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The cryptocurrency lending firm CoinLoan has announced it will reduce its $5,000 daily withdrawal cap from $500,000 to $5,000. The Estonia-based platform attributed a "spike" in customer withdrawals to the fear of its competitors' liquidity problems. It stated that the current liquidity levels are adequate to meet client needs. CoinLoan is the latest in a long line of CeFi businesses that are suffering as a result of the severe market slump. https://twitter.com/CryptoWhale/status/1544032176097955840
Pausing Withdrawals More Convenient
The withdrawal cap on CoinLoan is being reduced by a factor of 100. Despite claiming to be "possibly the only company unscathed" by recent stablecoin failures, hedge fund failures, or liquidity problems on significant protocols, CoinLoan asserted that the "turmoil" brought on by these companies has now resulted in a "surge in withdrawals of assets from CoinLoan." The cryptocurrency lending and trading platform revealed today that it was instituting a $5,000 daily withdrawal cap per user in place of the previous $500,000 cap. According to CoinLoan, the measures would only be in place for a short period. The corporation described the increased withdrawal cap as a "precaution" to ensure a balanced flow of cash and prevent "liquidity-related disturbances." Although it recognized that stopping all withdrawals would have been "more convenient" from a commercial standpoint, it asserted that the present level of liquidity was adequate to meet all client needs.