Bitcoin Miner Poolin to Issue 'IOU' Tokens After Suspending Withdrawals
Poolin, one of the largest bitcoin (BTC) mining pools, has announced that it will issue IOU (I Owe You) tokens to impacted customers after it froze withdrawals last week.
In a blog post, Poolin said that it will calculate user balances across its native wallet and mining pool before issuing a total of six IOU tokens.
The tokens will reflect a 1:1 ratio of user balances across bitcoin (BTC), ethereum (ETH), tether (USDT), litecoin (LTC), Zcash (ZEC) and Dogecoin (DOGE).
The intention is to gradually burn IOU tokens batch-by-batch. Users can also withdraw IOU tokens from the platform at any time.
Poolin said that the reason behind the withdrawal freeze was related to liquidity issues. The value of cryptocurrencies have dwindled significantly this year, with bitcoin sliding by more than 50% since the start of the year.