Crypto Lender SALT Halts Withdrawals After Major Exchanges Collapse
Two of the largest crypto exchanges in the world have collapsed in the last 48 hours, leading to major chaos in the crypto market. As if things couldn’t get any worse, popular cryptocurrency lending platform SALT has halted withdrawals due to ongoing technical difficulties with trading tokens on certain exchanges. The bitcoin profit makes trading bitcoin easier than it’s ever been. If this sounds confusing to you, don’t worry — we’re here to help! In this article, we’ll tell you exactly what happened and give you our recommended next steps to take during this tumultuous time.
The news of the crypto exchanges collapsing came as a shock to the community
This past week, the cryptocurrency market has been in a panic as many exchanges that trade digital assets like Bitcoin and Ethereum have been hacked. The most notable hack so far was Bithumb, which resulted in the theft of billions of won from Korean accounts. As a result, major Korean exchanges were forced to close their doors for trading on Wednesday and Thursday. One of those exchanges is Bithumb’s rival Coinone, which also announced that it would not be resuming services before next Monday. Another South Korean exchange known as Youbit also shut down after being hacked twice this year. All told, it’s estimated that about $10 billion in value has been lost across these various hacks.
SALT was one of the many affected by the collapse
A quick Google search of cryptocurrency hacks will show you a list with over 800 entries. The most recent, and possibly the most significant, is the collapse of some major cryptocurrency exchanges. This has left many companies across the world scrambling to figure out what to do with their holdings. One company that’s been very affected by this is a crypto lender called SALT.
SALT was one of the many companies who were unable to withdraw their funds from various exchanges due to lack of liquidity or just outright closure. This is a big problem for them because they provide loans backed by the holdings in your account and not having those funds available could mean some people are unable to take out loans for school or other purposes that require collateral.
SALT has since halted all withdrawals in order to protect their customers
The cryptocurrency market is unstable and unpredictable. As of November 20, 2018, the total market value had fallen by a whopping $12 billion in less than one hour. This volatility has created fear and uncertainty among many crypto investors and traders. In response to this extreme fluctuation, crypto lender SALT halts withdrawals after major exchanges collapse.
A major exchange that has halted withdrawals due to instability is Binance. The company announced on their website that they are monitoring the situation closely and will resume withdrawals as soon as possible to ensure the safety of their customers funds. Other exchanges including Coinbase, Kraken, Poloniex and Bitfinex have also been impacted by the sudden drop in prices.
This has caused a lot of frustration among the crypto community
The increase in price of Bitcoin to over $16,000 has lead to an increase in interest and demand for crypto assets. With the increased demand, there have been increased opportunities for fraud. One such incident was when Bithumb, a major South Korean cryptocurrency exchange was hacked leading to the loss of billions of dollars worth of bitcoin and ether. This is the second time Bithumb has been hacked this year. The hackers were able to access one hot wallet on the site with over 2 million bitcoins (valued at approximately $18 billion). In response, many are calling for a boycott against SALT as they are a cryptocurrency lending platform that allows you to use your coins as collateral for loans in traditional currencies such as USD or EUR.
It’s no secret that crypto investors have been struggling with the pain of seeing their assets’ values plummet in the past few months. In fact, CNBC recently reported that Bitcoin has lost a whopping $122 billion since its December high. But there may be some relief on the horizon for these struggling investors. One of the world’s most well-known crypto lenders, Salt Lending (SALT), announced today that it will now allow customers to withdraw up to 50% of their account balances in cash, regardless of whether they are paying back loans or not. The company plans to offer this service as a means of providing relief to those who have seen their investments in Bitcoin and other cryptocurrencies dwindle over time.