Temporary change in withdrawal limits
In recent months, crypto lending businesses have faced a litany of challenges. CoinLoan is probably the only company unaffected by the controversies of stETH, Luna/UST, Three Arrows Capital, and DeFi protocol issues. The reason is simple – our strategy bars risky activities that could endanger CoinLoaners’ funds.
Yet, like any company, we must take notice of the market. The turmoil caused by the issues at several of its participants (BlockFi, Celsius, Voyager, and others) is impacting the whole industry. One of the consequences is a spike in withdrawals of assets from CoinLoan.
Our response to market situation
Crypto lending is the backbone of our business. The interest we pay on the Interest Accounts is yielded by issuing overcollateralized loans to other platform users. Hence, in some instances, the estimated date of a complete withdrawal of assets from the Interest Accounts comes before, not after, loan closure. With this in mind, CoinLoan is taking pre-emptive steps to ensure smooth operation in the future.
We are introducing a temporary measure – a reduction of the account withdrawal limit – in order to balance the flows of funds and prevent liquidity-related interruptions. Please note that this is only a precaution, as the current level of liquidity meets our users’ needs.
- This temporary restriction applies to the total amount of daily withdrawals per account: every user can withdraw up to $5,000 per 24-hour rolling period.
- The change takes effect immediately (July 4).
- The reduction is provisional. We are looking forward to lifting this measure once the market situation allows it.
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.
Weathering the storm
From a business perspective, halting all withdrawals, like some other companies have done, would be more convenient. However, our clients, the users who have entrusted us with their funds, are our biggest priority.
We understand that some of you may be storing your life savings on CoinLoan, so we cannot simply disable withdrawals. Thus, we are only lowering the limit, so you can withdraw a portion of your assets if necessary.
Thank you for your continued support and trust. This temporary measure will let us ensure stable platform operations now and in the future. Prevention is better than cure, and being proactive is an integral part of our philosophy.
We are confident that the current situation will make CoinLoan stronger, so we will continue delivering the best-in-class services to our users.