CoinList addresses “FUD” regarding withdrawals and attributes delays to technical problems.
CoinList, a cryptocurrency exchange, and initial coin offering (ICO) platform responded to “FUD” on Twitter after a blogger wrote that users had said they hadn’t been able to withdraw money for more than a week. This made people worry that the company was having cash flow problems or had gone bankrupt.
The exchange is “not insolvent, illiquid, or close to bankruptcy,” CoinList claimed in a post on Twitter on November 24. “There is a lot of FUD floating around that we would like to address head-on.” But it claimed that “technical difficulties” were affecting its deposits and withdrawals.
Related: A “failed” trading strategy is blamed for Freeway’s decision to stop withdrawals.
Earlier, the 245,000 people who follow the cryptocurrency-focused blog Colin Wu had tweeted that “certain community members” using CoinList had been unable to withdraw for more than a week due to maintenance.
Wu said in a tweet that CoinList’s $35 million claim against the bankrupt crypto hedge fund Three Arrows Capital was a “loss.” This probably made people wonder about the company’s ability to stay in business or get money.
To allay concerns that have led to bank runs on other platforms, CoinList stated that “several custodians” are involved in the movement of wallet addresses as well as an upgrade to its internal systems.
A few cryptocurrencies “are migrating more slowly than expected,” the company claimed, citing unexplained “custodian challenges.” On Nov. 23, tokens on the platform were affected by an “outage […] unconnected to the migration” at one of its undisclosed custodian partners.
On its status page, withdrawals are listed as having “degraded performance,” with one cryptocurrency experiencing delayed deposits since November 16 and four cryptocurrencies unavailable for withdrawal since November 15.
Once more, there is no liquidity shortage; this is only a technical problem, according to CoinList. It asserted “dollar for dollar” ownership of “all user assets” and stated that its proof of reserves would be made public.
For more details, Cointelegraph contacted CoinList but did not immediately hear back.
CoinList asserted on November 14 that it had no connection to the now-defunct FTX exchange, but consumers are becoming warier of centralized platforms and have hurried to secure safe custody of their money, as shown by the spike in sales of Trezor and Ledger reported in mid-November.
Related: The DOJ doesn’t like that Celsius wants to reopen withdrawals and sell stablecoins.
At the same time, Bitcoin outflows
tickers down $16,548
Exchange-traded cryptocurrencies like bitcoin, Ethereum, and stablecoins reached record highs, and activity on decentralized exchanges grew in tandem.
