A platform specializing in equity financing (crowdfunding) of blockchain projects, CoinList was forced to interrupt the deposit and withdrawal of several cryptocurrencies, including FLOW, MINA and CFG.
On its Twitter account, CoinList mentioned issues with one of its service providers in charge of storing its digital assets, without specifying which company it is.
CoinList’s depository partners are Anchorage, BitGo, Gemini Custody and Silvergate Bank, but we don’t know which provider is currently causing issues.
Our storage partner is undergoing maintenance that is taking longer than expected. During this period, deposits and withdrawals for FLOW, MINA and CFG are not available. Rest assured that your funds are safe. Thank you for your patience!
Our storage partner is undergoing maintenance that is taking longer than expected. During this period, deposits and withdrawals for FLOW, MINA and CFG are not available.
Rest assured your funds are safe. Thank you for your patience!
— CoinList Support (@CoinListSupport) November 23, 2022
If CoinList mentions a technical problem with a technology partner, soon some users of the platform start to worry about the possible insolvency of the company.
As a reminder, CoinList suffered a loss of $35 million as a result of the collapse of the Three Arrow Capital (3AC) fund, which owed several billion dollars to its creditors.
Faced with a wave of anxiety that has swept across social media, CoinList once again expressed its opinion on its Twitter account in an attempt to reassure its users.
There is a lot of FUD around, which we would like to deal with head-on. CoinList is not insolvent, illiquid or close to bankruptcy. We are having technical issues with depositing and withdrawing funds.
We are updating our internal ledger systems and migrating portfolio addresses with multiple custodians.
This is one of our many efforts to provide our customers around the world with better products and services while complying with regulatory requirements.
As with any great undertaking, there are obstacles along the way. Custodian issues mean that the transfer of some tokens is taking longer than expected (ROSE, CFG, FLOW, MINA).
Yesterday one of our custodians experienced a non-migration failure that impacted many of the tokens on CoinList.
Again, this is a purely technical issue, not a liquidity crisis. We store all user assets dollar for dollar.
In any case, this is not the quality of service we strive for, and we apologize for the inconvenience caused. Confirmation of reserves is in our track record.
1/ There is a lot of FUD around that we would like to deal with.
CoinList is not insolvent, illiquid or close to bankruptcy. We are experiencing technical issues affecting deposits and withdrawals.
—CoinList (@CoinList) November 24, 2022
CoinList’s tweets illustrate the current tensions in the crypto market, which has been hit hard by the recent bankruptcy of FTX, as well as Celsius, BlockFi, and Voyager Digital.
Some people remind CoinList that recently bankrupt companies were just pretending everything was fine.
— saxophone (@SpongeBob_sax) November 25, 2022
In view of the challenges that many crypto companies are facing today, it is highly recommended not to leave your bitcoins (BTC) and cryptocurrencies on platforms that may already be in serious financial trouble.
It may be wise to store your cryptocurrencies in a secure crypto wallet like Ledger, which also offers free bitcoins with any crypto wallet purchase: click here to learn more.
In the case of CoinList, this may indeed be a simple technical issue, as the company claims, the future will show us.
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