Goran Radanovic
Crypto lender CoinLoan limits customer withdrawals by reducing the daily limit from $500,000 to $5,000 to avoid liquidity issues.
CoinLoan Withdrawal Limit
Estonian crypto lender CoinLoan has experienced a flood of customers rushing to withdraw their money. But CoinLoan doesn’t want to encounter operational interruptions by facing liquidity issues, so it has decided to reduce the withdrawal limit.
Customers can now withdraw only 1% of the previous limit after CoinLoan decided to slash the withdrawal limit from $500,000 to $5,000. The company stated that it was probably the only company not impacted by the Three Arrows Capital bankruptcy, DeFi protocol issues and Luna/UST controversy.
CoinLoan also added that the reason it weathered the storm is that its strategy bars risky activities to prevent endangering CoinLoaners’ funds. It went on to say that the limit change is a temporary measure to balance the flows of funds and is only a precaution.
The change to the total amount of daily withdrawals per account of $5,000 per 24-hour rolling period is effective from July 4.
Investors use crypto lending platforms to earn interest on Bitcoin by lending cryptocurrencies.
Other Lenders Pausing Withdrawals
CoinLoan isn’t the only crypto company to take drastic measures to ensure it gets through the crypto winter. Celsius Network announced on 12 June that it had frozen withdrawals and transfers between accounts. Voyager Digital announced on 1 July that it suspended all trading, deposits and withdrawals.
BlockFi was another crypto lender affected by the crypto market crash and had to lay off 20% of its staff and ask FTX, a cryptocurrency exchange, for a $250 million emergency revolving credit facility.
It’s not only crypto lenders that have suffered setbacks thanks to the tumbling prices of the major coins. Coinbase, a San Francisco cryptocurrency exchange, announced in mid-June that it planned to lay off 18% of its workforce, 1,100 employees. And they’re not the ones. One of the best altcoin exchanges, Crypto.com, announced plans to lay off 260 employees, 5% of its workforce. Gemini also planned to lay off 10% of its staff.
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This article was written for Business 2 Community by Goran Radanovic.
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