- The cryptocurrency trade CoinFLEX has suspended buyer withdrawals as a consequence of harsh market situations.
- CoinFLEX is no less than the third firm to restrict companies this month after Celsius and Babel took comparable actions.
- The trade is reasonably giant, however its choice doesn’t appear to have impacted the crypto market.
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Crypto trade CoinFLEX has paused withdrawals, including to a rising listing of crypto corporations limiting their companies.
CoinFLEX Suspends Withdrawals
In an announcement as we speak, CoinFLEX cited “extreme market conditions last 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 going through rumors of insolvency, a risk that might have an effect on a number of different crypto corporations.
In addition to halting withdrawals, CoinFLEX additionally mentioned that it will droop buying and selling of its native token FLEX Coin (FLEX). This applies each to perpetual and spot buying and selling.
The firm mentioned that it will present an replace on June 27. It goals to renew withdrawals by June 30.
Celsius Started the Trend
CoinFLEX is no less than the third crypto firm this month to cease withdrawals. Celsius started the pattern by suspending withdrawals on June 13. Babel Finance adopted go well with on June 17.
Additionally, Bancor paused an investor safety program known as Impermanent Loss Protection as a consequence of hostile market situations. It didn’t droop withdrawals, not like the others.
CoinFLEX is a reasonably giant trade. It dealt with a buying and selling quantity of $500 million to $1.5 billion over the previous 24 hours.
That mentioned, the trade 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 choice.
Still, the truth that Coinflex determined to close down companies might affect different corporations to comply with go well with.
Disclosure: At the time of writing, the writer of this piece owned BTC, ETH, and different cryptocurrencies.