Zipmex, a digital assets exchange based in Singapore, has become the latest firm in the industry to buckle under the bear market pressure. The exchange announced that it is pausing withdrawals from its platform until further notice.
In a tweet, the exchange cited circumstances beyond their control, including market volatility that has resulted in their “key business partners” running into financial difficulties. It added that the measure would help maintain the integrity of the platform.
“Due to a combination of circumstances beyond our control including volatile market conditions, and the resulting financial difficulties of our key business partners, to maintain the integrity of our platform, we would be pausing withdrawals until further notice,” the tweet stated without further elaboration.
Due to a combination of circumstances beyond our control including volatile market conditions, and the resulting financial difficulties of our key business partners, to maintain the integrity of our platform, we would be pausing withdrawals until further notice.
— ZIPMEX (@zipmex) July 20, 2022
Zipmex, which markets itself as Asia’s leading exchange, offers both digital assets spot trading and an interest-bearing account service that offers users up to a 10% annual percentage yield (APY). The exchange also has offices in Thailand, Australia, and Indonesia.
Tech In Asia reports that Zipmex completed an $11 million Series B funding round that saw investors like B Capital, TNB Aura, Bank of Ayudhya’s Krungsri Finnovate, Master Ad, MindWorks Capital, and others participate. Following this, the exchange attracted interest from Coinbase (NASDAQ: COIN), which was reportedly considering acquiring it. However, these plans fell through back in June, with Coinbase opting to make an undisclosed amount of strategic investment in the firm.
Dozens of digital assets firms facing financial troubles
It remains unclear if Coinbase is the Zipmex “key business partner” that has run into financial difficulties, but Coinbase has been showing signs of liquidity troubles. One of the most recent indicators of issues in the U.S.’s biggest exchange was the announcement that it is temporarily shutting down its affiliate marketing campaign just this month.
Similarly, Zipmex is not the only Coinbase-linked exchange that has announced the suspension of withdrawals. Earlier this month, India-based CoinCDX also issued a notice that it had restricted withdrawals to strengthen its compliance and risk framework after an outcry from users.
Additionally, Coinbase has also been among firms that have laid off their employee headcount. The exchange let go of about 18% of its employees last month.
Many firms in the digital asset industry have been hit by trying times as the price of assets in the market has been in a downward spiral. Several of them, including Voyager, Vauld, Celcius, and 3AC, has filed for bankruptcy, going down with billions of investors’ funds.
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