A much hyped new cryptocurrency, that gained a market cap of nearly $5 billion at its height, plunged today to $1.7 billion after one of the few exchanges where it can be traded, handling around 85% of Raiblocks’ volume, suddenly froze XRB withdrawals.
Citing AML/KYC concerns and the need to comply with them despite not being based in US, BitGrail’s anonymous founder today announced only bitcoins can be withdrawn from the exchange:
“XRB deposits and withdrawals are not availalbe at the moment (same for LSK and CFT; LTC tickets should be fixed asap). But there is the possiblity to use BTC if someone just want to withdraw.
That’s because BTC is aimed to stay fully functional (maybe with rare and/or unpredictable exceptions). This is the reason why, like written in the TOS, in case of closing an account, the balance will be sent to the user as BTC,” he said.
Anyone who doesn’t verify will have their account closed and their assets sent to their BTC address, the exchange claims. But many have been waiting since December to be verified, with the Raiblocks team seemingly loosing patience, stating:
“While we understand that he is trying to protect his company from any legal issues, it is also important that if a verification system is put in place that people can actually get verified.
Several of you have been waiting since December for these verifications to process which is unreasonable and frustrating.”
Now, with the closure of withdrawals XRB holders are understandably nervous especially as the exchange owner is anonymous and goes by the name of “The Bomber.” One such XRB investor says:
“I have my life savings in XRB on Bitgrail and I basically just lost half of it because of this guy. I worked at a dead end job for years to get enough money to make this investment.
Now I understood the risk of getting into Crypto and I’ve accepted what’s happened. All I can ask is that there be some justice for me and the other people he’s *******.”
Raiblocks is a curious new cryptocurrency that claims to be very scalable because “each account has its own blockchain (account-chain) equivalent to the account’s transaction/balance history.
Each account-chain can only be updated by the account’s owner; this allows each account-chain to be updated immediately and asynchronously to the rest of the block-lattice, resulting in quick transactions.”
On the surface that appears to be a very fantastic claim, but perhaps we’ll leave it to experts to analyze more fully. Suffices to say, on a first look their website seems underdeveloped, if we can put it that way. As shown by their about section, which simply says see coinmarketcap:
The currency, however, has seen incredible hype on social media, with it suddenly name-dropped seemingly everywhere.
Whether that was organic or organized we do not know, but undoubtedly now there will be more scrutiny on this newcomer.