Crypto exchange CoinFLEX suspended withdrawals due to market collapse

The platform’s native token FLEX is also temporarily unavailable for trading

24.06.2022 - 10:25

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What’s new? Cryptocurrency exchange CoinFLEX has suspended withdrawals from the platform. The company’s representatives argue their decision is “due to extreme market conditions.” The platform’s native token FLEX trading has also been temporarily halted. Withdrawals will resume approximately on June 30, the company noted that the timing may change.

CoinFLEX blog

What else did the company say? Another reason for the freezing of funds was cited by the exchange’s head Mark Lamb as continuing problems with an unnamed counterparty. He only noted that it was not cryptocurrency hedge fund Three Arrows Capital (3AC), which, according to The Block, is on the verge of bankruptcy. Earlier, exchanges FTX, Deribit, and BitMEX liquidated 3AC’s positions as it failed to settle margin calls.

CoinFLEX was founded in 2019. There are 42 trading pairs available for trading on the platform. The exchange also has its own stablecoin, flexUSD, pegged to the US dollar. As of June 24, 10:20 UCT, the exchange’s native token FLEX is trading at $4,3, and the coin has lost 3% of its value in the past 24 hours, according to CoinGecko.

On June 13, Celsius, a DeFi platform for lending and staking, also froze customers’ funds “due to extreme market conditions.” On June 21, the platform’s native token CEL rose by 933%. As analysts at Santiment explained, after Celsius suspended withdrawals, traders were not interested in the token for ten days, while institutional investors were buying it up, which contributed to the rise in value. CEL is now trading at $1,03, having gained 11,08% per day.

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