Key points:
- Coinflex To Issue New Coin
- Coinflex Withdrawal Freeze
- The Big Crypto Freeze
Coinflex, a major cryptocurrency exchange has announced plans to launch a new token, monikered “Recovery Value USD”, to raise $47 million. This in the wake of a client failing to repay a debt of this amount, which led to Coinflex freezing account withdrawals. These developments are all part of the Crypto Freeze that has impacted the cryptocurrency market in 2022 and sent the industry towards, or already into a crypto winter.
Coinflex To Issue New Coin amid Withdrawal Freeze
The CoinFlex cryptocurrency exchange has faced financial trouble in recent days after one of their clients failed to repay a debt. The exchange decided Tuesday that it was time for some good news as they announced the release of new tokens which are expected to raise $47 million with the aim that this will allow them to restart withdrawals again.
Also Read: How Will Cryptocurrency Perform During A Recession?
In a blog post on the Coinflex site, CEO Mark Lamb stated “a long-time customer of CoinFLEX’s account went into negative equity, meaning the Individual’s account currently holds a negative balance”. The individual is said to be Roger “Bitcoin Jesus” Ver. The new coin Recovery Value USD (“rvUSD”) and the term are available here, but for now client accounts remain closed to withdrawals.
The Big Crypto Freeze
The freezing of withdrawals by Coinflex comes after other major cryptocurrency exchanges have also frozen accounts and a cryptocurrency-focused hedge fund is said to be in trouble. An already vulnerable cryptocurrency from inflationary pressures, central bank hikes and weakness in broader risky assets has been further weakened by exchanges freezing client accounts.
Since May this has seen:
· Celsius, a gigantic crypto lending company, announced on Sunday 12th June that it would pause withdrawals and transfers.
· Binance also briefly froze withdrawals
· A multibillion-dollar hedge fund, Three Arrows Capital, known as 3AC, could be in trouble too, as we noted in our post Hedge Fund Casualty Rumours as Bitcoin Just Holds $20K
· And now Coinflex is issuing a new token to shore up a debt.