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Another Crypto Exchange to Lay of Staff to Reduces Costs by 60% 

The exchange stated that it intends to be right-sized for any entity looking at a possible acquisition or partnership opportunity with CoinFLEX....
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The exchange stated that it intends to be right-sized for any entity looking at a possible acquisition or partnership opportunity with CoinFLEX.

CoinFLEX, a cryptocurrency exchange, said that it had reduced a “significant” number of its team members to reduce operating costs.

In a blog post on Friday, CoinFLEX stated that had reduced some staff from “all departments” and “all geographies” in order to lower its costs by 50% to 60%. Most of the team will be focusing on technology and the exchange stated that it will consider scaling when “volume comes back”.

The exchange stated that it intends to be right-sized for any entity looking at a possible acquisition or partnership opportunity with CoinFLEX.

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CoinFLEX stopped withdrawals on Saturday after a third party failed to pay a $47m margin call. Later, CEO Mark Lamb took to Twitter to confirm rumors CoinFLEX had a written agreement with Roger Ver ( BC), “obliging him to personally guarantee any negative Equity on his CoinFLEX accounts and top up margin frequently.” Ver has denied claims by the exchange.

Although CoinFLEX opened user withdrawals for the first time on July 14, many users expressed concern about the exchange’s liquidity and other insolvency issues such as Voyager Digital, Three Arrows Capital, and Celsius Network. Later estimates suggested that CoinFLEX could have a shortfall of $84 million. For this, the firm has initiated arbitration procedures in Hong Kong.

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Coinbase: Related: Insolvency of Crypto Firms — Coinbase

CoinFLEX originally stated that it would fix liquidity problems by issuing a new token called Recovery Value USD (rvUSD) after the withdrawals were halted. Although no tokens were released at the time this article was published, CoinFLEX stated that it would continue to implement the recovery plan.

“We are still working with lawyers and significant creditors to finalize the details of the distribution of CoinFLEX Composite (inclusive rvUSD and equity and FLEX Coin). We expect to have numbers by the next week so we can get this to a vote of all depositors as soon thereafter.”

Vitalik Ivanov

Vitalik Ivanov

Vitalik is a speaker / journalist. He has spoken and given presentations at many blockchain events across the world. Vitalik is based in the UK, he loves to travel and calls Dubai his "crypto home". Vitalik has enjoyed speaking at blockchain events and has a main focus on CBDC's, NFT's and altcoins. Vitalik says "Everything, and i mean everything will be an NFT one day".
Vitalik Ivanov

Vitalik Ivanov

Vitalik is a speaker / journalist. He has spoken and given presentations at many blockchain events across the world. Vitalik is based in the UK, he loves to travel and calls Dubai his "crypto home". Vitalik has enjoyed speaking at blockchain events and has a main focus on CBDC's, NFT's and altcoins. Vitalik says "Everything, and i mean everything will be an NFT one day".

© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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