Suspension of Withdrawals: Poolin Brings in IOU Tokens to Mitigate the Impact
The company said it is exploring multiple options, including new investments and asset liquidation, to solve liquidity issues. Poolin, the embattled crypto mining pool service provider, will offer freshly-minted IOU tokens to its users whose assets are frozen after the platform suspended withdrawals last week. The distribution of IOU tokens will be made today, the 15th of September.
The IOUs will be minted under the ERC-20 protocol on Ethereum, the China-based company said in an official statement on its website. Last week, the firm suspended withdrawals, flash trade, and internal transfers in the face of mass withdrawals threatening to wipe off liquidity and disrupt operations. It said that extreme step was taken to preserve liquidity and work towards finding a solution to the liquidity crisis. The company also introduced two zero-fee mining schemes to encourage users.
Source
@CryptoWorldAnalysis
