Coinbase-backed exchange users report sudden withdrawal problems

Core Insights - Users on the cryptocurrency trading platform Lighter are currently unable to withdraw funds, coinciding with the launch of its native token, LIT [1][6] Group 1: Company Overview - Lighter is a layer-2 decentralized crypto trading platform built on Ethereum, backed by investors such as Coinbase and Robinhood [2] - The platform's decentralized nature allows for trading of crypto assets without centralized control [2] Group 2: Token Launch and Performance - Lighter launched its native token, the Lighter Infrastructure Token (LIT), on December 30, aiming to bridge traditional finance with decentralized finance [4] - The token distribution allocates 50% to the ecosystem, 26% to the team, and 24% to investors [4] - LIT reached a peak price of $4.04 on its debut but is currently trading at $2.77, reflecting a decline of over 30% from its highest value [5] Group 3: Withdrawal Issues - Users reported being unable to withdraw funds due to an error message indicating "Too many L2 Withdrawals" [6] - Complaints regarding withdrawal issues have been noted in Lighter's Telegram support group [6] - The withdrawal issue appears to be linked to a slowdown in block processing speed [7]