When companies shut down due to regulatory hurdles, they usually earn the sympathy of their industry peers and customers. However, some of them exit in such a manner that they instead attract the irk of their peers and ire of customers. Zebpay is an example of the former, while Coindelta, which announced its closure a few days back, has become an example of the later. The company has attracted severe criticism and some sharp reactions from the crypto community for hiking its withdrawal fee after the announcement of shutting down.
Coindelta announced its closure on 31st of March, right after the Supreme Court adjourned the hearing of RBI vs. Crypto case till July. It was the second exchange to do so after Zebpay, so initially, all ire of the community was around the delay that the government is doing in announcing crypto regulations. The company halted operations same day but gave 30 days to the users for withdrawal of their funds.
However, soon after the announcement, Coindelta hiked its withdrawal fees as much as 300% – 500% on most crypto assets! This increase in the fee has made withdrawing assets from Coindelta a very expensive affair. And besides the customers of company CoinDCX, another cryptocurrency exchange operating in the space, also has some strong opinions about it. Their team mailed us a reaction to the entire exit strategy of Coindelta, and condemned the move of the company to hike its withdrawal fees. In response, they’ve also slashed the withdrawal fees on Ripple (XRP), TRON (TRX) and Stellar (XLM) by 100%. That means free withdrawals on XRP, TRX and XLM for CoinDCX users.
Given below is an excerpt from their reaction sent to us:
“Soon after announcing to shut down its operations, CoinDelta, abruptly increased the withdrawal fees by 3–5x on all crypto assets stored on their exchange. CoinDCX, India’s largest crypto exchange, condemned this exit strategy consorted by CoinDelta and have scaled down the trading fee on all crypto assets significantly, to enhance and restore the user confidence in crypto space.”
CoinDCX said that there’s a need to rejuvenate the trust of crypto community after recent developments (i.e. the delay of hearing and vicious campaign of skeptics), which is why they’re doing this (slashing the withdrawal fee). We think that they’re right, and therefore we at Crypto-News India also welcome this move of the company. Let’s see whether any other cryptocurrency exchanges do that or not.
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