Finblox withdrawal limits stimulate anxieties in the community

Twitter user Gofortim2 has called on lending platforms to be more transparent and honest about where assets are placed.

In a tweet, Finblox proclaimed that the firm is evaluating the effects of 3AC’s situation on its liquidity. While the firm does this, it highlighted that it paused its reward distribution for all of its users and lowered its monthly withdrawal limit to 1,500 USD.

Many users of the platform are disappointed with the news, sharing the frustration of not being able to raise their funds. Community members, on the other hand, have begun calling Finblocks’ 90% Annual Percentage Yield (APY) offer a sustainable one for Axie Infinity Shards (AXS).

According to Finblocks user Terrence Lee, Terra (Luna) withdrew her assets from Finblocks during the fall.  He noted that it was becoming increasingly clear that lenders who offered large returns were “taking too much risk.”

In response to the current situation, Twitter user Gofortim2 called on lending platforms to be more transparent.

Finblox, a crypto-staking platform backed by Three Arrows Capital (3AC) has paused award distributions and tightened its withdrawal limits. Since then, community members have expressed concern about their resources, with some calling for transparency and decentralization.

In addition, Twitter users have noted that it may be time for companies to lower their APY rates because it has become an ineffective tool to attract users; now, users fear for the safety of their assets.

On June 16, Danny Yuan, CEO of 8th Block Capital, publicly called for platforms holding assets owned by 3AC, requesting that their company’s funds be suspended. Yuan claimed that they detected a sum of $1 million missing from their accounts with 3AC.

Meanwhile, a report noted that the firm borrowed Bitcoin (BTC) from lending platform BlockFi and could not meet a margin call after the market slump this week. Some eve