Mining pool Poolin pauses bitcoin withdrawals

Last Updated: 6 September 2022

PoolinWallet (temporarily) suspends all withdrawals. The wallet service of one of the largest bitcoin mining pools in the world is trying to stabilise liquidity in this way.

Pause

The company wrote this in a press release last Monday. They are also going to explore “strategic alternatives with various parties”.

A bitcoin mining pool is a kind of software tool which individual bitcoin miners can join. They pool computing power, and then divide the profits between them proportionately. This can be very beneficial for smaller miners, as it allows them to hedge against the risk of ‘bad luck’.

On Sunday, the company’s CEO and founder, Kevin Pan, said Poolin was facing liquidity problems. They did assure users that the assets were safe. There have reportedly been complaints going around since August that withdrawals were slow.

On Medium, the company writes:

“PoolinWallet plans to pause all withdrawals, flash transactions and internal transfers within Poolin systems from Monday 14:00 GMT to preserve assets and stabilise liquidity.”

The hope is that a “viable” solution will be found within a week. It could even mean taking on debt.

Zero fees

A separate message on Poolin’s website states that the company will set bitcoin and ethermining fees to zero from September 8 to December 7. This will then be the case for 12 months for users with more than 1 BTC or 5 ETH in their Poolin balance or Poolin account.

It seems to be a way Poolin is building in to encourage customers to keep some bitcoin in the PoolinWallet.

Just yesterday, Poolin sent 4,400 BTC to Binance. Whether this is related to this case is not known.

Author

  • I first came into contact with Bitcoin in 2017 - and since then, the topic of cryptocurrencies has never left me. For this reason, I have also made BTC & Co. part of my profession and write as a freelance author for crypto publications.

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