The crypto market is not in its best shape lately. Due to this, many crypto firms and exchanges have either halted transactions or declared bankruptcy. Recently, Southeast Asia-focused crypto exchange Zipmex stated that they have halted withdrawals on their platform.
Crypto market went into a downward ‘tizzy’ after the collapse of two very popular tokens, Luna and TerraUSD. Following the popular crypto lending firm, Celsius Network’s announcement about halting withdrawals, the market has not recovered since then. Two of the most popular cryptocurrencies, Bitcoin and Ethereum lost more than half of their value in a matter of weeks.
In a tweet yesterday, the company cited “volatile market conditions, and the resulting financial difficulties of our key business partners” as reasons for its decision to suspend withdrawals.
CEO of Zipemex Thailand, Akalarp Yimwilai told an online Livestream yesterday evening that the local affiliate’s difficulties stemmed from problems at Singapore-based Zipmex Global. It is because its partners, including Babel Finance and Celsius, are currently in the midst of liquidity problems.
Now, the firm joins the list of crypto firms that have suspended withdrawals such as Celsius Network and Vault. This leaves the depositors in the lurch and underscores the perils of leveraged bets permeating the industry.
Following this announcement, the company’s native token, ZMT has lost about 90% of the value from its all-time high.
Things don’t look for the crypto market in the future as popular crypto hedge fund Three Arrows Capital recently filed for bankruptcy, making a big blow to the crypto community.