CoinRecord addresses ‘FUD’ on withdrawals, cites technical issues for delays

Cryptocurrency trade and Initial Coin Offering (ICO) platform CoinRecord took to Twitter to handle “FUD” after a blogger tweeted that customers reported being unable to withdraw funds for over every week, sparking fears the corporate was having liquidity issues or w bancrupt.

“There is numerous FUD going round that we want to deal with head-on,” CoinRecord stated in a Nov. 24 Twitter thread that acknowledged the trade is “not bancrupt, illiquid, or close to chapter.” It stated nevertheless that its deposits and withdrawals are affected by “technical issues.”

Crypto-focused blogger Colin Wu had earlier tweeted to his 245,000 followers that “some group members” utilizing CoinRecord have been unable to withdraw for over every week resulting from upkeep.

CoinRecord has a $35 million creditor declare with bankrupt crypto hedge fund Three Arrows Capital which Wu stated in his tweet was a “loss,” that probably triggered issues the corporate was bancrupt or illiquid.

Looking to dampen fears which have seen financial institution runs on different platforms, CoinRecord defined that an improve to its inner methods and a migration of pockets addresses that entails “a number of custodians” is being undertaken.

The firm cited unexplained “custodian issues” as the rationale a number of cryptocurrencies “are taking longer than anticipated emigrate” with one in every of its unnamed custodian companions affected by an “outage […] unrelated to the migration” on Nov. 23 which impacted tokens on the platform.

Its standing web page exhibits “degraded efficiency” for withdrawals, with 4 cryptocurrencies unavailable for withdrawal since Nov. 15, and one experiencing delayed deposits since Nov. 16.

“Once once more, that is purely a technical concern, not a liquidity crunch,” CoinRecord stated. It claimed to carry “all consumer belongings greenback for greenback” and famous it plans to publish its proof of reserves.

Cointelegraph has contacted CoinRecord for extra data however didn’t instantly obtain a response.

Related: FTX illustrated why banks must take over cryptocurrency

CoinRecord claimed on Nov. 14 that it had no publicity to the now-bankrupt FTX trade, however customers are more and more nervous about centralized platforms and have rushed to make sure secure custody of their belongings as evidenced by the surge in gross sales reported in mid-November by {hardware} pockets suppliers Trezor and Ledger.

Around the identical time, outflows of Bitcoin (BTC) and stablecoins from exchanges hit historic highs and a corresponding uptick in exercise was seen on decentralized exchanges.