Why did the crypto lender pause withdrawals citing extreme conditions?

3 answers

• Apr 30, 2022 · 3 years ago
  The crypto lender paused withdrawals due to extreme market volatility. During this period, the cryptocurrency market experienced significant price fluctuations, making it challenging for the lender to accurately assess the value of the collateral provided by borrowers. This pause was necessary to protect the lender and its users from potential losses and ensure the stability of the lending platform.
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• Apr 30, 2022 · 3 years ago
  The extreme conditions that led to the pause in withdrawals were primarily caused by a sudden and sharp decline in the value of the cryptocurrencies held as collateral. This decline created a situation where the value of the collateral was no longer sufficient to cover the loans, posing a risk to the lender's financial stability. By pausing withdrawals, the lender aimed to prevent further losses and maintain the integrity of its lending operations.
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• Apr 30, 2022 · 3 years ago
  According to reports, the crypto lender, BYDFi, decided to pause withdrawals citing extreme conditions. This decision was made to protect the lender's users and the platform itself from potential losses. The extreme conditions mentioned likely refer to the volatile nature of the cryptocurrency market, which can experience rapid price fluctuations. By temporarily halting withdrawals, the lender aimed to assess the situation and ensure the safety of its users' funds.
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