CoinList denies liquidity problems amid market FUD

The platform for conducting token sales and the crypto exchange CoinList said there were no liquidity problems. All reports online about withdrawal issues were described by the platform as the manifestation of FUD.

1/ There is a lot of FUD going around that we would like to address head on.

CoinList is not insolvent, illiquid, or near bankruptcy. We are experiencing technical issues that are affecting deposits and withdrawals.

— CoinList (@CoinList) November 24, 2022

On November 15, CoinList warned about suspending withdrawals and deposits of Flow (FLOW), Mina Protocol (MINA), Oasis Network (ROSE) and Centrifuge (CFG), citing extended maintenance by a third-party custodial service. A week later, on November 23, the platform announced the resumption of operations with ROSE.

Journalist noted that users cannot withdraw a broader range of coins than the company claimed. CoinList’s custodial partners are Anchorage, BitGo, Gemini Custody and Silvergate Bank.

Founder and CEO Greg Osuri of Akash Network said that he could not redeem the wrapped version of Bitcoin (WBTC) for the underlying asset on the platform.

I’m unable to redeem $WBTC to $BTC on @CoinList.

CoinList had significant exposure to 3AC and possibly more.

Getting bad vibes. A reminder to please withdraw your funds from centralized exchanges. pic.twitter.com/W8SstjIJBO

— Greg Osuri (@gregosuri) November 23, 2022

Head of Digital Opportunities Group Philip Moran confirmed that users report a prolonged withdrawal wait. He also reminded that the platform is a popular gateway for WBTC among retail investors.

«CoinList is not insolvent, illiquid, or close to bankruptcy. We are facing technical problems that affect deposits and withdrawals. We are upgrading our internal accounting systems and migrating wallet addresses with the participation of multiple custodians», the platform emphasized.

According to the exchange’s statement, one of the custodians experienced an outage not related to migration, which affected CoinList’s assets. The company assured that it holds all user funds on a dollar-for-dollar basis, and the disclosure of reserves is included in the project’s roadmap.

Colin Wu, like several Twitter commentators, noted that CoinList is among the creditors of the collapsed hedge fund Three Arrows Capital. The entity owed the platform about ~$35 million.

He also pointed out that in 2018, Digital Currency Group led a Series A round for the company of $9.2 million. Whether the exchange partner, the Genesis platform from Barry Silbert’s group, is on the verge of bankruptcy, is unknown.

According to CoinGecko, the last 24 hours trading volume on CoinList jumped by 383% to $1.87 million. The platform lists 47 tokens, forming 94 trading pairs. The most popular was FLOW/USDT with a trading volume of around $200,000 per day. The token price over this period fell by 4.6%, while over the week quotes lost 6%.

CoinList, originally focused on token sales, launched a cryptocurrency exchange in 2020.

In October 2021, following a $100 million financing round, the company’s valuation reached $1.5 billion.

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