Crypto lending firm CoinFLEX has announced its plan to launch new tokens after halting withdrawals.
CoinFLEX announced its plans to launch tokens on Monday. The move comes just four days after the company announced it was stopping its withdrawals. The company announced on June 23 that it paused all withdrawals due to “extreme market conditions and ongoing uncertainty with the parties”.
The platform now plans to raise funds by issuing a new token that promises 20% annual returns so it can restart withdrawals. The company, which will begin issuing $47 million worth of tokens, hopes to restart withdrawals from June 30 based on sales.
After the collapse of Terra’s UST stablecoin, which promises returns of more than 20%, last month, assets promising returns above this level have drawn suspicion.
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