Chinese crypto investors faced difficulties withdrawing funds and disruptions at centralized exchanges. Some members of the community urged to withdraw coins held on the exchanges and close their accounts. Local journalist Colin Wu reported this.
Breaking: On Sep 6th, many exchanges in China experienced difficulties in withdrawing coins and shutdowns. Chinese community is launching a «coin withdrawal campaign», calling to withdraw all USDT and crypto in the exchange and delete their accounts. pic.twitter.com/JwUzRFbqXx
— Colin Wu（WuBlockchain） (@WuBlockchain) September 7, 2020
Wu presented charts from the analytics service Cryptoquant. Based on them, the journalist advanced the hypothesis that many users took advantage of Ethereum’s sharp price pullback to buy it and move it to a DEX for use in yield farming. The data indicate a reduction in the balances of the second-largest cryptocurrency on centralized exchanges.
ETH balances on the largest cryptocurrency exchanges. Source: Cryptoquant.
The expert also noted that centralized exchanges reacted to the campaign by listing DeFi tokens. He believes the platforms intend to take advantage of the hype around yield farming.
The «withdrawal movement» is widely spread, but the actual impact is uncertain. Exchanges are also starting to defend, such as crazy listing of DeFi coins to make users to gamble in the secondary market, and helping users with yield farming. pic.twitter.com/ichQNaSHtN
— Colin Wu（WuBlockchain） (@WuBlockchain) September 7, 2020
On January 3, 2019, the global Proof of Keys campaign took place, urging users to withdraw their funds from Bitcoin exchanges. The initiative exposed problems at several major platforms.
Earlier, in August, three residents of China created a fraudulent scheme after losses from investments in dubious crypto projects.
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