By
Godfrey Benjamin
April 20th, 2024
Leading multi-crypto mining service Poolin has announced that it has discontinued withdrawals on its platform due to liquidity challenges.
One of the world’s biggest mining pools, Poolin, has announced the temporary suspension of Bitcoin and Ether withdrawals from its platform. Poolin attributes the halt in wallet service withdrawals to liquidity problems.
According to the announcement made on Monday, Poolin said the liquidity problems are due to a recent spike in withdrawal demands. The company assured users of asset and account security, stating that the firm’s net worth is positive. Poolin also said that its mining pool services are “not much affected”.
Poolin Set Measures to Compliment Affected Users of the Withdrawals Issue
According to an official announcement, Poolin seeks to stabilize liquidity and operation by offering several promotions and settlement adjustments. The mining pool service is offering zero fees for all clients mining Bitcoin and Ether. This promotion will last from September 8 to December 7, 2022. It also applies to other coins that use ETH hashrate after it adopts PoS.
Clients with more than 1 BTC or 5 ETH in their accounts will also enjoy an exclusive zero fee offer for one year from September 8, 2022, to September 7, 2023. The promotion also extends to other assets that may use the ETH hashrate when Ethereum officially begins using PoS.
Poolin also says that the platform’s Bitcoin payment method will change from Full Pay-Per-Share (FPPS) to Pay-Per-Last-N-Shares (PPLNS). This settlement adjustment plan will begin on September 8 and does not affect other coins’ payment methods.
According to Poolin, Bitcoin and Ethereum balances will be put on hold temporarily. The company will make a snapshot of the remaining BTC and ETH pool balances on September 6 to figure out the balances, and then pay out the daily mined coins after the snapshot date.
Crypto Firms that Recently Suspended Trading
Recently, publicly traded cryptocurrency trading platform Voyager Digital Limited announced the suspension of trading, withdrawals, deposits, and loyalty rewards. The company’s CEO, Stephen Ehrlich, said it was the right thing to do, considering unfriendly market conditions. He said the decision would allow the firm additional time to continue exploring strategic alternatives with several parties.
Singapore-based crypto lending platform, Vauld, also suspended major activities on its platform. The lender also cited unfavorable market conditions in addition to financial difficulties of key partners. According to a corporate statement published in July, Vauld specified that one of the market climate factors caused “customer withdrawals in excess of $197.7 m” in less than a month. The statement also suggested that the heavy withdrawals were caused by the UST stablecoin collapse, Three Arrows Capital loan defaults, and Celsius Network’s decision to pause withdrawals. Shortly after the publication, London-based crypto lender Nexo began the process of potentially acquiring Vauld.
Similarly, the crypto lending platform Celsius stopped withdrawals due to extreme market conditions. The severity of the issue caused the platform’s lawyers to recommend that Celsius file for Chapter 11 bankruptcy. Although Celsius hired new lawyers to help with restructuring, it eventually succumbed and filed in the United States Bankruptcy Court for the Southern District of New York.