Bitcoin and altcoin exchange AEX, according to its latest announcement, is restricting withdrawals for a certain period of time. This situation caused investors to panic. The exchange said the factor behind this decision was to “avoid panic shots”. Here are the details…
Cryptocurrency exchange has stopped withdrawals in altcoin projects
AEX started its announcement by first mentioning “the announcement about the delay in token withdrawal on June 14”. According to the exchange, their main purpose was to explain to customers the reasons for the platform and address their concerns. However, this has caused some misinterpretations and speculation. It also caused some customers to panic and withdraw money. Therefore, the exchange said, “we need to adjust our market strategy.” He noted the following developments behind the delay of withdrawal:
- USDT/USDC stored by AEX for mining on the Curve platform was replaced by UST after the collapse of UST. It resulted in the loss of short-term liquidity assets.
- Some third-party quantitative institutions have a certain degree of net worth under extreme market conditions. While the majority have signed capital reserve contracts, the contracts are usually signed for one year and are not expired. AEX unilaterally breaks the contract and withdraws the assets.
- Due to the downturn in the economic environment, customers’ repayment rate was delayed in the mining machinery allocation business and the pledged loan business.
- Institutions such as LUNA, CEL and 3AC collapsed, causing market panic and many customers to exit the market.
- Temporary malfunction of the multi-signature server caused a delay in the withdrawal of coins on June 14, causing market concerns.
According to the disclosure, AEX normally allocates assets based on 20 percent of short-term assets, 30 percent of medium-term assets and 50 percent of long-term assets. As we reported as Kriptokoin.com, LUNA crashed in mid-May. Since then, the total market value of AEX’s various asset exits (including the withdrawal of cooperative institutions) has reached 450 million USDT. The above events quickly exhausted AEX’s short-term liquidity holdings and some medium-term holdings, raising the question of withdrawal delays.
Which altcoins were affected?
Due to the above issues, the exchange announced that it is suspending withdrawals for certain coins for 36 hours. The stock market states that the factor behind these decisions is “withdrawal of money with unnecessary panic; “to avoid causing liquidity pressure and unnecessary market sentiment,” he said. The coins that cannot be withdrawn for 36 hours are as follows:
- Bitcoin (BTC),
- Ethereum (ETH),
- Litecoin (LTC),
- EOS (EOS),
- Polkadot (DOT),
- Bitcoin Cash (BCH),
- Dogecoin (DOGE),
- Solana ( SOL),
- Filecoin (FIL),
- Tether (USDT),
- USD Coin (USDC)
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