Top crypto exchange CoinFlex plans to restart withdrawals after introducing a new token, Recovery Value USD (rvUSD), that would provide customers with 20% yearly returns, the exchange revealed in a whitepaper on June 27.
CoinFlex intends to release $47 million in rvUSD beginning June 28 to aid with liquidity concerns, with withdrawals expected to resume by June 30, depending on demand for the new coin.
When questioned about the possibility of a bank run, CoinFlex CEO, Mark Lamb, said that it is very improbable since consumers may withdraw cash soon once the token issue is completed.
The move comes only a few days after CoinFlex became the latest cryptocurrency company to suspend withdrawals. Withdrawals were halted when a high-net-worth client failed to clear a $47 million loan.
Last Thursday, the CoinFlex exchange, which focuses on derivatives trading, halted withdrawals, stating that an individual with “significant shareholdings in many unicorn private firms and a huge portfolio” was experiencing liquidity troubles and couldn’t fulfil their bill.
The CEO did not identify the person, but said that CoinFlex thinks this obligation represents a little amount of the counterparty assets.
However, this user’s account has a non-liquidation option. It further said that no other account had negative equity.
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