Key points to remember
- CoinFLEX says it will lay off some of its workforce due to the costs of distributing its composite asset.
- By next week, the company expects to have data on the share of the CoinFLEX Composite due to each user.
- CoinFLEX initially suspended user withdrawals on June 23 and partially reopened withdrawals on July 14.
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CoinFLEX has announced that it will lay off a significant portion of its team as it tries to recover from insolvency and compensate users who cannot withdraw their funds.
CoinFLEX Announces Significant Layoffs
CoinFLEX says it will cut a large chunk of its workforce.
The company revealed today that the cost of its recovery plan, namely the distribution of the CoinFLEX Composite to its user base, necessitated “significant” staff reductions.
The composite, which will be distributed to users who hold balances with CoinFLEX, includes the company’s new Recovery Value USD (rvUSD) token, its long-running FLEX Coin (FLEX) token, and equity stakes in the company itself. .
“This [plan] means that we unfortunately had to let go of a significant number of the CoinFLEX team across all departments and geographies,” the company wrote on its blog today.
CoinFLEX added that the discounts will help it run efficiently. While it may scale if it sees higher volumes, the company aims to stay at a size at which it can easily form partnerships or accept an acquisition offer from another company.
The company did not specify how many employees would be laid off. However, he said the staff cuts and reductions in staff would reduce his cost base by 50-60%.
In today’s update, CoinFLEX also said it will put its composite distribution plan to a vote next week, as it expects to have numerical data on the plan by then. The company determines the range of composites that users are likely to receive as well as the subsequent normal distribution range.
This data will also allow it to offer another market to users involving the exchange of locked balances for unlocked balances. This will allow users who want immediate cash to sell to other customers interested in holding their funds with CoinFLEX. The firm plans to open this market next week.
CoinFLEX suspended withdrawals on June 23. He planned to reopen withdrawals on June 30 but ultimately failed.
It partially reopened withdrawals on July 14, allowing users to withdraw up to 10% of their balance. At that time, he confirmed that he would start exploring the stimulus plans above.