Cryptocurrency exchange and initial coin offering (ICO) platform CoinList took to Twitter to refer to “FUD” after a blogger tweeted that users reported being unable to withdraw funds for over a week, raising concerns that the company has liquidity problems or is insolvent.
“There are a lot of FUDs around that we would like to get to the bottom of,” CoinList told CoinList in a Nov. 24 Twitter thread that said the exchange “is not insolvent, illiquid, or close to bankruptcy.” However, he said his deposits and withdrawals are being affected by “technical issues”.
2/ We are updating our internal ledger systems and migrating wallet addresses with multiple custodians.
This is one of the many efforts we are making to offer our customers around the world better products and services while maintaining compliance.
— CoinList (@CoinList) November 24, 2022
Crypto blogger Colin Wu previously tweeted to his 245,000 followers that “some members of the community” using CoinList have been unable to withdraw funds for over a week due to maintenance.
CoinList has a $35 million creditor lawsuit against bankrupt cryptocurrency hedge fund Three Arrows Capital, which Wu described in a tweet as a “loss” that likely raised concerns that the company is insolvent or illiquid.
In an effort to allay fears of a bank exodus on other platforms, CoinList explained that it is undergoing an upgrade of its internal systems and a wallet address migration involving “multiple custodians.”
The company cited unexplained “custodial issues” as the reason some cryptocurrencies are “taking longer than expected to migrate” and one of its unnamed custodian partners is suffering from a “outage.” […] non-migration related” on November 23, which affected the tokens on the platform.
Its status page shows “degraded performance” for withdrawals, with four cryptocurrencies unavailable for withdrawals since Nov. 15, and one having delayed deposits since Nov. 16.
“Once again, this is purely a technical issue and not a liquidity crunch,” CoinList said. He said he owns “all user assets dollar for dollar” and said he plans to release confirmation of the reserves.
contacted CoinList for more information, but did not immediately receive a response.
Related: FTX Showcased Why Banks Need to Take Over Cryptocurrency
CoinList said on Nov. 14 that it has nothing to do with the now bankrupt FTX exchange, but users are increasingly nervous about centralized platforms and have rushed to keep their assets safe, as evidenced by a surge in sales reported in mid-November by hardware wallet providers Trezor and Ledger. .
Around the same time, the outflow of bitcoin (BTC) and stablecoins from exchanges reached an all-time high, and a corresponding surge in activity was observed on decentralized exchanges.