solvent again.
Today, the company announced that it is “taking significant steps to maintain, defend, and explore possibilities” about its assets.
Looking at the industry as a whole, there is quite a chance that CoinLoan will not be the last one that starts to restrict its users.
Yet another #crypto lender implementing restrictions.
This time one called Coinloan which reduced daily withdrawals from 500k to 5k. https://t.co/f5OTUA9kLb
— Lark Davis (@TheCryptoLark) July 4, 2022
Join the conversation!
We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.