CoinLoan, a crypto-backed lending platform, said it has temporarily lowered its withdrawal limits due to current market woes.
The crypto lending platform has joined companies that have restricted withdrawals due to market woes. Many platforms such as Celsius, Voyager, BlockFi and Three Arrows Capital have made similar moves before.
“The interest we have paid on interest accounts is obtained by giving over-collateralized loans to other platform users. Therefore, in some cases, the estimated date of complete withdrawal of assets from interest accounts precedes rather than after closing the loan.
For this reason, the company announced that it has set a withdrawal limit “to balance fund flows and prevent liquidity-induced disruptions”.
After the announcement, customers will be able to withdraw a maximum of $5,000 every 24 hours.
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