CoinFlex to issue new Recovery Value USD USD by June 30

CoinFlex to issue new Recovery Value USD USD by June 30

The exchange CoinFlex will resume withdrawals after issuing a new token called Recovery Value USD rvUSD which will give users 20% annual returns, according to a whitepaper on June 27.

CoinFlex intends to issue $47 million worth of rvUSD beginning June 28 to deal with liquidity issues, and expects withdrawals to resume by June 30, depending on demand for the new token.

According to the announcement, only non-U. Sophistic investors can participate in the token sale.

When asked about the possibility of a bank run, Lamb said that this is very unlikely as customers can withdraw funds immediately after the fundraising via token issuance is complete.

The decision came a few days after CoinFlex was the latest firm to halt its withdrawals. After a high net worth customer failed to repay a $47 million debt, it stopped making withdrawals.

An individual with substantial shareholdings in several unicorn private companies and a large portfolio faced problems with their debt and couldn't repay their debt, according to a paused withdrawal last Thursday by the CoinFlex exchange.

The CEO did not give the individual name, but said that CoinFlex believes that this liability is only a small portion of the counterparty assets.

The counterparty is not a lending firm, according to the company. CoinFlex said something.

This particular user has a non-liquidation option on their account. It added that no other account has negative equity.

There are several firms and exchanges that are pausing withdrawals due to the issue of liquidity in the criptocurrency industry.

After restoring withdrawals, CoinFlex said it would be more transparent. The new transparency model will include making every account's futures positions publicly available, releasing collateral information and working with an external auditing firm.