Crypto lender CoinLoan is making “temporary” changes to its customer withdrawal limits.
In an announcement, the company said it would be reducing withdrawal limits to just $5,000 a day.
Announcing the limit change with immediate effect, the company said: “CoinLoan is probably the only company unaffected by the controversies of stETH, Luna/UST, Three Arrows Capital, and DeFi protocol issues.”
Despite its “unaffected” claim, the announcement of temporary changes will have a chilling effect on consumers who have come to learn that in crypto that temporary changes can ultimately last a considerable time.
CoinLoan another addition to the temporary pause list
CoinLoan joins a growing list of crypto companies that have recently made changes to their withdrawal policies, lowering limits or in most cases suspending withdrawals entirely.
While customers might understandably worry about this development, CoinLoan was at pains to assure customers that there was absolutely nothing to be concerned about.
“Please note that this [withdrawal limit] is only a precaution, as the current level of liquidity meets our users’ needs,” said CoinLoan.
The company went on to add: “Please rest assured that your assets are safe. CoinLoan is the oldest CeFi platform on the lending market. Since 2017, we have seen multiple adverse situations, but each of them gave CoinLoan strength and contributed to its growth. We understand how to handle difficulties, and we are also well-equipped to prevent them.”
CoinLoan said that the withdrawal limit was made with customers in mind, as the preferable option to suspending withdrawals entirely.
A recent history of temporary pauses
June 13 – Celsius suspends withdrawals as the company seeks to put itself in a better financial position “to honor, over time, its withdrawal obligations.”
June 16 – Finblox reduces withdrawals to just $500 a day, places a pause on rewards.
June 17 – Babel Finance announces it has “temporarily suspended” withdrawals.
June 20 – Bancor “temporarily” suspends impermanent loss protection.
June 22 – Voyager lowers withdrawal limits from $25,000 to $10,000 a day.
June 23 – CoinFlex announces it is “pausing all withdrawals.” The company also states that it expects to unpause on June 30, a deadline it later misses.
June 30 – Finblox raises withdrawal limits to $3,000 a day and resumes reward payments. Some caveats still apply.
July 1 – Voyager cements its temporary club status by announcing that it will “temporarily suspend trading, deposits, withdrawals, and loyalty rewards.”
July 4 – Vauld suspends all trading activities.
July 4 – CoinLoan makes a temporary change to withdrawal limits by drastically cutting them.
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