Poolin Stops Withdrawals Of Bitcoin Due To Liquidity Problems
✍️ 14 October, 2022 - 10:44 👤 Editor: Jakub Motyka
- Poolin has decided to pause all withdrawals to wallets due to liquidity issues.
- It will seek to preserve assets and stabilize its liquidity levels before resume operations.
- The liquidity epidemic continues to spread within the world of cryptocurrencies.
Poolin, one of the leading Bitcoin (BTC) mining pools, has decided to suspend withdrawals to its PoolinWallet due to liquidity issues. Through a statement through its official blog on September 5, the platform announced that withdrawals, flash trades and internal transfers within the Poolin systems would be paused until further notice.
According to team statement, their goal is to “preserve assets, stabilize liquidity and operations amid the bleak cryptocurrency market”. They hope to present an action plan with possible solutions in the coming days. In the meantime, it will provide some compensation for users, such as zero fees for Bitcoin and Ethereum mining until December 7th.
Poolin Is Exploring Alternatives To Solve Their Liquidity Problems
In his statement, Poolin admits to being “exploring strategic alternatives with various parties”. Many associate the current status of the platform with China's ban on cryptocurrency mining. Remember that the company is based in Beijing, and is not exempt from the policies and regulations of the red giant.
China has shut down several cryptocurrency mining companies within the country, which, according to MicroStrategy CEO Michael Saylor, “is a trillion dollar mistake”. However, according to data from the University of Cambridge, clandestine operations have intensified since the ban.
The liquidity epidemic continues to spread. What will happen to Bitcoin?
It is not the first platform that has paused its withdrawals and transactions due to liquidity problems. In the wake of the downtrend, many exchanges have taken such action like Celsius, 3AC, Zipmex and many more. Recently Coinbase and FTX announced that they would temporarily pause withdrawals, but assured that it was a preventive measure during the Merge, and not due to liquidity problems.
Poolin was the mining firm responsible for 10.8% of the BTC blocks mined during the last 12 months. After the end of its alliance with 3AC and BlockFi, which are experiencing a liquidity crisis, the platform's hashrate was reduced to 6.8%. At the moment, the cryptocurrency market is waiting for the end of this “domino effect”.
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