CoinFlex, which had liquidity problems after a customer did not pay its debt of $ 47 million and stopped withdrawals since June 23, announced 2 possible exit scenarios they have prepared for their customers.
CoinFlex has announced its new product “Recovery Value USD” (rvUSD) in order to reactivate withdrawals and compensate its customers’ losses. This product, which is basically like a derivative “factoring” application, aims to sell 47 million dollars of debt to investors.
CoinFlex in its rvUSD whitepaper product features and possible exit scenarios. mentioned. According to this;
- Product Only It will be sold to qualified investors residing outside the United States.
- Minimum purchase 100,000 USDC amount will be.
- Annual return 20% and the returns will be reflected in the investors’ account on a daily basis.
by CoinFlex 2.5 million FLEX coins, will be reserved for distribution to rvUSD investors, FLEX coins will be distributed to investors in proportion to their investment, if the borrower pays off his debt in full. If the borrower partially pays his debt, FLEX coins will be distributed to investors in proportion to the payment received. FLEX payments are made after the borrower partially or completely pays off the debt. 8 months will spread over a period of time.
The company has prepared two different exit strategies for rvUSD investors as main and secondary;
The main strategy;
Income arising from the debtor’s payment of all or part of his debt will be converted to USDC, and rvUSD investors will be able to convert their rvUSD tokens to USDC from time to time, depending on the borrower’s payment amount.
Secondary strategy;
Debit from CoinFlex customer 15 months In case of failure to collect during the period, rvUSD will have the right to present one of two different scenarios to its investors.
- a) Mandatory conversion to USDC payable on CoinFlex balance sheet
- b) Voluntary conversion to a mix of USDC and FLEX coin to be covered in the existing CoinFlex treasury. In this option, FLEX coins 110% of the 20-day time-weighted average (maximum 11.75 million coins) will be taken into account. Investors also have the right to not choose this option and wait for the full USDC payment.
This move of CoinFlex, which is looking for a solution for liquidation, was met with reaction from market experts. US Bureau of Labor Statistics Economist Joey Politano, for this move;
“Can someone remind me of the name of the system that requires new investors to pay old investors?”
implying that the current app is a ponzi.
Many anonymous investors in the community, on the other hand, described CoinFlex issuing a new coin as a fraud, even though it does not allow its customers to get their money back.
CoinFlex 28 June – 1 July will start collecting requests for rvUSD between dates
In the recent downturn due to the liquidation crisis, one of CoinFlex’s high-profile clients borrowed $47 million from the company, dragging CoinFlex into a liquidation crisis. Struggling with liquidity problems, CoinFlex has stopped withdrawals.