CoinLoan – a company that offers crypto-backed loans and interest-earning accounts – said it will balance the flow of funds on its platform by reducing the account withdrawal limits. The firm assured that the amendment is temporary as each user would be able to withdraw up to $5,000 per 24-hour rolling period.
CoinLoan’s Steps Amidst the Market Pullback
The Estonia-based cryptocurrency lending platform – CoinLoan – became the latest firm in the field to announce some changes due to the adverse market conditions. Its temporary measures include the reduction of withdrawal limits.
The company said a suspension of all withdrawals is not on the agenda since some customers have stored their life savings on CoinLoan. The procedure will allow the platform to conduct stable operations in the future as sometimes “prevention is better than cure.”
The crypto lender also stated that it has no exposure to distressed protocols such as Terra, Three Arrows Capital, and Celsius. “The reason is simple – our strategy bars risky activities that could endanger CoinLoaners’ funds,” the entity explained.
The team also assured its users that their assets were safe. Being one of the oldest CeFi platforms in the field, CoinLoan has seen numerous negative events and is confident that its expertise will guide it through the current chaos:
“Since 2017, we have seen multiple adverse situations, but each of them gave CoinLoan strength and contributed to its growth. We understand how to handle difficulties, and we are also well-equipped to prevent them.”
Companies That Took a Major Punch
The ongoing crypto winter has significantly harmed leading digital asset exchanges like Coinbase, Gemini, and Bybit. Because of the diminishing investor interest, all those had to lay off a chunk of their employees.
The Singapore-based trading venue Vauld and the lending firm BlockFi were also affected. The former dismissed 30% of its total personnel and suspended all transactions and withdrawals. Earlier today (July 5), CryptoPotato reported that Nexo is willing to acquire the troubled entity.
BlockFi also had to make some redundancies among its staff. Additionally, the State of Iowa ordered it to pay an administrative fine of nearly $1 million for failing to register as a securities trading platform.
Amidst all these issues, FTX (an exchange spearheaded by Sam Bankman-Fried) displayed its intentions to purchase BlockFi. Interestingly, the offer was for a mere $25 million (considering the fact that BlockFi’s latest known private valuation hit $3 billion).
Later on, Ledn revealed similar plans as it aims to lead a $400 million fundraiser and provide a $50 million equity contribution that could grant it a significant proportion of BlockFi.