CoinFlex Cuts Staff to Deliver 60% Cost Reduction

CoinFlex cuts staff in all departments and geographies on July 29 in order to reduce the company’s expenses by 50 to 60%. They did not say how many workers were laid off. It claimed, however, that layoffs and other cost-cutting measures would lower its costs. On the other hand, the remaining employees will focus on products and technology, and the exchange stated that they would consider scaling as volume returns.

CoinFlex Cuts Staff: Reason Explained

According to CoinFlex, the budget cuts will increase the company’s efficiency. The company hopes to remain at a level where it can form partnerships or accept a purchase offer from another company. It may, however, scale up if higher volumes are encountered.

Recovery Plans

CoinFlex suspended withdrawals on June 23 after an anonymous entity failed to meet a $47 million margin call. The company did not reopen withdrawals on June 30, as planned. On July 28, CEO Mark Lamb corroborated on Twitter that CoinFlex and Bitcoin Cash (BCH) supporter Roger Ver had a contract requiring him to ensure any negative equity on his CoinFlex account and regularly top up margin. Ver, conversely, refuted the allegations made in the exchange.

On July 14, it partially resumed withdrawals, allowing customers to withdraw up to 10% of their balance. It stated that it would begin investigating the aforementioned recovery strategies at that time. The CoinFlex team also informed the community that the company was in regular contact with legal counsel and the significant creditor group to work out the specifics of how to divide the CoinFlex composite, which includes equity rvUSD, and FLEX Coin. The team stated that they expected to have a clear direction on the distribution this week, so they put the idea to a vote from all depositors as soon as possible. They also pleaded for patience, stating that crucial legal and financial processes must be completed.

Announcement of Market Strategy 

CoinFlex said it would put its composite marketing strategy to a vote next week because it expects to have data on the plan’s numbers by then. The corporation considers the range of additional normal distribution and composite users are likely to obtain. This information will also allow it to open a new market for consumers to trade locked funds for unlocked balances. Users who want instant liquidity will be able to sell to other consumers who want to keep their funds with CoinFlex. The company plans to enter this market the following week.

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