FLEX, the native token of the CoinFLEX exchange, surged 21% on Tuesday after a Seychelles court approved its restructuring plan.
FLEX token price after CoinFLEX news. Source: TradingView
At launch, CoinFlex described itself as the first exchange in the world to offer physical bitcoin derivatives contracts. According to CoinFlex CEO Mark Lamb, the actual execution of contracts ensures that there will be no price manipulation in the future.
However, last June, the exchange abruptly announced a suspension of withdrawals, citing “extreme market conditions and counterparty uncertainty.”
The exchange then attempted to make up for the liquidity shortfall and restart user withdrawals through a newly issued $47 million token sale of bad debt. In September of the same year, the exchange proposed restructuring as part of a plan to improve its financial position.
CoinFLEX said a written ruling from a court in Seychelles, where the exchange is registered, could be published as soon as this week. Trading on CoinFLEX, including LUSD and LETH, will be suspended for 24 hours following the court order to ensure all users are fully informed of the latest developments.
In the first restructuring proposal, CoinFLEX said that creditors would own 65 percent of the company, and Series A investors would lose their shares.
It is worth noting that the two founders of CoinFLEX revealed in January 2023 that they will join forces with Kyle Davies and Su Zhu, the two founders of the bankrupt Three Arrows Capital Fund in mid-2022, to create a foundation called OPNX new deal.
OPNX estimates that this niche market is worth $20 billion and is currently untapped. OPNX is said to have raised $25 million, but the list of investors has not yet been announced.
Kyle Davies recently revealed that OPNX will buy back all assets of CoinFLEX, including human resources, technology and tokens. CoinFLEX’s FLEX will become OPNX’s official token, used to pay exchange fees, and 20% of FLEX revenue will be used to repurchase and burn FLEX tokens to create deflationary pressure and provide early incentives for users.
- CoinFlex Exchange Announces $47M New Token Issue to Address Withdrawals
- This Token on Layer 2 Shibarium Grows Over 2,700% in Just 2 Weeks
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