CoinList is known as a connection platform between potential new projects and users, which has helped many top-tier projects like Casper, Mina or Solana connect with new users. On Nov 16, CoinList announced to suspend withdrawals for FLOW, MINA, ROSE and CFG due to custodian issues. However, until today, Nov 25, 10 days since the announcement of suspending withdrawals, CoinList has not yet reopened withdrawals, raising concerns that the company was having liquidity issues or insolvent.
In response, CoinList had to announce to extend a period of suspension for FLOW, MINA and CFG.
“Our custody partner is undergoing maintenance that is taking longer than expected. Rest assured your funds are safe. We will continue to provide updates as we have them. Thank you for your patience!”
Of course, users cannot put 100% trust in the platform and are concerned that CoinList is in danger of illiquidity due to the impact of the FTX crash. In the collapse of 3AC, CoinList suffered a loss of $35 million.
In 2018, Digital Currency Group (DCG) took part in an A series investment round for CoinList and now it is not clear whether Genesis – a subsidiary of DCG that is currently facing bankruptcy – has any connection with CoinList or not. Coinlist once again confirmed that the reason for withdrawal suspension is due to technical issues, not insolvent, illiquid, or near bankruptcy.
“Once again, this is purely a technical issue, not a liquidity crunch. We hold all user assets dollar for dollar.
Regardless, this is not the quality of service we aspire to, and we apologize for the inconvenience. Proof of Reserves is on our roadmap.”
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