Crypto companies on alarm during the market uncertainty

Crypto companies on alarm during the market uncertainty

Several cryptocurrency exchanges and credit platforms have announced withdrawal stops in the past two weeks because the markets around the world deal with bear territory.

Here is a timeline that tears the stock exchanges and credit platforms that have come under liquidity pressure.

week of June 13th

The crypto-lending platform Celsius was one of the main actors who shook the crypto world for the first time when it announced that he was pausing, exchange processes and transfers between accounts on its platform due to "extreme market conditions" before opening the Monday market on June 13th.

Then the infection of the market began to spread; The next morning KryptoBörse Bitcoin degrees interrupted For about three hours in the middle of Celsius' impact. Some cryptics have also worked to distance themselves from Celsius due to the crisis.

On Wednesday there was more market volatility after it was reported that Three Arrows Capital (3AC), a hedge fund company geared towards digital assets, faces a possible bankruptcy after a liquidation of $ 400 million. The company had already lost a big loss with the collapse of the Stablecoin Terra USD in May due to its significant investment in Luna.

On Thursday, the crypto staking and earnings generation platform Finblox, based in Hong Kong, announced that the investments from 3AC secured, that it will impose a monthly payout limit of $ 1,500 in view of 3AC and will suspend the reward distribution.

"This series of measures is a necessary step in such a highly Volatile market and we believe that you should help us and our community to cope with the effects," said Finblox in a statement.

crypto loan babel finance withdrawn on Friday, citing "unusual liquidity pressure". The platform updated the following Monday that it "made preliminary agreements about the repayment duration of some debts" in order to reduce its liquidity pressure at short notice.

week from June 20th

The liquidity pressure spread further. On the night before the market opening on Monday, the Hong Kong, Hong Kong Hoo in A Blog entry Delay by 24 to 72 hours, citing "market volatility and liquidations by large institutions in the crypto industry", which triggered panic with its users, as many were looking for payments. The exchange

in his last announcement, published on Friday, HOO said some of his partners and some institutions were confronted with the problem of the limited liquidity, which was " the return channels of the Hoo custody account in these institutions ”.

The crypto loan Maple Finance, based in Sydney, was also faced with liquidity pressure and said on Tuesday that his lenders had to wait for the borrowers' repayments. "There can be cases in which there is not enough cash in the pools", according to the company said .

The Coinflex crypto exchange was one of the youngest companies that announced a break during the withdrawals, the company announced on Thursday. Customers can continue to act and deposit, but according to an explanation, no funds can be taken from the platform.

on the way to the last week of June remains a great uncertainty, and the market participants are concerned with concern because they will still drop potential shoes.

"If one of the greatest crypto hedge funds can get under water due to leverage, the market participants must be aware of the entire leverage on the market and how it is influenced in times when this loan suddenly disappears," Mads Eberhardt, Cryptocurrency Analyst at Saxo Bank to Blockworks.

"[that] has the power to force many crypto loans to their knees and effectively further heat up," he added.

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The article Crypto firms on alert while market uncertainty is not a financial advice.