- Coinflex has opened withdrawals but under strict conditions
- Only 10% of some assets can be withdrawn, with BCH, FlexUSD, and existing FLEX holdings locked up
- Withdrawals have been locked for three weeks
Coinflex has announced that users will soon be able to withdraw up to 10% of their holdings, but under certain conditions. The FlexUSD stablecoin will still be locked for all users, as will BCH and existing FLEX holdings, but new FLEX token holders will be able to have free use of their tokens. The company promises an update next week which may see withdrawals expanded, depending on how Coinflex progresses with its fundraising ventures.
90/10 Lock for All Existing Assets
Coinflex posted an update on its website yesterday announcing that it will start work today on re-enabling withdrawals. However, a 90/10 lock ratio will be in place for all users, meaning that they can only withdraw 10% of their holdings, and no flexUSD coins at all.
Coinflex halted withdrawals on June 23rd, with co-founder and CEO Mark Lamb citing “extreme market conditions last week & continued uncertainty involving a counterparty” as the reason why the platform needed to lock down. This counterparty was famously revealed to be Roger Ver, who Coinflex says owes him $84 million after issuing him several margin calls.
FLEX and FlexUSD Tokens Still Massively Down
Celsius this morning essentially shut its entire operation down in order to return balances to their owners before the withdrawal process can begin, with a different process for users of its various products:
- Bridge users will experience a 90% lock on new smartBCH deposits, while no BCH can be withdrawn
- FlexUSD balances will be locked for everyone, while new flexUSD deposits will be subject to a 90% lock
- FlexUSD balances held by CoinFLEX.US users will be subject to a 90% lock
- New flexUSD minting will be suspended until further notice
- Existing FLEX purchases will be locked, but new FLEX buyers will have full utility
The price of the FLEX responded in kind to the news that withdrawals were at least partially open by jumping 37%, although it is still down an incredible 91% from before withdrawals were halted. The FlexUSD stablecoin remains massibley depegged at $0.28.
Coinflex says it will provide further updates next week, adding that in the meantime it is “still considering the implications of dollarization from user demand and legal perspectives” while “continuing to work on all avenues to resolve this situation.” Such moves could include further withdrawals and potential new investors into the platform, with the company saying that it continues to “work closely with the significant creditor group.”
