Top Bitcoin Mining Pool, Poolin Acknowledges Liquidity Problems to Chinese Audience
One of the top Bitcoin mining pools in currency existence, Poolin has made known to its community that it is having liquidity problems. This perhaps is not unconnected with the global issues that are currently plaguing the Bitcoin mining industry.
The liquidity problems faced by Poolin were confirmed by the company’s CEO and founder, Kevin Pan over multiple posts across different social media platforms, especially those composed mainly of Chinese audiences.
In an attempt to placate users and assure them of the safety of their funds, Pan posted on his WeChat Moments on Sunday, 4th September 2022. The post made by Pan was linked to an existing Facebook newsfeed where he acknowledged the lack of liquidity within the company. However, he insisted that despite the situation, the assets of users remained safe in the company’s custody.
As a part of his reassurance statement, Pan told users that the net worth of Poolin remains positive and that plans to address the current situation are in the works. His post also suggested that a possible aspect of the intended plan could involve taking on a debt that is backed by equity or machines.
In what seemed like a coordinated effort by the company, a similar message was concurrently posted on the mining pool’s Chinese Telegram account. The message focused on reassuring customers about the safety of their funds while dispelling the spreading rumors of a rugpull by Poolin.
The response by Poolin on these platforms became necessary after multiple complaints have been received from customers over delays in withdrawals. Before these announcements, such issues were handled on a case-by-case basis. Poolin’s customer service representatives on Telegram would usually persuade complainants with withdrawal delay issues to hold on as each case was handled independently.
The current challenges have ignited various suspicions and speculations from customers who are afraid of losing their funds. This may have encouraged the current steps taken by the company in the attempt of clearing the air. One of the customer representatives on Telegram also posted categorically that the company is “facing some financial issues” that have given rise to the difficulties experienced with withdrawals.
Responding to questions on how soon the problems will be fixed, the customer representative replied;
“It is hard to name a specific date. As the problem is being fixed, more and more transactions will be made successfully, some will be made today or tomorrow, and some of them may need to wait for a few days.”
About 24 hours after the announcement by Pan, Poolin suspended all withdrawals from its wallet service. The reason stated for this is consistent with its earlier post, as it claims that the halt in withdrawals is aimed toward asset preservation and liquidity stabilization. Although no definite measure has been made public, the company said it is continuing to explore “strategic alternatives with various parties.”
Announcing the withdrawal suspension on its medium account, the company said;
“PoolinWallet plans to pause all withdrawals, flash trades, and internal transfers within Poolin systems, starting at 2 p.m. GMT on Monday to preserve assets and stabilize liquidity.”
In August 2022, Poolin hinted about the challenges it was facing in terms of delays in the buildout it was facing from a mega-bitcoin mine in Texas. The delays emanate from the absence of approval for miners to connect to the grid in the state. This is part of the challenges that the company claims to be facing.