CoinFlex Announces a Master Plan to Revitalize its Ecosystem by Unveiling a $47M recovery token
- CoinFlex on Monday said the recovery plan was necessitated by the negative equity suffered by an indebted individual during the prevailing market downturn.
As a measure geared towards resolving its withdrawal issues, a popular futures crypto exchange, CoinFLEX, has announced plans to issue a recovery value USD (rvUSD) token. The exchange announced the new development in a blog post relayed via its official handle on Monday.
Recall that CoinFlex had in the last week post announced a temporary suspension of withdrawals, perpetual and spot trading on its network following the lingering market downturns and a huge debt by a high-net-worth customer.
CoinFlex Master Plan
According to a whitepaper conveyed by the exchange, the issuance of the rvUSD recovery token will commence tomorrow, June 29, and possibly run till July 1. CoinFlex on Monday said the recovery plan was necessitated by the negative equity suffered by an indebted individual during the prevailing market downturn.
Given the new development, Coinflex announced its intention to possibly recommence withdrawals by June 30. However, the exchange noted that its possibility relies on received funds in pursuit of the rvUSD issuance.
Furthermore, the exchange wants to incorporate a 20 percent annual percentage rate (APR) accrued and paid daily in the rvUSD issuance.
In the blog post, the exchange hinted that the indebted customer with “high integrity” ran into liquidity turmoil as a reaction to the prevailing crash in crypto markets. CoinFlex maintained that the individual had before the prevailing incident, met its margin call.
According to the exchange, the emerging experience has revealed the tendency of the crypto market to move very smartly for the effectiveness of manual margin arrangement. The company hinted that there is no other account on the network that is currently experiencing such negative equity.
The exchange regretted the situation, which consequently restricted the utilization of its platform by users. CoinFlex, however, seeks the understanding of its users at this period, stressing that similar circumstances will not reoccur in the future.
In addition, the CEO of CoinFlex, Mark Lamb said the exchange is now in talks with potential large buyers. Lamba believes there is a significant interest in the presented terms.
According to the CEO, customers will begin to withdraw their funds after the completion of the fundraising round intended for the new token. He hinted that the exchange intends to ensure transparency and accountability for future positions, national value of accounts, and margin.
Lamba said CoinFlex will employ an external auditing company to achieve such positions. According to the CEO, customers will begin to withdraw their funds after the completion of the fundraising round intended for the new token.
He hinted that the exchange intends to ensure transparency and accountability for future positions, national value of accounts, and margin. Lamba said CoinFlex will employ an external auditing company to achieve such positions.
Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”
