Cryptocurrency exchange CoinList has stated that it is not close to bankruptcy as it deals with ongoing research and development. It added that it is not insolvent or illiquid and only suffers from technical problems affecting deposits and withdrawals.
Platform eviction The rumor spread on Twitter after users reported difficulties withdrawing funds for more than a week, saying that the incident was a purely technical problem, rather than a liquidity crisis.
CoinList official statement
CoinList, which also operates as the largest cryptocurrency crowdfunding platform, has revealed that it is upgrading its internal ledger systems and migrating wallet addresses with multiple custodians. This move is expected to improve its product and service offerings while maintaining compliance.
Without naming any names, CoinList further added that the gap in cryptocurrency withdrawals was due to maintenance by one of its custodian partners, which was facing an outage.
“As with any large company, there are bumps along the way. Custody issues mean that some tokens are taking longer than expected to migrate (ROSE, CFG, FLOW, MINA). One of our custodians experienced a service outage yesterday unrelated to migration. which affected several tokens on CoinList.”
It was Chinese cryptocurrency reporter Colin Wu who open previously reported that “some community members” using CoinList “were unable to withdraw for more than a week due to maintenance.” In recent weeks, halting withdrawals has become an ominous sign of bankruptcy. Therefore, the news was enough to instill fear among users of another possible crash.
Crypto companies are in trouble
The focus of the cryptocurrency industry remains on the implosion of FTX, and community members are now speculating what other companies may be swept away in the fallout. It seems that many notable companies are about to enter Chapter Eleven.
First, DCG’s trading arm Genesis halted withdrawals. The company, which was one of the largest and most developed players in the world of crypto finance, is said to be facing bankruptcy due to having a large portion of the loans of the two failing companies – FTX and Three Arrows Capital (3AC).
Cryptocurrency lending and trading platform BlockFi was another casualty, as it paused customer withdrawals earlier this month due to large exposure to FTX. As a result of the fallout, it has been reported that the platform is looking into bankruptcy.
The post CoinList Breaking the Silence Assuring Users It’s Not Close to Bankruptcy appeared first on CryptoPotato.