Poolin has announced that it would soon introduce IOU tokens for the users. The Bitcoin mining pool has made the announcement after suspending the withdrawal service for the users.
IOU Tokens to Minimize Withdrawal Suspension Impact
In terms of hash rate, Poolin is considered one of the largest mining pools for Bitcoin. The mining firm has reportedly suspended the withdrawal services for the users.
Now, the firm has announced that it will issue IOU tokens for the users. These tokens would serve as sort of a compensation for the users that have been impacted by the withdrawal suspension placed by Poolin.
Announcement by Poolin
On Tuesday, Poolin made an announcement through its blog post that it was launching the ERC-20 tokens (IOU) for its community.
The announcement came after the users complained that they were unable to withdraw any cryptocurrencies they had stored in the Poolin crypto wallets.
It was revealed that none of the holders of Dogecoin (DOGE), Zcash (ZEC), Litecoin (LTC), Tether (USDT), Ether (ETH), and Bitcoin (BTC) were able to withdraw their funds.
Official Launch of IOU Tokens
Poolin has announced that they will start issuing the IOU tokens from September 15. The tokens to be issued would be IOUDoge, IOUZEC, IOULTC, IOUUSDT, IOUETH, and IOUBTC.
The tokens will be issued with a 1:1 ratio and they will be released in the ratio of the cryptocurrencies they had in their holding at Poolin.
Like the rest of the firms that faced financial issues, Poolin has reported the same. The firm has announced that they are also facing liquidity problems and for this purpose, they have suspended withdrawals for the users.
They intend to keep the withdrawals suspended until they manage to deal with their financial and liquidity problems.
Communication by Poolin
Poolin has communicated through the blog post that they are trying to deal with the situation as swiftly as possible. Their mission is to resume the withdrawal services as quickly as possible.
They want all their users to carry out withdrawals for any cryptocurrencies whenever they want. For now, they are facing a liquidity problem that is short-term but they will be able to deal with it very quickly.
They have multiple solutions in consideration that they may implement to solve the problem and bring their mining pools up to full strength.
Once the IOU tokens are issued to the users, the values of the actual cryptocurrencies each asset corresponds to would be set to zero.
Using the IOU tokens, the users would either be able to trade them with original tokens or use them for other purposes. The users can also buy company shares or purchase mining rigs, as well as carry out trades with them.