CoinList addresses ‘FUD’ on withdrawals, cites technical issues for delays
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Cryptocurrency exchange and Initial Coin Offering (ICO) platform CoinList took to Twitter to speak out about “FUD” after a blogger tweeted that users reported being unable to withdraw funds for over a week, sparking fears that the company had liquidity issues or was insolvent.
“There’s a lot of FUD going around that we’d like to address head on,” CoinList said on Twitter on November 24th. yarn which stated that the exchange is not insolvent, illiquid or close to bankruptcy. However, it said its deposits and withdrawals were being affected by “technical issues”.
2/ We are updating our internal ledger systems and moving wallet addresses that involve multiple holdings.
This is one of our many efforts to provide our customers around the world with better products and services while maintaining compliance.
— CoinList (@CoinList) November 24, 2022
Crypto-focused blogger Colin Wu used to be tweeted to his 245,000 followers that “some members of the community using CoinList” have been unable to withdraw for over a week due to maintenance.
CoinList has a $35 million creditor claim from bankrupt crypto hedge fund Three Arrows Capital, which Wu said in a tweet was a “loss” that likely sparked concerns the company was insolvent or illiquid.
CoinList explained that the upgrade of its internal systems and the transfer of wallet addresses, which involves “multiple custody” to allay fears that have seen banks operate on other platforms.
The company cited unexplained “storage issues” as the reason why the transfer of certain cryptocurrencies was “taking longer than expected” as one of its unnamed storage partners suffered an “outage”. […] not related to the transfer” on November 23, which affected tokens on the platform.
Its status page shows “degraded performance” for withdrawals. Four cryptocurrencies have not been able to be withdrawn since November 15th, and one has delayed deposits since November 16th.
“Again, this is purely a technical issue, not a liquidity crisis,” CoinList said. It claimed to own “all user assets dollar for dollar” and announced plans to publish its proof of assets.
Cointelegraph has reached out to CoinList for more information, but did not immediately receive a response.
Related: FTX illustrates why banks need to embrace cryptocurrency
Coin list argued on Nov. 14 that it had no exposure to the now-bankrupt FTX exchange, but users are increasingly nervous about centralized platforms and have rushed to ensure safe custody of their assets, as evidenced by the increase in sales reported by hardware wallets in mid-November. providers Trezor and Ledger.
Around the same time, the outflow of Bitcoin (BTC) and stablecoins from exchanges reached an all-time high, and decentralized exchanges saw a corresponding increase in activity.