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Zipmex opens crypto withdrawals after pause due to market volatility

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Zipmex opens crypto withdrawals after pause due to market volatility

The recent crypto winter has thrown some crypto firms into insolvency. Additionally, the collapse of the algorithmic stablecoin Terra and its native token, LUNA, contributed to the devastating effect of the downtrend. As a result, almost every asset in the crypto space has seen a massive drop in their prices and values. The whole event brought billions of dollars to investors.

While many companies have been hit by the impact of bear markets, some have felt the brunt more. The majority are crypto credit companies that offer high rates in their services. Therefore, they had to find ways to stay afloat during the raging storm of liquidation.

Some of the troubled companies had to freeze their users’ accounts, preventing them from accessing their funds. This created more tension in the crypto space as some investors began to lose faith in the crypto industry and its long-term potential.

One of the companies that has taken a heavy hit from the downtrend is Zipmex, a Thailand-based cryptocurrency exchange. The company has reportedly decided to allow users to access some of the funds on its platform.

According to report, this would allow BTC and ETH tokens to be withdrawn within days. Additionally, Zipmex gained access to withdrawals of some altcoins last week. These include Cardano (ADA), Solana (SOL) and Ripple (XRP).

Zipmex halted withdrawal from its platform towards the end of July due to volatility in the crypto market. However, the firm mentioned that the platform will remain closed for an indefinite period. He cited his reason as the prevailing downtrend in the market, which is beyond his control.

Zipmex opens crypto withdrawals after pause due to market volatility
Crypto Market Records Significant Uptrend On Daily Chart | Source: Total Crypto Market Cap on TradingView.com

Contrary to many’s expectations, the firm is canceling its trading break on the platform. Users can withdraw certain Bitcoin (BTC) and Ethereum (ETH) tokens. But the period would last from August 11 to August 16. Additionally, withdrawal access is restricted to its Z Wallet customers, who make up around 60% of its customer base.

Zipmex Sort for Crypto Help from Other Organizations

Previously, there had been rumors that Zipmex had private deliberations with several organizations regarding its outstanding liquidity issues. Also, many people believe that some companies offer Zipmex support to survive.

Zipmex has filed numerous bankruptcy petitions. Accordingly, they fell under Section 64 of the Singapore Insolvency, Restructuring and Dissolution Act 2018. The action was intended to deter creditors from filing claims within six months.

Besides Zipmex, other crypto companies suffered the same fate. Three Arrows Capital, an Asia-based crypto lending platform, went bankrupt in June during the downtrend.

The company owes up to $3.5 billion to 27 different industry entities and could not reimburse its users. Finally, she received a winding-up order from a court in the British Virgin Islands.

Featured image from Pixabay, chart from TradingView.com

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