Frequently Asked Questions - June Edition

June 30, 2022
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To our valued Coinchange Community,

Due to recent market volatility, we have received numerous inquiries regarding risk, our earning strategies, our differentiation from other current yield paying platforms, and withdrawal limits. We would like to highlight the most common inquiries below:

Is Coinchange involved in the crypto lending business that affected large companies, such as the Celsius Network and BlockFi?

Absolutely not! Coinchange generates returns from the fees distributed to liquidity providers on decentralized exchanges (protocols), where users come to swap one coin for another through liquidity pools. When the swap occurs, Coinchange provides the other side of the transaction and collects the fees for helping this transaction take place. Coinchange provides liquidity to a diversified number of protocols and pools. The behavior and movement between those protocols and pools (to maximize the fees and minimize risk) is what Coinchange’s technology delivers.

Bitcoin and other cryptocurrencies have experienced volatility and a loss in value. How did this affect Coinchange?

Coinchange does not trade or lend to CeFi counterparties. Coinchange is price agnostic and is not involved in timing the market, nor participates with 3rd party companies that participate in trading activities. Coinchange’s liquidity participation is concentrated in stablecoin pools, meaning there is no exposure to other, more volatile, coins.

Can I withdraw funds from my account?

Yes! You can withdraw funds from your Coinchange account at any time. Coinchange will never withhold your ability to pull funds from your account. Due to recent market volatility, we have reduced our international wire withdrawal fee from $30 to $15. Please note that wire transfers can take up to 24 hours to settle into your bank account.

There has been variation in the payout rates over the past several weeks. What happened?

Coinchange payouts depend on factors directly related to the activities in the protocols and pools where we provide liquidity. The more transactions  that happen within these pools, the higher are the expected payouts. In the past several weeks, Coinchange observed a lower-level of activity with stablecoins because investors have been mainly concerned with more volatile crypto assets such as Bitcoin and Ethereum.

Why does Coinchange not time the market?

During bear markets, it is important to keep one thing in mind: It is time in the market that counts, not timing the market. This is why our yield generating strategies are price agnostic and do not involve timing the market. Our belief and execution in a well-diversified and market-neutral approach has not - and will not - change.

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