CoinLoan Lowers Withdrawal Limits During Bear Market

CoinLoan explained that in order to ensure the stability of its service, it'll lower the limit for users' withdrawals during the bear market.

CoinLoan - a company that offers crypto-backed loans and interest-earning accounts - said it will balance the flow of funds on its platform by reducing the account withdrawal limits. The firm assured that the amendment is temporary, as each user would be able to withdraw up to $5,000 per 24-hour rolling period.

CoinLoan's Response to the Market Downturn

CoinLoan, the Estonia-based cryptocurrency lending platform, announced that it is taking temporary measures to deal with the adverse market conditions. One of its temporary actions is lowering withdrawal limits.

The company said that suspending all withdrawals is not on the agenda, as some customers have saved their life savings on CoinLoan. The procedure will allow the platform to run smoothly in future, as "prevention is better than cure."

The crypto lender also said that it has no exposure to distressed protocols, such as Terra, Three Arrows Capital, and Celsius. "The reason is simple - our strategy bars risky activities that could endanger CoinLoaners' funds," the entity added.

The team also reassured its users that their assets were safe. As one of the oldest CeFi platforms in the industry, CoinLoan has seen many negative events and is confident that its experience will guide it through the current chaos:

“Since 2017, we have seen multiple adverse situations, but each of them gave CoinLoan strength and contributed to its growth. We understand how to handle difficulties, and we are also well-equipped to prevent them.”

The Biggest Losers

The prolonged crypto winter has significantly damaged leading digital asset exchanges like Coinbase, Gemini, and Bybit. As a result of the dwindling investor interest, all those had to let go of some employees.

The Singapore-based trading venue Vauld and the lending firm BlockFi were also hit. The former dismissed 30% of its staff and suspended all transactions and withdrawals. Earlier today (July 5), CryptoPotato reported that Nexo is prepared to take over the troubled entity.

BlockFi also had to lay off some of its staff. Additionally, the State of Iowa ordered it to pay an administrative fine of over $1 million for not registering as a securities trading platform.

Despite all these issues, FTX (an exchange led by Sam Bankman-Fried) made its move to purchase BlockFi. Interestingly, the offer was for a mere $25 million (given that BlockFi's latest known private valuation was $3 billion).

Ledn disclosed similar plans as it intends to lead a $400 million fundraising and provide a $50 million equity contribution that could give it majority control of BlockFi.