Key Takeaways
- The cryptocurrency alternate CoinFLEX has suspended buyer withdrawals on account of harsh market circumstances.
- CoinFLEX is at the very least the third firm to restrict companies this month after Celsius and Babel took related actions.
- The alternate is reasonably giant, however its determination doesn’t appear to have impacted the crypto market.
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Crypto alternate CoinFLEX has paused withdrawals, including to a rising checklist of crypto corporations limiting their companies.
CoinFLEX Suspends Withdrawals
In an announcement at this time, CoinFLEX cited “excessive market circumstances final week [and] continued uncertainty involving a counterparty” as its purpose for pausing all withdrawals.
CoinFLEX added that the counterparty in query isn’t 3 Arrows Capital or some other lending agency. 3 Arrows Capital is a crypto hedge fund that’s dealing with rumors of insolvency, a risk that might have an effect on a number of different crypto firms.
Along with halting withdrawals, CoinFLEX additionally stated that it will droop buying and selling of its native token FLEX Coin (FLEX). This is applicable each to perpetual and spot buying and selling.
The corporate stated that it will present an replace on June 27. It goals to renew withdrawals by June 30.
Celsius Began the Pattern
CoinFLEX is at the very least the third crypto firm this month to cease withdrawals. Celsius started the pattern by suspending withdrawals on June 13. Babel Finance adopted swimsuit on June 17.
Moreover, Bancor paused an investor safety program known as Impermanent Loss Safety on account of hostile market circumstances. It didn’t droop withdrawals, not like the others.
CoinFLEX is a reasonably giant alternate. It dealt with a buying and selling quantity of $500 million to $1.5 billion over the previous 24 hours.
That stated, the alternate doesn’t appear to be in style sufficient to influence investor sentiments or the market. The value of Bitcoin is up 3.4% over the previous 24 hours regardless of CoinFLEX’s determination.
Nonetheless, the truth that Coinflex determined to close down companies might affect different firms to comply with swimsuit.
Disclosure: On the time of writing, the creator of this piece owned BTC, ETH, and different cryptocurrencies.