Cyclebit

In his Twitter account, journalist Colin Wu reported on the mass cryptocurrency withdrawal from the Chinese exchange market Cryptoquant analytical service had covered. The following
exchange platforms were affected: Binance, Kraken, Poloniex, Bitfinex, Bittrex and Kucoin.

Users not only withdraw the currency and terminate their accounts but also encourage others to do the same.

There are two reasons for such unusual behaviour. First, for several days,
many platforms have been struggling with withdrawing funds and system malfunctions. The second reason is the rapid development of the decentralized finance (DeFi) sector.

The strategy offers to make a deposit on the platform to receive interest in a different cryptocurrency. Users are tempted by the high interest rates.

The first days after the launch, the annual percentage yield of the service can reach thousands of percents. Of course, the strategy is quite risky.

Such services often launch without code audit and might crash at any moment.