Crypto Mining Pool Provider Poolin Suspends Withdrawals, Citing Liquidity Problems
Nicholas Otieno Sep 06, 2022 06:55
Poolin assured its customers that funds are safe and promised to fix the issue amid a bearish market.
Poolin, a cryptocurrency mining pool provider headquartered in Beijing, China, announced Monday that it had suspended withdrawals from its crypto wallet service, which signals serious trouble within the firm.
Established in 2017, Poolin offers a multi-cryptocurrency mining pool, custodial wallet, block explorer and transaction accelerator, which enable users to invest in digital assets like Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and ZCash with ease.
While Poolin's mining pools continue operating normally, the Poolin Wallet announced to its users that it paused all withdrawals, flash trades, and internal transfers within Poolin systems from 10 a.m. EDT on September 5 as part of efforts to preserve assets and stabilize liquidity.
"This imperative serves our goal of preserving assets, stabilizing liquidity and operations amid the dull crypto market. Meanwhile, we continue to explore strategic alternatives with various parties," the firm said.
The company went further and stated that all assets in PoolinWallet are safe and will provide more details and solutions within a week.
Poolin Wallet said it is "currently facing some liquidity problems due to recent increasing demands on withdrawals."
On Sunday, Kevin Pan, the company's CEO and founder said that Poolin is experiencing liquidity issues but assured customers that assets are safe. Pan's statement echoed that the firm would soon come up with a way to fix the issues. As per Pan's post, that plan might include debt.
In a separate announcement on Monday, Poolin said that it is providing its users with zero transaction fees for Bitcoin and Ethereum mining from September 8 through to December 7, and for 12 months for customers with more than 1 BTC or 5 ETH in their pool balance or in Pool Account.
Terror in Crypto Markets
Poolin has become the latest crypto firm facing liquidity issues. Suspending withdrawals has become a source of fear this year. The issue signals deep trouble at companies that have tried to create a modern version of banking through digital assets.
Following the crash of the stablecoin terraUSD (UST) and the collapse of crypto hedge fund Three Arrows Capital, several liquidity-strapped crypto lending firms found that they could no longer meet customer demands.
Three months ago, lenders including Celsius Network, Voyager Digital, Babel Finance, CoinFLEX, Vauld, and Zipmex halted withdrawals and transfers. Others like Finblox and CoinLoan allowed withdrawals to continue but at a reduced limit.
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