Cryptocurrency Exchange and Initial Coin Offering (ICO) platform CoinList took to Twitter to address “FUD” after a blogger tweeted that users were reporting being unable to withdraw funds for more than a week, sparking concerns that the company was struggling with liquidity or insolvent.
“There’s a lot of FUD going on that we’d like to address head-on,” CoinList said in a Nov. 24 tweet. fiber which stated that the exchange was “not insolvent, illiquid or close to bankruptcy”. However, it said its deposits and withdrawals are being affected by “technical issues”.
2/ We are upgrading our internal accounting systems and migrating wallet addresses involving multiple administrators.
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
Cryptocurrency blogger Colin Wu before he tweeted to his 245,000 followers that “some community members” using CoinList have been unable to withdraw for over a week due to maintenance.
CoinList has $35 million creditor’s claim with failed crypto hedge fund Three Arrows Capital, which Wu said in a tweet was a “loss,” likely raising concerns that the company was insolvent or insolvent.
CoinList is seeking to allay concerns raised by other platforms, explaining that it is undergoing an upgrade of its internal systems and a migration of wallet addresses that involves “multiple administrators.”
The company cited unexplained “custodian issues” as the reason why a selection of cryptocurrencies is “taking longer to migrate than expected,” with one of its unnamed custodians suffering an “outage.” […] non-migration related” on November 23, which impacted the tokens on the platform.
His condition page shows “reduced performance” for withdrawals, with four cryptocurrencies unavailable for withdrawals since November 15 and one having delayed deposits since November 16.
“Again, this is a purely technical issue, not a liquidity crisis,” he told CoinList. It claimed to hold “all user assets dollar for dollar” and noted that it plans to do so publishes its proof of reserves.
Cointelegraph contacted CoinList for more information, but did not immediately receive a response.
CoinList he claimed on Nov. 14 that it had no exposure to the now-defunct FTX exchange, but users are increasingly nervous about centralized platforms and have rushed to ensure safe custody of their assets, as evidenced by increase in sales hardware wallet providers Trezor and Ledger reported in mid-November.