Zipmex opens crypto withdrawals after hiatus due to volatile markets
The recent crypto winter put some crypto firms into insolvency. Also, the collapse of the Terra algorithmic stablecoin and its native token, LUNA, helped with the devastating effect of the bearish trend. As a result, almost all of the assets in the crypto space experienced a massive drop in prices and values. The combined events brought in billions of dollars from investors.
Although many businesses were affected by the impact of the bearish markets, some felt more of the blow. The majority are crypto lending companies that offer high prices for their services. Therefore, they had to find ways to stay afloat through the raging liquidation storm.
Some of the struggling companies had to freeze users’ accounts, making it impossible for them to access their money. This created more excitement in the crypto space as some investors began to lose faith in the crypto industry and its long-term potential.
One of the firms that took a hard hit from the bearish trend is Zipmex, a cryptocurrency exchange based in Thailand. The company is reportedly moving to give users access to some of its platform assets.
According to the report, it will make it possible to withdraw BTC and ETH tokens within a few days. Zipmex also had access to some altcoins’ withdrawals last week. These include Cardano (ADA), Solana (SOL) and Ripple (XRP).
Zipmex stopped its withdrawal from its platform towards the end of July due to the volatility of the crypto market. However, the firm mentioned that the platform will remain closed for an unknown period of time. It cited the reason as the prevailing bearish market trend, which is beyond its control.
Contrary to the expectations of many, the firm is reversing its transaction pause on the platform. Users can withdraw some Bitcoin (BTC) tokens and Ethereum (ETH). But the period will last from August 11 to August 16. Withdrawal access is also only for their Z Wallet customers, which make up about 60% of their customer base.
Zipmex is sorting for help with crypto from other organizations
Until now, there have been rumors that Zipmex is having private discussions with several organizations regarding its ongoing liquidity issues. Many also believe that some firms offer Zipmex help to survive.
Zipmex dropped a number of applications for bankruptcy. As a result, they were under section 64 of Singapore’s Insolvency, Restructuring and Dissolvency Act 2018. The act aimed to deter creditors from making claims within six months.
Besides Zipmex, other crypto firms suffered the same fate. Three Arrows Capital, an Asian-based crypto lending platform, went bankrupt in June during the bearish trend.
The firm is said to owe up to $3.5 billion to 27 different entities in the industry and was unable to repay users. Finally, it received a winding-up order from a court in the British Virgin Islands.
Featured image from Pixabay, chart from TradingView.com
