CoinLoan said it is balancing the flow of funds on the platform by reducing the account withdrawal limits. The policy became effective immediately after the announcement on Monday, with daily withdrawals being reduced to $5,000.
CoinLoan Takes Step Amid Market Downturn
CoinLoan became the latest firm to join a number of other crypto lenders, like BlockFi and Vauld, in freezing or limiting user withdrawals. However, the firm assured that the reduction of withdrawal limits is “provisional” and would be lifted when market conditions allow.
Also, CoinLoan said that suspending all withdrawals is not on the agenda as some customers have stored their life savings on the platform. It added that this would help the platform conduct stable operations in the future as “prevention is better than cure.”
Moreover, CoinLoan claimed to be the only company unaffected by the collapse of the Terra ecosystem, Three Arrows Capital’s bankruptcy, and Celsius’ financial woes. “The reason is simple – our strategy bars risky activities that could endanger CoinLoaners’ funds,” CoinLoan explained.
Meanwhile, the CoinLoan team assured users that their assets were safe. Being one of the oldest crypto lending platforms, it has “seen multiple adverse situations, but each of them gave CoinLoan strength and contributed to its growth.” The firm is confident its expertise will guide it through the current chaos.