The crypto-oriented lender decreases its withdrawal limit by 99% in the wake of the cruel crypto market slump.
CoinLoan, Estonia-based crypto peer-to-peer (P2P) lending platform, has recently announced that it would be limiting its withdrawals from $500,000 to $5000 per 24-hour rolling period in order to weather out the current crypto market storm.
According to the official announcement issued on July 4th, the company took such a drastic “provisional” measure to prevent any liquidity-related interruptions, balance the flows of funds, and ensure smooth operation in the near future.
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CoinLoan also implied that it has faced a similar catastrophe in the crypto market earlier, reassuring its users that the assets held on the platform will be safe. The company added:
“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.”
CoinLoan additionally noted that the collapse of Terra UST and Three Arrows Capital’s default on loan didn’t touch the platform in any way possible, adding that its innovative “strategy bars risky activities that could endanger” its users’ funds.
CoinLoan, founded in 2017 and headquartered in Estonia, is a worldwide crypto-driven lending platform that has raised a total of $3.1 million in funding. The platform, licensed under the Estonia Financial Authority, supports share transfers through SEPA, SWIFT, MasterCard, Visa, AdvCash, as well as wire transfers.
There is currently no information on when the temporary measure will be lifted. Despite the news, the price of CoinLoan’s native token CLT has increased by 3.76% in the past 24 hours and currently sits at $16.26.
On top of that, the firm also mentioned that it wouldn’t be fully halting its withdrawals, as some of its rivals earlier did. For instance, back in June, the New Jersey-based crypto exchange Celsius decided to completely shut down withdrawals. Since then, the firm hired a number of restructuring lawyers and advisers, sacked a significant portion of its employees, and even repaid around $143B in loans to possibly prevent complete bankruptcy.
Likewise, Babel Finance and Vauld have followed in Celsius’ footsteps and disabled all of its withdrawals, redemptions, trading, and deposits. Finblox, a crypto staking platform, also tightened its daily and monthly withdrawal limits to $500 and $1500, respectively.
