The cryptocurrency agency – Juno – suggested its customers to withdraw their belongings and retailer them in self-custody wallets or promote their holdings for money due to “uncertainty” with its companion.
The corporate plans to resolve the problems by discovering a brand new affiliate.
A Warning Earlier than the Storm?
In a current Twitter thread, Juno revealed that its custody companion has been experiencing sure issues. As such, the entity briefly halted cryptocurrency purchases on its platform and auto-converted the stablecoins – USDC, USDT, mUSDC – to USD.
It additionally inspired clients to withdraw their ownings and switch them into self-custody wallets as a safety measure. The agency added that purchasers might promote their stash for fiat in case they don’t need to depend on non-custodial wallets.
2/ Juno as a platform doesn’t custody crypto belongings & depends on our crypto companion for these companies.
On account of uncertainty with our crypto companion, we’ve got taken preemptive motion within the curiosity of our clients.
— Juno (@JunoFinanceHQ) January 4, 2023
Juno has elevated day by day cryptocurrency withdrawal limits by 5 occasions for all “steel customers” to deal with the potential surge of transactions and asserted that every one banking and card-related companies proceed to operate effortlessly.
The valuation of crypto belongings saved on the platform has shrunk to $1.25 million after the agency shared its suggestion with clients.
“We’re actively reaching out to clients and asking them to self-custody,” Juno said.
The group seeks to revive all operations as quickly as attainable and is seeking to collaborate with a brand new custody companion. It additionally vowed to remain on its crypto course, persevering with to “construct and ship like we all the time have.”
JUNO’s Crash within the Previous A number of Months
The worth of the native token of the platform – JUNO – carried out fairly effectively through the first quarter of 2022, reaching an all-time excessive of over $45 in March. The intensifying bear market, although, took its position, and the asset began nosediving.
It misplaced almost 90% of its USD valuation in a matter of two months and continued its downtrend till the tip of final yr.
The troubling information concerning the firm’s custody companion and the disabled crypto purchases have additionally negatively affected JUNO, which at present trades at round $1.13 (a 97% decline in comparison with the height degree).
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