The crypto derivatives trading platform that stopped withdrawals last week will issue the tokens that can be exchanged into USDC or its own coin.

The exchange said, “rvUSD” tokens issued by CoinFLEX towards an outstanding debt owed by an unnamed high-net-worth individual.

As part of the agreement with the exchange, the longtime customer has personally guaranteed to make up for any shortfall in his account in event of a market downturn.

 CoinFLEX said the individual is a “high integrity person of significant means” with “significant shareholdings” in several unicorn private companies and a large portfolio. The individual is “experiencing temporary liquidity issues due to a credit and price crunch in markets,” it added.

On a one-on-one basis, investors will be able to swap their tokens for USD Coin (USDC). They can opt to convert their tokens into a mixture of USDC and FLEX Coins or wait for full repayment in USDC, if the repayment takes more than 15 months.

Token holders will be paid an annual interest of 20% in rvUSD daily, according to CoinFLEX.

CoinFLEX will pay back token holders out of its balance sheet in case of  individual defaults, with 2.5 million units of FLEX Coins being set aside for this issuance.

Due to extreme market conditions and uncertainty involving a counterparty, CoinFLEX had suspended withdrawals.


Like it? Share with your friends!

What's Your Reaction?

lol lol
40
lol
omg omg
25
omg
win win
10
win
fail fail
10
fail
love love
35
love
wtf wtf
5
wtf
cute cute
20
cute
scary scary
20
scary

Leave a Reply

Please Login to comment
  Subscribe  
Notify of