{"id":468316,"date":"2022-06-28T08:26:36","date_gmt":"2022-06-28T05:26:36","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/coinflex-recovery-plan-includes-tokenized-bad-debt-and-more-yields\/"},"modified":"2022-06-28T08:26:36","modified_gmt":"2022-06-28T05:26:36","slug":"coinflex-recovery-plan-includes-tokenized-bad-debt-and-more-yields","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/coinflex-recovery-plan-includes-tokenized-bad-debt-and-more-yields\/","title":{"rendered":"# CoinFLEX recovery plan includes tokenized bad debt and more yields"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a27178972952\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a27178972952\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/coinflex-recovery-plan-includes-tokenized-bad-debt-and-more-yields\/#%E2%80%9D_CoinFLEX_recovery_plan_includes_tokenized_bad_debt_and_more_yields_%E2%80%9C\" >&#8221; CoinFLEX recovery plan includes tokenized bad debt and more yields &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_CoinFLEX_recovery_plan_includes_tokenized_bad_debt_and_more_yields_%E2%80%9C\"><\/span>&#8221; CoinFLEX recovery plan includes tokenized bad debt and more yields &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDYvMGZhZjdmZWUtMTc3Ny00NzU1LWE0NmYtODUyYTY5MWYwMzJkLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-2a0745c6>Crypto investment platform CoinFLEX aims to rectify its liquidity shortage and restart user withdrawals by selling off bad debt through a new $47 million token offering.<\/p>\n<p>The new token is known as Recovery Value USD (<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/cfv2-media.s3.ap-northeast-1.amazonaws.com\/media\/pdf\/rvUSD_Whitepaper.pdf\">rvUSD<\/a>) and will be worth $1 each. It is designed to help CoinFLEX recover $47 million in losses incurred by an account that was allowed to reach negative equity without being liquidated. It will be issued from June 28 through July 1, and the firm stated that it hopes to resume withdrawals by June 30.<\/p>\n<p>While the identity of the individual whose account went negative is still unknown, CoinFLEX CEO Mark Lamb insisted in a June 27 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coinflex.com\/blog\/coinflexs-solution-to-resume-withdrawls\/\">announcement<\/a> that the individual \u201cis a high-integrity person of significant means.\u201d What is known is that in a June 23 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/coinflex.com\/blog\/coinflex-update-on-withdrawals\/\">blog<\/a> post, Lamb blamed the individual\u2019s bad debt for halting withdrawals.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Hi everyone, we\u2019re sharing our latest update on plans for re-enabling withdrawals on the platform <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/34brwoDYuL\">https:\/\/t.co\/34brwoDYuL<\/a><\/p>\n<p>\u2014 CoinFLEX (@CoinFLEXdotcom) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CoinFLEXdotcom\/status\/1541543358581116931?ref_src=twsrc%5Etfw\">June 27, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\nUnder normal circumstances, the crypto lender liquidates accounts before they reach zero equity. However, Lamb explained that in this instance, CoinFLEX opened a one-of-a-kind \u201cnon-liquidation recourse account\u201d wherein it agreed to not liquidate the account, and the borrower agreed to keep it filled with plenty of equity. <\/p>\n<p>Things did not go according to plan as the account went negative, allegedly causing a liquidity crunch at the firm. Lamb added that this account was the only one on CoinFLEX with negative equity.<\/p>\n<p>rvUSD will be issued to non-US resident \u201cSophisticated Investors\u201d at a minimum sub<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">script<\/a>ion of $100,000 per investor. Investments come with a 20% annual percentage rate paid in rvUSD. <\/p>\n<p>A Sophisticated Investor is one who has an annual income of at least $200,000, a total net worth of at least $1 million, and has performed the Know Your Customer (KYC) procedure on CoinFLEX.<\/p>\n<p>In order to prevent this from happening again, Lamb stated that he would not issue that type of account anymore. His firm will also expand its transparency by making public the notional USD value of every account\u2019s futures positions through an external auditing firm. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">CoinFLEX CEO explains what happened and why he&#8217;s &#8220;highly confident&#8221; withdrawals will re-open June 30 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/P9GhSo6BM4\">https:\/\/t.co\/P9GhSo6BM4<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/5ERlmRNdYi\">pic.twitter.com\/5ERlmRNdYi<\/a><\/p>\n<p>\u2014 Bloomberg <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">Technology<\/a> (@technology) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/technology\/status\/1541558540107751426?ref_src=twsrc%5Etfw\">June 27, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In an interview on Bloomberg Technology with host Emily Chang on June 27, Lamb expressed his company\u2019s belated need for more transparency. He feels that his firm should emulate the transparency that major decentralized finance (DeFi) firms have come to exemplify. He said, \u201cWe need to do at least as good as, if not, much better than DeFi with respect to transparency.\u201d<\/p>\n<blockquote><p>\u201cIt has a damage to privacy, but we think that traders are going to find that worthwhile for the additional comfort that they get from knowing the risk and the leverage implicit in the system.\u201d<\/p><\/blockquote>\n<p>CoinFLEX is just the latest in a growing list of centralized financial institutions and investment firms in crypto that have faced public criticism for potential insolvency. Most notable among this beleaguered group is Three Arrows Capital, led by Su Zhu and Kyle Davies, the Celsius crypto lending platform led by Alex Mashinsky, and crypto lender BlockFi led by Zac Prince. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Crypto exchange FTX is looking into acquiring Robinhood: Report<\/em><\/strong><\/p>\n<p>CoinFLEX\u2019s native token, FLEX Coin (FLEX), has taken a beating over the past four days by dropping 77% to $0.99 as of the time of writing, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.coingecko.com\/en\/coins\/flex-coin\">according<\/a> to CoinGecko.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/coinflex-recovery-plan-includes-tokenized-bad-debt-and-more-yields\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; CoinFLEX recovery plan includes tokenized bad debt and more yields &#8220; Crypto investment platform CoinFLEX aims to rectify its liquidity shortage and restart user withdrawals by selling off bad debt through a new $47 million token offering. The new token is known as Recovery Value USD (rvUSD) and will be worth $1 each. It&#8230;<\/p>\n","protected":false},"author":1,"featured_media":468317,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDYvMGZhZjdmZWUtMTc3Ny00NzU1LWE0NmYtODUyYTY5MWYwMzJkLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,129187,77595,117],"class_list":["post-468316","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-cefi","tag-lending","tag-business"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/468316","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=468316"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/468316\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/468317"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=468316"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=468316"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=468316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}