Casey Wagner

<div id="highlights-block_62ba28f93922d" class="highlights">
 <ul>
 <li>CoinFLEX hopes to raise $47 million with a new token</li>
 <li>If all funds are raised, customers will be able to withdrawal in full</li>
 </ul>
 
</div>



Four days after suspending withdrawals following an unnamed counterparty’s unmet margin call, cryptocurrency exchange CoinFLEX will be issuing a new token with the hopes of raising $47 million.



“We’re turning a problem into an opportunity,” Mark Lamb, CEO of CoinFLEX said during an interview with Bloomberg Monday.&nbsp;



The token will have a 20% yield, and, if the full amount of $47 million is raised, all CoinFLEX users will be able to withdraw their funds in full, Lamb said.&nbsp;



“There’s other options being made available as well — we’re going to do everything possible to ensure that users funds are made whole and withdrawals enabled,” Lamb wrote in the exchange’s <a href="https://t.me/coinflex_EN" target="_blank" rel="noreferrer noopener">Telegram</a> chat following the interview. 



When asked if there were concerns about a run risk, Lamb said these would be unfounded.&nbsp;



“We’re not worried about that scenario because upon this fundraise being concluded, everyone can withdraw,” Lamb said. “We want everything to be matched, at all times.”&nbsp;



CoinFLEX announced on June 23 that the exchange was <a href="https://cms.blockworks.co/coinflex-halts-withdrawals-citing-uncertainty-around-unnamed-counterparty/" target="_blank" rel="noreferrer noopener">halting all withdrawals</a> and trading of its in-house FLEX token. 



“Due to extreme market conditions last week &amp; continued uncertainty involving a counterparty, today we are announcing that we are pausing all withdrawals,” the exchange <a href="https://coinflex.com/blog/coinflex-update-on-withdrawals/" target="_blank" rel="noreferrer noopener">wrote</a> at the time. “We fully expect to resume withdrawals in a better position as soon as possible.” 



The exchange will also pledge to make leveraged positions more transparent going forward, Lamb said.&nbsp;



“We will be making these positions public, we have an auditing firm we will be working with,” Lamb said. “This is much-needed data, there isn’t a single futures exchange in the world that makes these positions public.”&nbsp;



There’s a balance between transparency and privacy, though, Lamb noted. The exchange will not be revealing the identity of the unnamed counterparty with the unmet margin call at this time.&nbsp;



When asked if CoinFLEX might opt to sell in the event that the token issuance fails to raise the needed $47 million, Lamb responded that this was “possible,” but “we think the business is worth keeping.”&nbsp;



“Plus there’s significant interest in the token, so it’s definitely the best option,” he added.



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