CoinList, an ICO platform that performs sales of digital tokens for crypto companies, has announced to its clients that the inability to withdraw from its platform is due to technical issues from the company and not due to a liquidity crunch as rumored.
CoinList stated via Twitter that customers are unable to deposit or withdraw due to technical errors as a result of an upgrade of its internal ledger system and migration of wallets that have different custodians. The firm gave its customers an assurance that it is not at any risk of going bankrupt or illiquid.
4/ Once again, this is purely a technical issue, not a liquidity crunch. We hold all user assets dollar for dollar.
Regardless, this is not the quality of service we aspire to, and we apologize for the inconvenience. Proof of Reserves is on our roadmap.
More updates soon 🙏
— CoinList (@CoinList) November 24, 2022
Colin Wu, a Chinese reporter, had tweeted that some of his Twitter followers were unable to process withdrawals of their tokens from the CoinList platform for more than a week due to maintenance of its custody partners.
Some community members reported that Coinlist, the largest cryptocurrency crowdfunding platform, was unable to withdraw coins. The official reason is that the custody partner is undergoing maintenance, but it has lasted for more than a week. Coinlist incurs $35M loss in 3AC crash
— Wu Blockchain (@WuBlockchain) November 24, 2022
CoinList, however, stated that it will continue to maintain compliance with regulations in the industry while providing better products and services to its customers.
The FUD of CoinList going bankrupt was a result of its loss of $35 million in Three Arrow Capital (3AC), a crypto hedge fund based in Singapore, and the sudden collapse of the FTX exchange.
Before the recent announcement, CoinList had informed its users that their holdings are safe because its business methods are different from those of the FTX exchange, which at the time was having liquidity problems.
CoinList invested $35M With Three Arrow Capital
CoinList is a digital asset management company for popular crypto assets like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) as well as more recent tokens like CSPR, MINA, and FLOW. CoinList also provides an easy and quick purchase and selling facility for its users. CoinList Pro is a crypto spot exchange that claims to have all the features that experienced traders demand.
It was reported that 3AC owes about $2.8 billion in claims to several digital firms such as CoinList, Voyager, Blockchain Access UK Ltd, and Matrix Port Technologies.
I would like to share my key takeaways from this morning's liquidator meeting. A 2 hour meeting distilled into a short and sweet tweet thread 🧵
— Soldman Gachs ⌐◨-◨ (@DrSoldmanGachs) July 19, 2022
According to reports, 3AC had assets worth about $6 billion and liabilities at about $3 billion at the end of last year. The 3AC assets are made up of bank account balances, direct cryptocurrency holdings, project-related underlying equity, and NFTs.
3AC went illiquid as a result of the decline in the value of digital assets like BTC and other currencies. Numerous digital coins lost their footing and dropped below expectations, which in turn sparked significant sell-offs in all markets.
