Changpeng “CZ” Zhao, co-founder and CEO of Binance, has issued a warning to investors in the crypto space amid the persistent pattern of suspended withdrawals that several crypto entities have resorted to, as the high volatility that characterizes the current Crypto Winter is hitting harder than space can handle.
CZ advised investors against choosing exchanges that need funds to survive
CZ had taken to Twitter to comment on reports that Southeast Asian cryptocurrency exchange Zipmex had suspended withdrawals until further notice, citing “volatile market conditions”.
Citing the report, CZ said, “another bites the dust,” further advising his followers to ensure they are making the right choice when opting for a cryptocurrency exchange. He noted that investors should avoid exchanges that would require the help of venture capital funds to “survive”.
Singapore based exchange Zipmex announcement that it had made the difficult decision to suspend withdrawals on its platform, citing circumstances beyond its control, including financial difficulties on the part of its main trading partners.
Taking to Twitter, the Zipmex team said: “Due to a combination of circumstances beyond our control, including volatile market conditions and the resulting financial difficulties for our major trading partners, in order to maintain the integrity of our platform, we would suspend withdrawals until later. to remark.”
Amid Wave of Suspended Withdrawals, Community Slowly Loses Trust in Crypto Entities
Zipmex is the latest to resort to suspended withdrawals due to the chilling effects of Crypto Winter. Late last month, crypto lender and futures exchange platform Coinflex announced that they would suspend customer withdrawals due to “extreme market conditions”. […] and uncertainty involving consideration. Platform users have since blocked their funds on the platform.
Around the time Coinflex suspended withdrawals, another India-domiciled exchange, CoinDCX decided to halt deposits and withdrawals for several users due to compliance and risk requirements. This came just two weeks after crypto lending giant Celsius Network revealed on June 13 that it would halt trades, withdrawals and transfers between accounts on its platform, citing “extreme market conditions “.
Additionally, another Singapore-based crypto platform, Vauld, blocked customers from their funds by suspending withdrawals “with immediate effect,” days after it cut its workforce by 30%. Additionally, crypto exchange Voyager Digital took the same direction by suspending withdrawals on its platform on July 1 due to its exposure to 3AC.
The crypto community is slowly losing faith in centralized exchanges and lending entities in the space amid this disturbing wave. CZ’s advice appears to have come at a reasonable time, and with the Crypto Winter showing no signs of abating, the community is wondering which entity will be impacted next.