Crypto

CoinFLEX follows Celsius in suspending withdrawals

key takeaways

  • Cryptocurrency exchange CoinFLEX has suspended customer withdrawals due to harsh market conditions.
  • CoinFLEX is at least the third company to limit services this month after Celsius and Babel took similar steps.
  • The exchange is moderately large, but its decision does not appear to have affected the cryptocurrency market.

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Cryptocurrency exchange CoinFLEX has paused withdrawals, adding to a growing list of cryptocurrency firms limiting their services.

CoinFLEX suspends withdrawals

In a statement today, CoinFLEX cited “extreme market conditions last week.” [and] ongoing uncertainty involving a counterparty” as your 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 cryptocurrency hedge fund facing rumors of insolvency, a possibility that could affect several other cryptocurrency companies.

In addition to stopping withdrawals, CoinFLEX also said it would suspend trading of its native FLEX Coin (FLEX) token. This applies to both perpetual and spot trading.

The company said it would provide an update on June 27. His goal is to resume withdrawals by June 30.

Celsius started the trend

CoinFLEX is at least the third cryptocurrency company this month to stop withdrawals. Celsius started the trend by suspending withdrawals on June 13. Babel Finance did the same on June 17.

In addition, Bancor stopped an investor protection program called Transient Loss Protection due to hostile market conditions. He 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 in the last 24 hours.

That said, the exchange does not appear to be popular enough to affect investor sentiment or the market. Bitcoin price rose 3.4% in the last 24 hours despite CoinFLEX’s decision.

Still, the fact that Coinflex decided to close the services may influence other companies to do the same.

Disclosure: At the time of writing, the author of this article owned BTC, ETH, and other cryptocurrencies.

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