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Coindelta abandons its users by levying high withdrawal fees; users express their displeasure and retaliate

Namrata Shukla

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Coindelta abandons its users by levying high withdrawal fees; users express their displeasure and retaliate
Source: Pixabay

The Indian crypto community received some shocking news on 30 March when Coindelta, an Indian cryptocurrency exchange, shut down its services abruptly. This news came after the Supreme Court of India adjourned the ‘Crypto v. RBI’ case within minutes of hearing and postponed it till July. This not only disappointed crypto enthusiasts in the country, but also allegedly contributed to the shutdown of exchanges like Coindelta.

However, as the exchange announced that it would shut down operations on 30 March and suspend wallet services by 29 April, users were in for a shock as withdrawing their digital currencies became an expensive task. Users claimed that the exchange raised its withdrawal fees and was charging an exorbitant amount for withdrawal of any cryptocurrency following the shutdown.

@Cryptooindia shared a post on the hiked withdrawal fees and highlighted how Zebpay, another cryptocurrency exchange, pulled a similar trick when it ceased operations in India. It compared the withdrawal fees of Coindelta to Binance, the world’s largest cryptocurrency exchange. CryptoIndia YT tweeted,

A Quora user, Naif Amoodi, found this move from Coindelta’s end unprofessional and urged them to be ‘professional’ and resume trading for at least a month. This move would help users swap their holdings for one cryptocurrency and withdraw with a single withdrawal request. Amoodi highlighted the spike in withdrawal fees and presented a few examples,

“Bitcoin: 0.0020 BTC / Rs.600 (previously just 0.0005 BTC)
Litecoin: 0.05 LTC / Rs.225 (previously just 0.002 LTC)
Lumens: 28 XLM / Rs.225 (previously just 0.01 XLM)
Ether: 0.03 ETH / Rs.300
XRP: 10 XRP / Rs.230
EOS: 0.8 EOS / Rs.250
NEO: 0”

He explained in his post that NEO’s withdrawal would be in multiples of 1 and that if any user had less than 1 NEO. “then you cannot withdraw your holdings and Coindelta will keep this. If you have 1.9 NEO, then you can only withdraw 1 NEO and Coindelta will keep the rest.”

This would mean that any amount of cryptocurrency lower than the withdrawal fee would remain with the exchange, prompting many Indian crypto enthusiasts to brand it as an ‘exit scam.’ According to him, Coindelta must let users swap their cryptocurrencies for a uniform one, before suspending trading on its platform. He added,

“If Coindelta does not comply then it would be apparent without any doubt that they are orchestrating a very clever exit scam. The fact that they increased the withdrawal fees so significantly just further strengths this assertion.”

Other cryptocurrency exchanges like WazirX and Bitbns cashed in on this and offered relief to Coindelta users by promising a refund of the withdrawal fees they paid at Coindelta, if they transferred their funds to their exchanges. However, this offer came with strings attached. These exchanges required deposits to be worth at least Rs 25,000 [approximately $361] for claiming the withdrawal fees.

A Twitter user @Satishraj_MP learned this the hard way. The user transferred Rs.2,500 worth of crypto from Coindelta to WazirX, knowing that the criteria to get 100% refund was to deposit crypto worth Rs. 25,000. When he asked for a refund, he received the following reply from WazirX,

“Hi! Sorry to disappoint you. The minimum value of the funds deposited should be 25,000 INR in order to be eligible for the fee refund. Thanks!”

Other users also directed their anger at Coindelta. @strawpanty tweeted,

“The withdrawal fees are humongous. Lost about 500 plus rupees on withdrawal of 7k worth of currencies. Not to mention that I’m unable to withdraw lower value currencies like golem and cindicator due to the overwhelming fee. #Disappointed #cryptocurrencies”

Another Twitter user @Tabrez44455383 expressed anger over Coindelta’s exit performance. The user tweeted,



“I use to love CoinDelta but now hate it. Not just because it is closing but because you have increased the withdrawal fee of tokens drastically compare to normal fee or other India or Foreign exchanges.
Do not come back ever!!!”

While some users did justify Coindelta’s decision to call it quits, many were enraged over the withdrawal fees fiasco. However, the lack of regulations around cryptocurrencies has not only led one of the few exchanges in India to bid adieu to the ecosystem, but also discouraged crypto users from trusting an exchange.

Such incidents are indicative of the fact that India needs cryptocurrency regulations to not only make trading legal, but also to curb such practices. Due to a lack of regulations and the RBÍ’s ban on trading, blockchain technology and the cryptocurrency industry will be dead, if circumstances in India don’t change soon.





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Bitcoin [BTC] surges above $5,500 and breaks major resistance level; collective market rises

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Bitcoin [BTC] surges above $5,500 breaking major resistance level; collective market surges
Source: Pixabay

Bitcoin [BTC] broke out of its sideways trend that saw coins fall after a brilliant start to April. This “break-out” is especially significant since it came days after the coin was trading sluggishly, pulling the market cap below $175 billion.

After breaking the $5,200 level on April 16, the coin held steady, showing no noticeable dips. However, it also began losing the momentum it had gained when it rose by 15 percent on April 2. Many saw the past week as Bitcoin losing steam, opining that a drop to as low as $4,000 would manifest. This pessimism coupled with the delisting dilemma saw the global market decline by 3.31 percent over the past weekend.

Given this backdrop, the present Bitcoin price incline was even more bullish for the collective market. Further, this was not just an effort to shrug off “sideways bears,” but instead, two key levels were broken in order to usher a collective market rise and sustain BTC bullishness.

Source: Trading View

RESISTANCE

The first, as indicated by eToro’s senior market analyst Mati Greenspan, was the resistance level of $5,350. When Bitcoin began to consolidate following the early April high, Greenspan stated that if the BTC price were to punch above the aforementioned level, it “would likely serve as confirmation that we’re pushing higher and will lead to further buying pressure.”

Greenspan stated that the $5,350 level acted as a major support level throughout 2018. Hence, it is incredibly important that Bitcoin surge above it in the next rise to consolidate buying pressure. Another important point to signal the coming of a bullish market was the 200-day moving average which Bitcoin has stayed above since the April 2 rally.

PSYCHOLOGY

The other significant level for the collective market is Bitcoin’s ascendance over $5,500, which it managed courtesy of this rally. Many, including Greenspan, pegged $5,000 as a key psychological level for the coin and hence, the rise above $5,500 less than three weeks after $5,000 was broken will bring back optimism to the BTC market.



Further, as was seen in the April 2 rise, the Bitcoin pump resulted in the king coin increasing its market dominance. At the close of March, Bitcoin was edging closer to losing the majority. However, the rally saw its share increase to 52.4 percent within a day. Following this recent 4.61 percent increase against the US Dollar, the king coin’s dominance increased to 53.2 percent.

Given the elasticity of the collective market to changes in Bitcoin’s price, the market was awash in green as Bitcoin broke the resistance and psychological levels. Amid this bullish charge, some coins stood out for their above-average gains, which included Bitcoin Cash [BCH], Cardano [ADA], EOS [EOS], Litecoin [LTC], and the exchange-ousted Bitcoin SV [BSV].





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