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Tuesday, December 6, 2022

CoinList addresses ‘FUD’ on withdrawals, cites technical issues for delays

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Cryptocurrency trade and Initial Coin Offering (ICO) platform CoinListing took to Twitter to handle “FUD” after a blogger tweeted that customers reported being unable to withdraw funds for over every week, sparking fears the corporate was having liquidity issues or w bancrupt.

“There is a lot of FUD going around that we would like to address head-on,” CoinListing stated in a Nov. 24 Twitter thread that said the trade is “not insolvent, illiquid, or near bankruptcy.” It stated nevertheless that its deposits and withdrawals are affected by “technical issues.”

Crypto-focused blogger Colin Wu had earlier tweeted to his 245,000 followers that “some community members” utilizing CoinListing have been unable to withdraw for over every week because of upkeep.

CoinListing has a $35 million creditor claim with bankrupt crypto hedge fund Three Arrows Capital which Wu stated in his tweet was a “loss,” that probably triggered issues the corporate was bancrupt or illiquid.

Looking to dampen fears which have seen financial institution runs on different platforms, CoinListing defined that an improve to its inner techniques and a migration of pockets addresses that entails “multiple custodians” is being undertaken.

The firm cited unexplained “custodian issues” as the explanation a number of cryptocurrencies “are taking longer than anticipated to migrate” with one in all its unnamed custodian companions affected by an “outage […] unrelated to the migration” on Nov. 23 which impacted tokens on the platform.

Its standing page exhibits “degraded performance” for withdrawals, with 4 cryptocurrencies unavailable for withdrawal since Nov. 15, and one experiencing delayed deposits since Nov. 16.

“Once again, this is purely a technical issue, not a liquidity crunch,” CoinListing stated. It claimed to carry “all user assets dollar for dollar” and famous it plans to publish its proof of reserves.

Cointelegraph has contacted CoinListing for extra data however didn’t instantly obtain a response.

Related: FTX illustrated why banks need to take over cryptocurrency

CoinListing claimed on Nov. 14 that it had no publicity to the now-bankrupt FTX trade, however customers are more and more nervous about centralized platforms and have rushed to make sure protected custody of their belongings as evidenced by the surge in sales reported in mid-November by {hardware} pockets suppliers Trezor and Ledger.

Around the identical time, outflows of Bitcoin (BTC) and stablecoins from exchanges hit historic highs and a corresponding uptick in activity was seen on decentralized exchanges.