By
Chimamanda U. Martha
April 19th, 2024
CoinList has refuted any claims it is nearing insolvency despite the issues with deposits and withdrawals on its platform.
Amid reports of a liquidity crunch, crypto listing platform and exchange, CoinList, has stated that technical issues are responsible for the deposit and withdrawal delays on the platform,
CoinList published a series of tweets in a bid to allay the FUD that surrounded the company after crypto blogger, Colin Wu, pointed out the issues with withdrawals. Wu noted that the company had an exposure of $35 million in the now-defunct 3AC. He also pointed out that the owner of the embattled Genesis, DCG, was one of the earliest investors in CoinList and that its current issues could affect CoinList.
Withdrawal Delays Due to Technical Issues
On its part, CoinList has refuted any claims it is nearing insolvency despite the issues with deposits and withdrawals on its platform. Previously, the firm also explained that it had no exposure to FTX.
Further, the firm explained it was upgrading its internal ledger system and migrating wallet addresses with multiple custodians. “This is one of many efforts we are undertaking to offer our customers around the world better products and services while maintaining compliance,’ it said.
Additionally, the firm added that one of its custodians suffered a setback that impacted tokens on CoinList. According to the firm, affected tokens include ROSE, CFG, FLOW, and MINA.
CoinList crossed the $1.5 billion valuation in October 2021 after raising $100 million to become one of the few crypto unicorns. It noted it held the dollar equivalent of all assets on its platform in reserve and plans to publish proof of its reserves. Despite the calls for calm, agitated users of the platform continue to call CoinList to release their assets.
FUD Pervades Crypto Market
After seeing a slight recovery in May-June, the recent FTX collapse has eroded any short-term hopes of market recovery. Since the crash, crypto prices have become more volatile.
Again seeing as Genesis, Galaxy Digital, Sequoia Capital, Galois Capital, BlockFi, Crypto.com, and Wintermute were revealed as some of the companies affected by the crash, faith in centralized exchanges and crypto companies is at an all-time low. Many users are rushing to take self-custody of their assets and purchase hardware wallets.