CoinFlex cuts staff amid plans to reduce costs

CoinFlex has announced that it is cutting its workers to eliminate excess costs amid the dwindling crypto market. In a blog post that was culled off the exchange’s official website, the exchange announced that some staff across different countries had been relieved of their duties. As per the post, the move will enable the company to save about 60% in overall costs. Meanwhile, staff not affected will be committed to bettering the company’s products.

CEO Lamb blames issues on Roger Ver

In the blog post, CoinFlex also mentioned that it would put in more effort to make scaling seamless, with the company expecting volumes to return soon. In its statement, the company noted that it wants to remain in good shape pending when there is an offer for the acquisition or when another company comes along to offer a partnership.

CoinFlex announced last Saturday that withdrawals were suspended following one of the partner’s failure to match a margin call of about $47 million. Some hours later, CEO of the exchange Mark Lamb took to Twitter to confirm that the company had previously entered into a contract with Roger Ver to help top up margin. However, Roger Ver, who has been vocal in his support for Bitcoin Cash, has denied all the claims put forward by the CEO.

CoinFlex promises to fix liquidity issues

Although the company allowed some users to take out their funds from the platform, others were not convinced about the issues on the exchange. According to records, CoinFlex might be about $84 million in red as the company has commenced arbitration in Asia. After it announced the suspension of withdrawals, CoinFlex said it would fix the liquidity issue by issuing a new coin. Although the company is yet to make an official move concerning the new token, it noted that all are still in the works to release it in the coming days.

It noted that there are still consultations with their legal representative and other parties as they continue to look into ways to fashion out the distribution procedure of the token. It also noted that it is looking at having numbers on this which depositors will vote on before carrying out anything. The market condition has been a hard experience for companies and traders alike. Although things are returning to shape, companies still feel the harsh effects of the market slump.