Bitvavo will pay $296 million in locked DCG assets upfront

Bitvavo will pay $296 million in locked DCG assets upfront

The Digital Asset Group (DCG), which manages $296.7 million (280 million euros) in deposits and digital assets of off-chain staking services crypto exchange Bitvavo, and its affiliated institutions have suspended refunds, citing liquidity issues amid the bear market. However, Bitvavo has announced that it will pre-finance locked assets and aim to prevent DCG-induced service disruption for users.

A chronic liquidity crisis is expected to unfold in exchanges as users explore individual custodian wallet options as a way to protect their funds. DCG has disclosed its liquidity issues as it temporarily stops users from withdrawing their funds by suspending refunds. However, Bitvavo has decided to pre-finance locked assets to ensure that none of its users suffer DCG liquidity issues.

“The current situation at DCG has not adversely affected Bitvavo,” the company said in the announcement, as it does not guarantee service interruptions to its users. According to Bitvavo, DCG has plans to refund outstanding deposits over time.

Moreover, Bitvavo argued that DCG’s debt does not have a negative impact on its day-to-day operations, as the company has made profits from the start and is in a sound financial position.

Bitvavo currently manages around $1.7 billion worth of deposits and digital assets.

On the other hand, Binance, which has the highest trading volume in the world, experienced a liquidity shortage due to the big ten outflows in the stock market.

Nansen technician Andrew Thurman said that the liquidity shortage may be due to the fact that the big players in the market have withdrawn from the stock market.

Soruce :

Leave a comment

SMM Panel PDF Kitap indir