According to the exchange, the goal is to stay appropriately scaled for any organization considering a future purchase of or cooperation opportunity with CoinFLEX.
A “substantial number” of staff employees have been reduced, according to cryptocurrency exchange CoinFLEX, in an effort to save operational expenses.
In a blog post published on Friday, CoinFLEX said it has reduced some workers across “all departments and regions” as part of efforts to slash expenses by 50 to 60 percent. The exchange stated that it will explore growing as “volume comes back,” with the majority of the remaining team members concentrating on product and technology.
“The intention is to remain right-sized for any entity considering a potential acquisition of or partnership opportunity with CoinFLEX,” said the exchange.
After an unidentified party allegedly failed to fulfill a $47 million margin call on Saturday, the crypto exchange stopped accepting withdrawals. Later, CEO Mark Lamb confirmed on Twitter that CoinFLEX and proponent of Bitcoin Cash (BCH) Roger Ver had a contractual agreement “requiring him to personally guarantee any negative equity on his CoinFLEX account and top up margin on a regular basis.” Ver refuted the assertions made by the exchange.
Many users have raised worries about CoinFLEX’s liquidity in light of ongoing bankruptcy troubles like Three Arrows Capital, Voyager Digital, and Celsius Network, even though CoinFLEX partly allowed customer withdrawals on July 14. Later calculations indicated that the exchange may have a shortfall of up to $84 million, for which the company has commenced arbitration proceedings in Hong Kong.
Following the suspension of withdrawals, CoinFLEX first declared that it intended to create a new currency called Recovery Value USD in order to address its lack of liquidity (rvUSD). The exchange said on Friday that it still intended to proceed with the recovery plan, even if no tokens had yet been delivered as of the time of publication:
“We continue working with lawyers and the significant creditor group on the details around the distribution of the CoinFLEX Composite (inclusive of rvUSD, equity, and FLEX Coin) and expect to have numbers around this next week so that we can put this to a vote from all depositors as soon as possible thereafter.”