Summary: Finblox, a crypto staking and yield generation platform, has imposed a $1,500 withdrawal limit, including a $500 daily withdrawal limit, and paused rewards in response to the uncertainty surrounding crypto hedge fund Three Arrows Capital, which made a $3.6 million investment with Finblox last year. Here is the update from the relatively new crypto investment ...
Finblox, a crypto staking and yield generation platform, has imposed a $1,500 withdrawal limit, including a $500 daily withdrawal limit, and paused rewards in response to the uncertainty surrounding crypto hedge fund Three Arrows Capital, which made a $3.6 million investment with Finblox last year.
Here is the update from the relatively new crypto investment platform via Twitter.
“This set of actions is a necessary move in such a highly volatile market and we believe should help us and our community to manage the effect,” the statement read.
This comes in response to a report on Wednesday that suggested Three Arrows Capital (3AC) could be facing possible insolvency issues after incurring at least $400 million in liquidations by undisclosed crypto lending firms.
Finblox, founded in 2022, is known for returning high yields to investors, such as 5% on Ether and Bitcoin, and up to 12% on popular stablecoins. By working with eight partners and protocols, including Three Arrows Capital, Finblox is able to spread the risk as evenly as possible. However, now that 3AC is under fire, Finblox finds it best to suspend and limit some of their services.
"Finblox will do everything in its power to protect users' funds and reinstate our services in full," the statement added.
One of Finblox competitors, Celsius, recently paused withdrawals, Swap and transfers between accounts citing “extreme market conditions.” They have yet to unpause those services nor announce an end date for the pause.
FatMan, a Twitter account and member of the Terra Research Forum, posted his advice in a tweet regarding the recent news from Finblox saying, “I would recommend withdrawing from similar services for at least one week. Reassess after.”
FatMan wasn’t the only account on Twitter to voice their concern with Finblox; Pentoshi Powell Jr., a self proclaimed meme account with over 500,000 followers, noted that Finblox is just one of the latest funds that were not safu and that more are surely to come. In this case, “safu,” is a term used to mean “safe.”
In addition, Fed Up Cassandra, also known off social media as Frances Cassandra Coppola, took to twitter to voice her opinion about Finblox, remaining extremely active after the initial tweet from Finblox. Here are some of the top tweets from Coppola.
She did point out in a follow up tweet, that Finblock should be Finblox.
Hopefully for investors, Finblox is able to resume their full list of services shortly, but given the current volatility in the market, it remains unknown.
Author: Tyler Irvin