CoinFLEX intends to raise deficient funds by issuing new tokens
If the whole $47 million is reached, all CoinFLEX users will be able to withdraw their assets in full. The token will have a 20% dividend.
Four days after banning withdrawals in response to an undisclosed counterparty’s unsatisfied margin call, the cryptocurrency exchange CoinFLEX will issue a new token in an attempt to raise $47 million.
Mark Lamb, CEO of CoinFLEX, said in a Monday interview with Bloomberg, “We’re converting a problem into an opportunity.”
The coin will have a 20% dividend, and if $47 million is raised in total, all CoinFLEX users would be able to withdraw their cash in whole, according to Lamb.
“Other methods are also being made accessible; we will do everything necessary to guarantee that consumers’ monies are restored and withdrawals are allowed,” Lamb stated on the exchange’s Telegram channel after the interview.
When questioned whether there were worries over the possibility of a run, Lamb said that they were baseless.
“We’re not afraid about that situation since everyone can withdraw after the fundraising campaign is over,” Lamb added. “We want everything to always be matched.”
On June 23, CoinFLEX stated that the exchange will cease all withdrawals and trading of its native FLEX cryptocurrency.
“Due to last week’s extraordinary market circumstances and persistent uncertainty around a counterparty, we are suspending all withdrawals,” the exchange said at the time. We anticipate resuming withdrawals in a stronger position as quickly as feasible.
In addition, the exchange will vow to make leveraged positions more visible in the future, according to Lamb.
“These roles will be made public, and we will be working with an auditing company,” Lamb added. There is not a single futures market in the globe that makes these positions available to the public.
Lamb remarked that there is a balance between openness and privacy. At this moment, the exchange will not disclose the identity of the unidentified counterparty with an unfulfilled margin call.
When asked whether CoinFLEX would decide to sell if the token sale fails to reach the required $47 million, Lamb said, “it’s conceivable, but we believe the company is worth retaining.” “Additionally, there is much demand in the token, so it is unquestionably the best alternative,” he said.