Key Takeaways:
- Pollin to freeze its Pool Account and Poolin Wallet as payout withdrawal options for miners.
- Poolin would also switch its payout method to bitcoin miners from Full-Pay-Per-Share (FPPS) to Pay-Per-Last-N-Shares (PPLNS).
Leading crypto mining platform Poolin announced that it would be suspended withdrawals citing “Liquidity issues.” PoolinWallet plans to pause all withdrawals, flash trades, and internal transfers within Poolin systems from 10:00 PM, GMT+8, September 5, 2022″, the announcement reads.
PoolinWallet had further added that it is actively pursuing “strategic solutions with multiple stakeholders.” As part of the latest development, Pollen would be freezing its Pool Account and Poolin Wallet as payout withdrawal options for miners.
The Pool Account now only supports the withdrawal and storage of current assets, while new assets can not be deposited into it.
The latest move comes amidst increasing customer complaints that withdrawals were slow on the platform.
To help tackle liquidity issues, Poolin had said it would slash certain fees and switch its payout method to bitcoin miners from Full-Pay-Per-Share (FPPS) to Pay-Per-Last-N-Shares (PPLNS).
Further in its announcement, the mining pool added that the move was necessary to preserve its assets and stabilize liquidity and operations amid the “dull crypto market.”
To compensate, Poolin, in a separate post, has now announced a free waiver for bitcoin and ether (ETH) mining until December 7, starting September 8.
The offer can also be extended to one year for clients holding over 1 BTC or 5 ETH in their pool accounts.
The crypto community is widely speculating the reason behind the Pollin-the Chinese mining platform’s alleged “liquidity issues.”
According to analyst Dylan LeClair, there are currently “17.6k BTC currently in the known Poolin bitcoin wallet.”
According to BTC.com data, Poolin has mined over 10% (1,381) of all bitcoin blocks over the past three months, converting to 8,361 BTC ($166.4 million at current prices). The pool is currently mining around 3.6% of all ether blocks.
Poolin noted it would take a snapshot of the remaining bitcoin and ether balances within its mining pools to determine what’s owed to miners. Poolin is, however, not the first crypto firm in 2022 to give into market conditions and suspend withdrawals.
Voyager Digital, Three Arrows Capital, and Celsius, are just some of the many big names in the industry who have recently suspended withdrawals and even filed for bankruptcy citing “market volatility.”
