CoinFLEX faced a lot of criticism online following its announcement stopping all withdrawals abruptly for an unspecified period. The organization’s followers on social media were disappointed with the action by the team at such a time when the markets are extremely volatile and showing bearish indications.
For the time being, CoinFLEX has sent out apologies urging the users to understand their situation and be patient while they sort out the problems and open withdrawals.
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What is CoinFlex?
The Bitcoin futures exchange CoinFLEX bills itself as the first physically delivered crypto exchange in the world. Thie spot exchange was founded in January 2019 as a spin-off from the long-established UK exchange Coinfloor. In addition to launching the first crypto interest rate markets, CoinFLEX states to have also launched the longest-dated futures markets.
Founded in Seychelles, CoinFLEX has a global team based in Hong Kong and customers all over the world. The team is currently headed by co-founder and CEO Mark Lamb. As of today, over 25 different cryptocurrencies are available in its futures, spot, and repo markets. Big names like B2C2, Amber AI and Grapefruit Trading, Roger Ver, Dragonfly Capital Partners, Mike Komaransky, and Trading Technologies are shareholders and investors in the company.
While it is one of the smaller organizations dealing with cryptocurrencies, the company had managed to gain a decent userbase over several months.
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Withdrawals Closed for all Investors Across Multiple Offerings.
The announcement regarding the withdrawal hold back came on Thursday, when the team managed to keep users in the know by posting details on all social media handles as well as on the exchange website and app. The exchange mentioned that it would be stopping the withdrawal of all cryptocurrencies on the platform. Trading in perpetual and spot for FLEX, the native token shall also be halted momentarily.
The reasons speculated around this move include potential liquidity issues. This problem is being faced currently by several other smaller and medium-sized crypto companies. The bearish sentiment and lower transactions have paved the way for insolvency. Organizations like Celsius and Voyager had been gaining much traction for dealing with the same kind of issues.
Some uncertainty around a certain counterparty was also mentioned. However, CoinFLEX has clarified that the mentioned counterparty is not 3 Arrow Capital or any other lending firm, contrary to guesses by the users.
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With several crypto companies initiating mass layoffs and claiming potential insolvency, the current market conditions have been taking their toll on everyone in the cryptocurrency space at this time. The CEO of CoinFLEX states that they are looking to solve the issues as soon as possible and start complete functioning across the platform shortly. The expected time for the same is 30th June.
The company mentioned that these dates, however, are estimates and are solely based on the current understanding of the market and the speed at which actions can be taken. The next update regarding any more advancements will be posted on 27th June as mentioned on the website.
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