A few days after suspending withdrawals on its platform due to a high net-worth client failing to meet a margin call, crypto futures exchange CoinFLEX is now planning to launch a “Recovery Value USD” (rvUSD) token that will enable it to resolve withdrawal issues.
CoinFLEX to Raise $47 Million
In a whitepaper published on Monday, CoinFLEX noted that it plans to raise $47 million in rvUSD between June 28 and July 1. According to the exchange, rvUSD will offer a 20% annual percentage rate (APR) to investors.
The company stated that only non-US resident high net-worth investors with an annual income of at least $200,000 and a net worth of $1 million and above are eligible to participate in the token sale.
The firm said that its June 30 slated date to resume withdrawals would depend on the amount of rvUSD sold.
“We’ve spoken to a significant amount of private investors such that we think that at least half of the issuance is going to be subscribed for,” Mark Lamb, CEO at CoinFlEX, said in a statement.
Last week, the exchange announced it had halted withdrawals due to extreme market conditions and counterparty uncertainty. At the time, the exchange noted that the counterparty was not Three Arrows Capital or any lending firm.
On Monday, CoinFLEX said the involved counterparty is a “high integrity person” with “significant shareholdings in several unicorn private companies and a large portfolio.”
Crypto Firms Take Measures to Survive Bear Market
Meanwhile, the current crypto bear market has forced crypto-related firms to take several measures to survive the bearish season. A few weeks ago, crypto lenders Celsius and Babel Finance halted withdrawals and redemptions on their platforms due to liquidity issues.
Major crypto exchanges including Coinbase, BlockFi, and CryptoCom have reduced a significant number of their employees to cope with the bear market.
Source: https://coinfomania.com/coinflex-to-raise-47m-withdrawals-issues/#utm_source=rss&%23038;utm_medium=rss&%23038;utm_campaign=coinflex-to-raise-47m-withdrawals-issues