Bitcoin Mining Pool Poolin Pauses Withdrawal Amid Liquidity Drain

With the crypto market at its lowest point at the moment and the consequent effect on the crypto service providers, Poolin is among the latest that shows it is feeling the heat. 

In an announcement on its medium account on Monday, the crypto mining pool said it is pausing withdrawal on its wallet, Poolin Wallet.

Per the announcement, several circumstances beyond its control necessitated the new development. Poolin Wallet is currently facing unusual liquidity problems as a result of high demands on withdrawals. 

The team said it would announce a resumption plan in two weeks and assured its community that all assets are safe and its net worth is positive. It further added that the decision is for the benefit of its users as it maintains close communication with its community.

During this period, the firm is searching for feasible solutions to its liquidity crisis and would furnish its community with details within the week.

Aside from withdrawals, the blockchain-based wallet also paused flash trades, as well as internal transfers within the Poolin system which took effect from Monday.

In a bid to accomplish the goal of stabilizing operation and liquidity, the crypto mining pool said in a separate post that it intends to waive fees. Users mining Bitcoin (BTC) and Ethereum (ETH) on Poolin will benefit from the Zero fee promotions starting from September 8 to December 7 this year.

Also, there will be a one-year zero-fee offer for customers with more than 1 BTC or 5 ETH assets in their pool balance or account. This will begin on September 8 and run through next year. 

Crypto firms pause withdrawal as crypto Winter continues

As the crypto winter continues, it remains to be seen how firms react to the heat of the wave. Several crypto firms in response to the heat, have resulted in halting withdrawals on their platform. 

The Singaporean crypto trading and lending platform Vauld recently announced it is restricting withdrawals for its users.  Crypto broker Voyager Digital also announced its temporary suspension of trade, deposits, and withdrawal on its platform in July. 

The lender has since filed for bankruptcy protection and recently got approval from the court to pay $1.6 million in bonuses to key staff after the move was initially opposed by its creditors.