The contagion of the FTX collapse runs deep. After some funds came out publicly and admitted they had exposure to FTX with their funds, it led to the more and more companies pausing deposits & withdrawals immediately.
We take a look at several cryptocurrency companies that froze withdrawals;
Salt Lending
SALT is a lending platform that gives crypto holders access to liquidity without them having to sell their tokens through a fully-collateralized debt vehicle. The company suspended all withdrawals on the 14th of November 2022.
AAX
AAX is a cryptocurrency exchange offering spot, futures and savings products across a wide variety of digital assets, including Bitcoin, Ethereum and others. The company suspended all withdrawals on the 13th of November 2022.
Liquid Global
Liquid Global offers trading services for major cryptocurrencies such as Bitcoin and Ethereum against fiat currency pairs in Japanese yen, US, Singapore and Australian dollar and Euro. The company suspended all withdrawals on the 14th of November 2022.
Digital Surge
Digital Surge is a popular Australian exchange that houses over 200+ cryptos with AUD. The company suspended all withdrawals on the 15th of November 2022.
If these examples teach us anything, it is that now is not the time to have all of your assets on Centralized exchanges. The risk is probably too much and we have to sit this out.
Why are they “pausing” withdrawals?
This is because they are probably not solvent to begin with. It is a last attempt hoping for a miracle that is going to turn around crypto prices. But don’t fall for soft-spoken ‘actions’ and take precaution and action.
Which companies could be next?
If we take a look at the some other projects directly affiliated with FTX, we can see more and more risk. If you have funds in any of these protocols/companies, you best take your precautions. It is only a matter of time before we will see new dominoes fall.
Rise of Self Custody Wallets
The last days were all time highs for Ledger sales. Be sure to have a hard wallet and know that you can trade in DeFi the ‘same’ way you can trade on CeFi.
