CoinFLEX Exchange Pauses Withdrawal Citing Extreme Market Conditions

CoinFLEX Allows Limited Withdrawal Option For Customers
  • More than $500 million to $1.5 billion was traded in the last 24 hours.
  • FLEX Coin, will be suspended in addition to the suspension of withdrawals.

CoinFLEX, a cryptocurrency exchange, has halted withdrawals, joining a growing number of companies that have done the same. CoinFLEX said today that it has suspended all withdrawals due to “extreme market conditions last week [and] continued uncertainty involving a counterparty.”

This is neither Three Arrows Capital nor any other financing business, according to CoinFLEX. The collapse of Three Arrows Capital, a crypto hedge fund, might have ramifications for many other crypto firms. CoinFLEX also announced that trade in its native cryptocurrency, FLEX Coin, will be suspended in addition to the suspension of withdrawals. This is true for both long-term and short-term trading. 

Trouble Continues For Investors 

CoinFLEX has joined the long list of firms to halt withdrawals in recent times. On June 13, Celsius put a halt to withdrawals. On June 17, Babel Finance joined the game. Another investor protection scheme called Impermanent Loss Protection was temporarily suspended owing to adverse market circumstances. Like the others, it didn’t put a hold on withdrawals.

In terms of trading volume, CoinFLEX has respectable size. More than $500 million to $1.5 billion was traded in the previous 24 hours. This is not to say that the transaction does not affect investors or the market. A 3.4 percent increase in the price of Bitcoin in 24 hours, notwithstanding CoinFLEX’s decision.

As a result, other firms may follow CoinFLEX’s lead and shut down their own services. The site said that the next update will occur on June 27, 2022, and that withdrawals may be made as soon as June 30, 2022. It was also mentioned that these dates are just approximations based on the information they have at this point. Once they get more information, they will provide updates and clarifications.

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Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.