Singapore-based Zipmex Exchange Has Paused Withdrawals

Zipmex becomes yet another cryptocurrency company that is troubled by the current market conditions. Zipmex, a Singapore-based cryptocurrency exchange that operates in Thailand, Indonesia, and Australia, has released an official statement that the company will be pausing withdrawals. 

The message below was announced from the Zipmex Twitter account explaining the current situation but the response from the community was anything but positive. Many accounts expressed concerns for their funds, regret for staking with Zipmex, and whether or not the statement from the exchange is true.

Priding itself as “Asia’s leading digital assets exchange,” Zipmex has just joined a list of several other cryptocurrency companies that are suffering from current market conditions. Some of these companies include: Three Arrows Capital, BlockFi, Celsius, Babel Finance, and Vauld. Coincidentally, Vauld is another Singapore-based crypto platform that has suspended withdrawals and deposits for its clients due to volatile market conditions.

According to CoinMarketCap, Zimpex has had a trading volume of $5.4 million in the past 24 hours. In August 2021, their estimated overall gross volume since launching in 2019 was at the $1 billion mark along with a user base of around 200,000 clients.

More Problems for Zipmex? 

This news comes as another major blow to Zipmex investors and users because Coinbase was in discussions for acquiring Zipmex a month ago. However, on June 9th both parties decided that Coinbase will instead be an investor. Some rumors stated that this was due to the financial problems occurring within the exchange.

CEO and co-founder of Zipmex, Marcus Lim, has claimed that the exchange is not in trouble and stated that the decision by Coinbase to become an investor was a great step and will form an interesting partnership. 

“The acquisition fell through due to market conditions. They have pulled out in many countries around the world such as Turkey and in Latin America. Coinbase is a great strategic partner to the business,” said Lim.

While the company is allegedly preparing to raise more funds in its Series B funding round, which could value the company as high as $400 million, more negative developments are possible before funding is secured.