CoinLoan Decreases Its Withdrawal Limit by 99%

CoinLoan just set a new daily withdrawal limit of $5,000 for its customers, a 99% decrease from its previous limit. The company claimed it was “unaffected” by the recent market turmoil but was implementing the change due to a spike in fund withdrawals.

CoinLoan takes “precautions”

The crypto lending and trading platform announced today that it was introducing a new daily withdrawal limit of $5,000 per user, whereas the previous limit had been set at $500,000 a day. CoinLoan said the measures would be temporary, but effective immediately.

While CoinLoan boasted of being probably the only company unaffected by recent stablecoin collapses, hedge fund wipeouts, or liquidity issues on major protocols, the Estonian-based platform blamed the panic caused by its competitors’ liquidity issues for a “spike” in customer withdrawals.

The new withdrawal limit was called a “precaution” by the company to ensure a balanced flow of funds and avoid “liquidity-related interruptions.” It claimed the current level of liquidity was sufficient to meet all customer needs, though it acknowledged that halting all withdrawals would have been “more convenient” from a business perspective.

CoinLoan joins a long list of CeFi companies struggling in the wake of the brutal market downturn.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Foxy

Coincu News