Poolin suspended withdrawals from its wallet in an effort to “protect assets and stabilize liquidity and operations”. The team promises to give viable solutions within a week.
In a September 5 post, Poolin announced the suspension of all PoolinWallet withdrawals, citing liquidity concerns. According to the platform, all withdrawals, flash transactions and internal transfers within Poolin systems will be suspended.
The aim would be to “protect assets and stabilize liquidity and operations amidst a turbulent crypto market”.
PoolinWallet however states that all user assets are safe. The company promises to provide more information on this and workable solutions within a week. It should however be to note which Poolin says is “exploring strategic alternatives with multiple parties”.
In order to compensate its users, Poolin will not charge fees on Bitcoin and Ethereum mining between September 8 and December 7. The platform will also offer other benefits to users with higher pool balances. For example, those with more than 1 BTC or 5 ETH will benefit from this offer for one year.
Could this crisis be due to the ban on crypto in China?
Poolin is based in China, a country where crypto mining is strictly prohibited. Its headquarters are in Beijing, and its difficulties may be caused by the country’s repressive measures.
Indeed, China has shut down several crypto mining entities. Which, according to Michael Saylor of MicroStrategy, is a trillion dollar mistake. However, data from the University of Cambridge reveals that some Chinese minors continue their activities.
Poolin has already collaborated with 3AC and BlockFi
Before the crisis, Poolin’s hash rate was over 10%. Currently, it does not exceed 6.8%. Foundry USA, AntPool and F2Pool now take the lion’s share of the hashrate.
Interestingly, Poolin previously worked with Three Arrows Capital and BlockFi, two of the biggest victims of the crypto bear market. BlockFi has associated to Poolin to extend its services to crypto miners, while 3AC and Poolin Wallet have sign a strategic partnership.
The company also worked on a DeFi and Bitcoin mining service, which allowed users to use pETH18C, a Bitcoin hashrate-based token, in mining activities. yield farming.
Currently, it is unclear what this suspension of withdrawals actually means. While waiting for Poolin to give more explanations, we can only hope that the scenario of Celsius or of Travel Digital does not repeat itself.
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