Cryptocurrency exchange CoinList stated it is not near bankruptcy as it addressed the ongoing FUD. It added that it is not insolvent or illiquid and is just experiencing technical issues affecting deposits and withdrawals.
The platform dismissed the speculation on Twitter after users reported difficulties with fund withdrawals for over a week and stated the event was purely a technical issue, not a liquidity crunch.
CoinList’s Official Statement
CoinList, which likewise serves as the largest cryptocurrency platform for crowdfunding, revealed that it is upgrading its internal ledger systems and migrating wallet addresses involving numerous custodians. The move is expected to strengthen its product and service offering while maintaining compliance.
Without mentioning any names, CoinList further added that the hold-up in cryptocurrency withdrawals was due to maintenance conducted by one of its custody partners, which faced an outage.
“As with any big undertaking, there are bumps along the way. Custodian issues mean some crypto tokens are taking longer than anticipated to migrate (ROSE, CFG, FLOW, MINA). 1 of our custodians had an outage yesterday unrelated to the migration that impacted several crypto tokens on CoinList.”
It was Chinese cryptocurrency reporter Colin Wu who revealed earlier that “some community members” using CoinList were “unable to withdraw for over a week due to maintenance.” In the previous a few weeks, halting withdrawals have become an ominous sign of insolvency. Hence, the latest information was enough to instill fear between users of another potential collapse.
Cryptocurrency Businesses in Trouble
The focus in the cryptocurrency industry continues to be the FTX implosion, and community members are now speculating which other corporations could get swept away in the fallout. Several prominent corporations appear to be at the cusp of Chapter 11.
For one, the trading arm of cryptocurrency conglomerate Digital currency Group (DCG) – Genesis – halted withdrawals. The company, which was one of the largest and most sophisticated players in the world of cryptocurrency finance, is reportedly facing insolvency due to holding a significant chunk of loans owed by collapsed corporations – FTX and Three Arrows Capital (3AC) (3AC).
Cryptocurrency lending and trading platform BlockFi was yet another casualty that paused customer withdrawals earlier this month due to significant exposure to FTX. Because of the fallout, the platform was reported to be exploring bankruptcy.
The post CoinList Breaks Silence, Assures Users it Is Not Near Bankruptcy appeared 1st on CryptoPotato.
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