Zipmex Exchange Invested By Coinbase, Withdrawals Suspended
Zipmex, a cryptocurrency exchange based in Singapore and offering its services worldwide, has announced the suspension of withdrawals.
Since the start of the crypto winter, countless companies have had their accounts affected. Like banks, these companies are over-exploited and do not currently have the full liquidity represented by their virtual operations. Now they seem to be shutting down the faucet due to a liquidity crunch.
Zipmex is a Coinbase-invested exchange that focuses most of its efforts on the Asian giant, China, with offices in Singapore, Thailand, Indonesia and Australia. In addition to providing a popular spot cryptocurrency trading service, it also offers an interest in leveraging users’ cryptocurrencies, a service similar to the now famously bankrupt Celsius.
The exchange offers annual returns of up to 10% through stablecoins, in the case of specific cryptocurrencies like Bitcoin or Ethereum, they will reach 6% per year.
Zipmex stopped withdrawing money
“Due to a combination of circumstances beyond our control including volatile market conditions,”
Not too surprised by this reasoning and decided to make this move to “maintain the integrity of the platform“, essentially to keep the crypto exchange afloat and prevent users from emptying their vault.
Despite being one of the exchange’s investors, Coinbase is currently safe as one of the few open market companies that investors trust.
Coinbase is currently looking for ways to save money, and the company has every intention of protecting the funds it has without taking significant risks. In particular, the exchange froze the recruitment of new employees after several rounds of mass layoffs and ended its affiliate program.
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