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Lender CoinLoan Cuts Withdrawals by 99%
Summary: CoinLoan, an Estonian Crypto lender, is shrinking its daily withdrawal limit by 99%, from $500,000 to $5,000. The decreased limit follows the increase in client withdrawals, most likely fearing a more significant market collapse. Rumors are spreading that the company is facing substantial liquidity issues, which is causing the new limit. The announcement, published Monday, ...
CoinLoan, an Estonian Crypto lender, is shrinking its daily withdrawal limit by 99%, from $500,000 to $5,000. The decreased limit follows the increase in client withdrawals, most likely fearing a more significant market collapse. Rumors are spreading that the company is facing substantial liquidity issues, which is causing the new limit.
The announcement, published Monday, stated that they are the only company unaffected by the collapse of Terra and Three Arrows Capital, although this doesn't mean they are unaffected by the bear market.
CoinLoan isn't the only crypto lender to take substantial measures to ensure survival through the crypto winter. Celsius announced on June 12th that they had frozen withdrawals and transfers between accounts, and Voyager Digital, on July 1st, announced that they suspended all trading, deposits, and withdrawals.
BlockFi was also affected by the crypto market crash and had to cut 20% of its staff and go to FTX for a $250 million emergency revolving credit facility.
CoinLoan, in the statement, added that it weathered the storm because its crypto investment strategy prevents "risky" activities from threatening CoinLoaner users' funds. It went on to say that the limit change is a "provisional" measure to balance the flows of funds and is only a precaution.
Author: Garrett Meifert
