August 19, 2022

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CoinFlex will issue a new token after withdrawals are frozen

CoinFlex will issue a new token after withdrawals are frozen

Bloomberg – Crypto Exchange CoinFlex Plans to Raise Funds New token issuance offers 20% annual returnin an attempt to resume withdrawals after a customer failed to pay off $47 million in debt.

The platform said it will begin issuing $47 million in what it calls “US$ redemption value” tokens on Tuesday.. The resumption of withdrawals, scheduled for June 30, will depend on the level of demand for the new tokens.

“We have spoken with a large number of private investors, So we believe that at least half of the issue will be underwrittenMark Lamb, CEO of CoinFlex, told Bloomberg News in New York on Monday.

Sell ​​Token Eligible Only for seasoned non-US investorsAccording to the statement. Founded in 2019, CoinFlex It is a cryptocurrency exchange A smaller company focused on derivatives trading. Among the stock market investors is Roger Ver, one of the strongest advocates of Bitcoin Cash.

CoinFlex paused withdrawals last Thursday after an unspecified counterparty, High net worth individual with “large holdings in several private unicorn companies and a large portfolio” She had liquidity problems and was unable to repay the debt.

Lamb refused to name his counterpart, Although he added that CoinFlex believes this liability represents only a “small portion” of the total private company assets of the counterparty.

The pause comes amid liquidity problems and the spread of infection across the sector. Major lenders Celsius Network and Babel Finance have frozen withdrawals, And Three Arrows Capital, a cryptocurrency hedge fund, is also facing liquidity issues that have worried investors..

CoinFlex said that the counterparty involved is not Three Arrows Capital or any lender. Although you usually liquidate any passive capital account, the user had an unliquidated recourse accountAccording to CoinFlex. He added that there are no other accounts with a negative balance.

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also, CoinFlex said it is also creating a new transparency model around margins after withdrawals are returned.. The future position values ​​for each account will be made publicly available by an external audit firm, which will validate every hour. They plan to publish information regarding the safeguards that are being maintained.

– With the help of Sonali Başak.