Another day in crypto, and a new platform imposing a withdrawal limit to protect “the best interest” of the community. Wyre, a popular crypto payment platform, decided to limit withdrawals from users up to 90% of the funds they hold. This comes right after rumours that the platform could be shutting down its operations. When these rumours spread, users tend to take their funds out, which could have accelerated Wyre’s decision to limit and block withdrawals.
Wyre Limits Users’ Withdrawals of Cryptocurrencies
Wyre, a large crypto payment company, announced on Twitter on January 7 that they are now limiting their withdrawals to no more than 90% of the funds that each customer has on his account. At the same time, there will be some daily limits imposed on those users.
The Tweet published by Wyre reads as follows:
“We are modifying our withdrawal policy. While customers will continue to be able to withdraw their funds, at this time, we are limiting withdrawals to no more than 90% of the funds currently in each customer account, subject to current daily limits.”
The company went on to write that they are acting in the best interest of their community and that this is their top priority. Moreover, they explained that they are also exploring other strategic options in order to navigate the current market environment and deliver on their mission to simplify and revolutionize the global payments ecosystem.
Let’s not forget that multiple companies have been affected by the current bear market in the cryptocurrency industry. When Bitcoin (BTC) reached the top in November 2021 at $69,000 per coin, the market then started moving lower. One of the first large projects to fail was the Terra (LUNA) ecosystem in mid-2022. This pushed virtual currencies lower and created a large sell-off in the market.
At the same time, smaller projects and some companies that were linked to LUNA have also been affected. But the issues continued. The bear trend was very far from reaching a bottom. In November 2022, a year after Bitcoin’s record high, the cryptocurrency exchange FTX collapsed, bringing down many other small companies with it.
The FTT virtual currency imploded and the markets reached their lowest point in years. Bitcoin, for example, fell below $16,000 for a short period of time. Since then, Bitcoin has been traded quite stable between $16,400 and $17,000. This shows that the market is currently accumulating BTC at these current levels, but there could be new companies affected by this long bear trend.
Wyre, for example, is just another firm that has been damaged by a lower interest in digital assets and by the falling prices of virtual currencies. Due to their business model, the company is now forced to block withdrawals and limit them, creating issues and problems for users that held their funds on these platforms.
In recent months, the trend was to move funds from centralized crypto platforms such as exchanges to self-custody wallets. This was one of the best ways for users to avoid losing large amounts of money to companies that were lending funds or that were not solvent.