CoinFLEX has announced that it will lay off a significant portion of its workforce in order to recover from insolvency and compensate users who are unable to withdraw funds.
CoinFLEX has announced significant job cuts
The company revealed today that the cost of its recovery strategy, specifically the distribution of the CoinFLEX Composite to its user base, has necessitated “significant” staff reductions.
The composite, which will be distributed to CoinFLEX users with balances, consists of the company’s new Recovery Value USD token (rvUSD), its long-standing FLEX Coin token (FLEX), and shares of equity in the company itself.
“Unfortunately, we had to let go of a significant number of the CoinFLEX team across all departments and geographies as a result of this [plan],” the company wrote on its blog today.
CoinFLEX also stated that the cuts will help it operate more efficiently. Though it may expand if volumes increase, the company’s goal is to remain small enough to easily form partnerships or accept an acquisition offer from another company.
The company did not specify how many workers would be let go. However, it stated that staff reductions and non-staff reductions will reduce its cost base by 50 to 60%.
CoinFLEX also stated in today’s update that 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 is determining the composite range that users are likely to receive as well as the further normal distribution range.
This data will also enable it to provide users with another market for trading locked balances against unlocked balances.
This will allow users who require immediate liquidity to sell to other customers who wish to keep their funds with CoinFLEX. The company intends to open this market the following week. On June 23, CoinFLEX suspended withdrawals. It planned to reopen withdrawals on June 30, but failed.
To read our blog on “Roger Ver issues a ‘disappointing’ statement on the CoinFLEX saga,” click here
