Many crypto exchnages have been freezing withdrawals due to a liquidity crunch on their platform. Celsius and Voyager Digital are two popular exchanges that have also been affected by this. And now CoinFLEX joins them as it freezes crypto withdrawals citing the uncertainty in the market and problem with a counterparty. The CEO of the exchange, Mark Lamb, wrote in their blog post that the withdrawals will be paused for now. The estimated time given for resuming withdrawals is 30th June 2022.
CoinFLEX in trouble
If a platform has to pause withdrawals, it does seem to be in trouble. They have even paused the trading of FLEX coin (CoinFLEX’s native coin) trading pairs in both spot and perpetual markets. The CEO also said that they are confident that they will be able to fix the current situation in a while. However, for users, it is not a good sign as it’s clear that their funds are at risk. As for the exchange, they are going to lose a lot of users. Most of them will probably shift to some other platform once the withdrawals are resumed.
The Three Arrows Fiasco
The Three Arrows fiasco has been a major problem in the crypto space. The firm recently got liquidated due to its over-leverage positions, and now exchanges that were associated with them are also getting burnt. For example, Finblox and Babel Finance had to reduce withdrawals because they were involved with the firm. It also shows how leverage is the primary reason for so much volatility and the major corrections.
About CoinFLEX
CoinFLEX was established in November 2018 by Mark Lamb and Sudhu Arumugam with the goal of giving institutional and ordinary investors a simple way to earn and trade cryptocurrencies. It has developed some ground-breaking solutions to connect investors and the cryptocurrency markets.
CoinFLEX brings user-friendly yield products like flexUSD and AMM+, a capital-efficient automated market maker. They allow users to use multiple collaterals and claim to be 10x more efficient than Uniswap. The platform is backed by Mike Komaransky, Roger Ver, Polychain Capital, and Dragonfly Capital.
What are your thoughts as CoinFLEX freezes crypto withdrawals? And have you heard about the platform before? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Binance CEO says bailing out bad crypto projects makes no sense.