CoinFLEX Imitates Celsius to Suspend Withdrawal

06/24/2022By: C, Fiona

The CoinFLEX exchange may keep the withdrawal closed until the end of the month.

Abstract

  • CoinFLEX, a cryptocurrency exchange, has suspended customer withdrawals due to poor market conditions.
  • CoinFLEX is at least the third company to restrict services after Celsius and Babel took similar actions this month.
  • The size of the exchange is moderate, but its decision does not seem to have affected the cryptocurrency market.

CoinFLEX, a cryptocurrency exchange, has suspended withdrawals, adding to the list of more and more cryptocurrency companies restricting their services.

 

CoinFLEX Pauses Withdrawal

In a statement today, CoinFLEX cited “last week’s extreme market conditions [and] continued uncertainty involving a counterparty” as its reason for suspending all withdrawals.

CoinFLEX added that the counterparties in question were not 3 arrows capital or any other lending company. 3 arrows capital, a cryptocurrency hedge fund, is facing rumors of bankruptcy, which may affect several other cryptocurrency companies.

In addition to stopping withdrawals, CoinFLEX also said that it would suspend the transaction of its native token FLEX Coin (FLEX). This applies to both permanent and spot transactions.
The company said it would provide an update on June 27. Its goal is to resume withdrawals by June 30.

 

Celsius Started this Trend

CoinFLEX is at least the third cryptocurrency company to stop withdrawing funds this month. Celsius suspended withdrawals on June 13, starting this trend. Babel Finance followed suit on June 17.

In addition, due to poor market conditions, Bancor suspended an investor protection plan called “Impermanent Loss Protection”. Unlike other companies, it has not suspended withdrawals.

CoinFLEX is a medium-sized exchange. It has handled between $500million and $1.5 billion in transactions over the past 24 hours.

In other words, the exchange does not seem to be popular enough to affect investor sentiment or the market. Despite the decision of CoinFLEX, the price of bitcoin has increased by 3.4% in the past 24 hours.

Nevertheless, the fact that CoinFLEX decided to shut down the service may affect other companies to follow suit.