Poolin, a cryptocurrency mining pool provider, was headquartered in Beijing, China. It announced Monday that it had stopped withdrawing from its crypto wallet service. This is a sign of serious trouble within the company.
Poolin was established in 2017. It offers a multicryptocurrency mining pool and custodial wallet. They also offer block explorer, block explorer, and transaction accelerator. This allows users to invest with ease in digital assets like Bitcoin Cash, Ethereum Cash, Litecoin and ZCash.
While Poolin’s mining pools continue operating normally, the Poolin Wallet announced to its users that it paused all withdrawals, flash trades, and internal transfers within Poolin systems from 10 a.m. EDT on September 5 as part of efforts to preserve assets and stabilize liquidity.
“This imperative supports our goal to preserve assets, stabilize liquidity, and operate amid the dull cryptocurrency market. The firm stated that they are continuing to explore strategic options with different parties.
The company also stated that all assets in PoolinWallet have been secured and that they will provide additional details and solutions within the week.
Poolin Wallet stated that it is currently facing liquidity problems because of the recent increase in withdrawals.
Kevin Pan, the founder of Poolin and its CEO, said on Sunday that Poolin was experiencing liquidity issues, but assured customers that their assets are safe. Pan said that the company would soon have a solution. Pan suggested that this plan might include debt.
In a separate announcement on Monday, Poolin said that it is providing its users with zero transaction fees for Bitcoin and Ethereum mining from September 8 through to December 7, and for 12 months for customers with more than 1 BTC or 5 ETH in their pool balance or in Pool Account.
Terror in Crypto Markets
Poolin is now the latest crypto company to be facing liquidity issues. The fear that people will not be able to withdraw their funds is growing this year. Companies that tried to build a digital bank through digital assets are in deep trouble.
Many liquidity-starved crypto lending companies realized that they couldn’t meet customer demand after the crash of the stablecoin TerraUSD (UST), and the collapseof Three Arrows Capital.
Three months ago, several lenders, including Voyager Digital and Babel Finance, Voyager Digital and Zipmex, stopped withdrawals and transfers. Finblox, CoinLoan and others allowed withdrawals to be made but with a limit.
Image source: Shutterstock