CoinLoan – a company that offers crypto-backed loans and interest-earning accounts – said it will balance the flow of funds on its platform by lowering account withdrawal limits. The firm assured that the amendment is temporary as each user will be able to withdraw up to $5,000 in a rolling 24-hour period.
CoinLoan Moves Amid Market Pullback
Estonia-based cryptocurrency lending platform – CoinLoan – became the latest firm in the sector to announce some changes due to unfavorable market conditions. Its temporary measures include a reduction in the withdrawal limit.
The company said that postponing all withdrawals is not on the agenda as some customers have deposited their life savings on CoinLoan. The process will allow the platform to have stable operations in the future because sometimes “prevention is better than cure.”
The crypto lender also said that it has no exposure to distressed protocols such as Terra, Three Arrows Capital and Celsius. “The reason is simple – our strategy prevents risky activities that could put CoinLoaners’ funds at risk,” explained the entity.
The team also assured its users that their assets are safe. As one of the oldest CeFi platforms in the region, CoinLoan has seen many negative developments and is confident that its expertise will guide it through the current chaos:
“Since 2017, we have seen many adversities, but each of them has given CoinLoan strength and contributed to its growth. We understand how to handle difficulties, and we do well to prevent them as well. are equipped.”
Companies That Took a Big Punch
The ongoing crypto winter has caused significant damage to major digital asset exchanges such as Coinbase, Gemini and Bybit. Due to dwindling investor interest, they all had to lay off a portion of their workforce.
Singapore-based trading venue Wold and lending firm BlockFi were also affected. The former laid off 30% of its total personnel and suspended all transactions and withdrawals. Earlier today (July 5), cryptopotato said that Nexo is ready to take over the troubled entity.
BlockFi also had to do some redundancies among its employees. Additionally, the state of Iowa ordered him to pay an administrative fine of approximately $1 million for failing to register as a securities trading platform.
Amidst all these issues, FTX (an exchange led by Sam Bankman-Fried) demonstrated its intention to buy BlockFi. Interestingly, the offer was for only $25 million (taking into account the fact that the latest known private valuation of BlockFi reached $3 billion).
Later, Layden revealed similar plans as it aims to lead a $400 million fundraiser and provide a $50 million equity contribution that could give it a significant proportion of BlockFi.
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