Announced on Tuesday, June 28, in a blog post, CoinFlex is opting to utilize what it calls a “tokenization solution to resume withdrawals” to stave off impending doom. The cryptocurrency exchange is, like many in the industry, faced with rather dire circumstances following its freeze on withdrawals last week, turning toward the blockchain to find its inevitable solution.
The company is now issuing a so-called Recovery Value USD coin, or rvUSD, at a total value of $47 million at a 20% interest. As its name implies, the CoinFlex rvUSD will act as a pick-me-up in the wake of the firm’s massive debt accrued when one investor’s account hit “negative equity,” according to CoinFlex CEO Mark Lamb. This incident led the firm to halt withdrawals, causing a frenzy in the market given recent occurrences with both Celsius and TerraUSD.
CoinFlex has yet to announce the name of the said investor but offered up some details as describing the customer as “a high-integrity person of significant means, experiencing temporary liquidity issues due to credit (and price) crunch in crypto markets (and non-crypto markets), with substantial shareholdings in several unicorn private companies and a large portfolio.”
A clause within the investor’s CoinFlex account disallows the firm from liquidating it, which would be the main course of action for CoinFlex. The clause specifically states that the customer would have to “pledge stringent personal…
