Poolin, one of the largest Bitcoin mining pools by hashrate, has announced it will be issuing IOU tokens in a bid to “minimize the impact of withdrawal suspension” for its users.
The mining pool has detailed its wallet service will release Ethereum-based IOU tokens for users unable to withdraw their BTC, ETH, USDT, LTC, ZEC, and DOGE holdings. The pool will issue IOUBTC, IOUETH, IOUUSDT, IOULTC, IOUZEC, and IOUDOGE at a 1:1 ratio based on users’ holdings.
Poolinhalted withdrawals earlier over “liquidity problems.” The firm said:
“The company now is striving for multiple solutions to solve the short-term shortage of liquidity, including seeking new investments, debt-equity swaps and assets liquidating.”
The platform said it plans to burn users’ IOUs after they were given the opportunity to trade them back for their original tokens on-chain, or with third parties. The tokens could also be used to buy mining rigs or purchase shares in Poolin’s U.S. company.
