CoinFLEX Suspends Withdrawals
In a statement today, CoinFLEX cited “extreme market conditions last week [and] continued uncertainty involving a counterparty” as its reason for pausing all withdrawals.
CoinFLEX added that the counterparty in question is not 3 Arrows Capital or any other lending firm. 3 Arrows Capital is a crypto hedge fund that is facing rumors of insolvency, a possibility that could affect several other crypto companies.
In addition to halting withdrawals, CoinFLEX also said that it would suspend trading of its native token FLEX Coin (FLEX). This applies both to perpetual and spot trading.
The company said that it would provide an update on June 27. It aims to resume withdrawals by June 30.
Celsius Started the Trend
CoinFLEX is at least the third crypto company this month to stop withdrawals. Celsius began the trend by suspending withdrawals on June 13. Babel Finance followed suit on June 17.
Additionally, Bancor paused an investor protection program called Impermanent Loss Protection due to hostile market conditions. It did not suspend withdrawals, unlike the others.
CoinFLEX is a moderately large exchange. It handled a trading volume of $500 million to $1.5 billion over the past 24 hours.
That said, the exchange does not seem to be popular enough to impact investor sentiments or the market. The price of Bitcoin is up 3.4% over the past 24 hours despite CoinFLEX’s decision.
Still, the fact that Coinflex decided to shut down services may influence other companies to follow suit.