CoinFLEX Takes U-Turn On Resuming Withdrawals, Here’s Why

After promising to resume withdrawals and restore full functionality by the 30th of June, CoinFLEX CEO Mark Lamb now tells CNBC that the exchange will likely not resume the withdrawals by Thursday.

CoinFLEX had earlier paused all withdrawals from their platform, citing extreme market conditions. It then revealed that one individual whale owed the company $47 mln. CEO Mark Lamb later revealed the individual to be Bitcoin proponent Roger Ver, stating that Ver had defaulted on his debt. 

Ver took to Twitter to categorically deny all the accusations from Lamb and claimed that in fact, CoinFLEX owes him money. 

CoinFLEX Launches New Token

Following Ver’s refusal of the debt, CoinFLEX launched a new token rvUSD, promising 20% annual returns on it. The company revealed that the ability to pay such a high interest would come from collecting the owed debt by Ver. In addition, the company has also imposed a financing charge on him.

The token is launched to fundraise the $47 million owed to the company by Ver, CoinFLEX announced in a blog. The company had initially believed that they would be able to raise the funds and resume the withdrawal by Thursday. 

During the launch, the company revealed that there is significant interest in the terms of the coin. Despite the failure to raise the necessary funds within the set date, Mark Lamb has informed MarketWatch that he has tens of millions of dollars in soft commitments for the sale of the token. 

Lamb also informed CNBC that some of the inquiries to buy Ver’s debt have come from traditional funds rather than crypto companies. 

Will CoinFLEX Survive The Crypto Winter?

CoinFLEX becomes the latest in several crypto exchanges like Celsius and 3AC that suffered heavily during the bear market. 

Despite announcing a recovery plan, CoinFLEX was the subject of intense scrutiny and criticism by the crypto community. CoinFLEX revealed that the company would auto-liquidate positions that are running low on equity. However, Ver had a non-liquidation recourse account which prevented the company from doing so. Many have criticized the preferential treatment of Ver.

Moreover, CoinFlex’s tokenization solution of rvUSD has been labeled as a Ponzi scheme by many in the crypto community. 

Whether CoinFLEX can successfully resume its withdrawals remains to be seen.

Nidhish is a technology enthusiast, whose aim is to find elegant technical solutions to solve some of society’s biggest issues. He is a fim believer of decentralization and wants to work on the mainstream adoption of Blockchain. He is also big into almost every popular sports and loves to converse on a wide variety of topics.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.