Liquidity Issues Force Poolin to Suspend Withdrawals, Flash Trades, and Swaps
Crypto mining pool service provider Poolin becomes the latest casualty of panic withdrawals that left several crypto platforms with serious liquidity issues forcing them to halt withdrawals, among other services.
Poolin Suspends Withdrawals, Flash Trade
Beijing-based mining pool Poolin has announced the suspension of withdrawals, flash trades, and internal transfers in its bid to preserve liquidity amid a “dull crypto market.” The company is facing liquidity issues and operational stability after mass withdrawals, media reports said.
Recently, Poolin was in the news for sending 4400 BTC to Binance. Beginning with Celsius Network, which crashed in mid-June following mass withdrawals, several crypto exchanges and Defi platforms have suspended withdrawals amid the market shakeout.
“PoolinWallet plans to pause all withdrawals, flash trades, and internal transfers within Poolin systems from 10:00 PM, GMT+8, September 5, 2022. This imperative serves our goal of preserving assets, stabilizing liquidity, and operations in the midst of the dull crypto market, meanwhile, we continue to explore strategic alternatives with various parties,” the crypto mining platform said in a post on Medium on Monday, adding that it’s trying to provide further update including “feasible solutions” in a week.
Zero Fee Promotion to Boost Liquidity
In a detailed statement on its website, Poolin reassured that users’ assets are safe and “the company’s net worth is positive.” It also launched zero-fee promotion and settlement adjustments on its mining pool platform in a bid to stabilize liquidity and operations.
The Zero Fee offer targets mining of BTC and ETH while it is valid for other coins also. It has offered two schemes – one lasting from September 8 to December 7, 2022, and another from September 8, 2022, to September 7, 2023.
The first offer of zero fee mining for two months is for all customers, while the second is valid for one year and is open to only those customers who have more than 1 BTC or 5 ETH in pool balance or Pool Account, Poolin clarified in the statement.
No Withdrawals of BTC, ETH Balance
As part of the settlement adjustment, daily mined BTC and ETH coins will be paid out per day after September 6. However, the payout of the current BTC and ETH balance on the pool will remain suspended. The schedule for the BTC and ETH balance whose withdrawal is stopped will be released once the details are worked out.
Withdrawals from Pool Account will also remain suspended, and a schedule will be released in two weeks for their resumption, the company said.
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