Could CoinFlex Be Playing a Dirty Game?
Disclaimer: opened for discussion and reflect my own opinions about the situation, everyone have the right to correct anything on the article.
And,
Some good developments on this:
https://mobile.twitter.com/rogerkver/status/1541822377461415936
CoinFlex clarify:
https://mobile.twitter.com/MarkDavidLamb/status/1541831697787928576?s=20&t=U2KaCGPpkmIEwzOcpqeCrA
In a new boom development Mark Lamb, CEO from CoinFlex clarifies that Roger Ver is the counterpart that owes $47 millions to the exchange platform. The news release found the community "literally with the pants down" as no one expected that! More developments in the upcoming hours.
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An exchange loses credibility by citing statements that do not enter the investor/user's mind and ruining it at once with the achievements that it has been working hard to maintain. I believe that the operator has good intentions, but also remember that hell is full of good intentions, and that also when they commit to release an announcement of what is happening with the platform is not an opportunity to launch a new currency (bail out) to help themselves to get out of the suffocation involved!
Who will buy the new token, other than the same ones who have hostage money on the platform? Why, instead of arranging an interview with Bloomberg to announce the 'new token', didn't those responsible for the platform do an AMA "ask me anything" on Telegram and listen to users who have invested considerable sums in the Platform? The Bloomberg interview was not a smart move because it left many doubts hanging in the air and huge unanswered questions such as:
Who is the individual investor who put up such a huge platform with a loss of 48 million dollars?
Where is the emergency fund to address this type of situation?
Really, what is the problem that the platform faces to stop the withdrawals and much more...
By stopping withdrawals and barring the movement of investment in and out from SmartBCH, CoinFlex is literally holding thousands of side-chain users hostage who have entrusted their money to the trading platform. It is true that the reputation of the CEO as well as the companies backing up them are above challenge, but reputation dies and the issues that many are chasing today are justifiable because out of nowhere they unilaterally decided to stop cashouts.
Today they are launching a new product that will serve as a bailout for withdrawals scheduled for the 30th, but who can guarantee that the same users/investors who have their money locked up in the exchange will adhere to it? They may even want to do it but we also have to be fair and believe that most may not have the money to buy the new product because the money they have is in CoinFlex's custody!
What doesn't get out of my head and makes me uneasy is realizing that CoinFlex, a big sized PlaTform, it may have been put on standby by a single customer who left with a loss of millions, raising many questions in my head after all, they are in the market for years and they certainly has an emergency plan when these cases happen and not leaving customers with uncertainties about the money they invested. This bailout policy with the introduction of a new product is sure to be a last stand and also a desperate form of exchange distress call.
I will not forget the commitment that the CEO of CoinFlex exerts and continues to exert in the Bitcoin Cash community, which is good, but the lack of transparency about what really affects the platform by claiming what he claimed, leaves investors with many doubts! Transparency, in addition to being good, is also a strong point for understanding between parties. By announcing that they would keep the community updated and on the 27th, suddenly announcing an interview and consequently introducing a new product on the market, definitely raised a red flag in the entire crypto community.
In the past years and for those who are in the same, we have already seen PlaTforms die out of nowhere, some for suffering from hacking, others for mismanagement and lack of transparency or even others that became scams over time!
It is normal for the community to be restless, and I blame ourselves at least as far as SmartBCH is concerned because we accept CoinFlex as the central custodian of Bitcoin Cash flowing in and out of SmartBCH while we know in advance that 'all money held by a wallet that is not ours, practically does not belong to us, not your keys not your crypto" we trust blindly and today the result, we are hostages to our own money.
I believe however that CoinFlex will solve the problem but the damage has been done and reputation has been damaged. The exchange leaves here with an impeccable reputation for years with a pretty big stain and, if it doesn’t run to solve this even if it solves it and withdrawals are resumed until June 30th, the exchange runs the river of never regaining the credibility it once had. it held until the day it decided to stop the withdrawals.
It is urgent to resolve this issue with withdrawals and reduce the stain that is increasing in the reputation market, the introduction of a new product as a bail out is, in my opinion, a fiasco and denotes internal problems in addition to those previously announced, the lack of transparency a flag network and the announcement of a new product is a real flagrant that the exchange needs help.
If, in fact, none of what has been mentioned here is relevant to the analysis and on June 30th the withdrawals are summarized, I will make a retraction praising the good work developed by the company and that it is clear, Mark is an excellent entrepreneur but he does not work alone and at the end of the day, he will be the only one who will suffer the public consequences of the company's failure.
However, we'll keep hoping that it's just a phase and that everything goes back to normal on the 30th, all fingers crossed for that!
Note: Mark Lamb is an unavoidable figure in the Bitcoin Cash space, but the problems that CoinFlex is facing jeopardize the credibility and reputation of the venture he directs and affect his figure as a person, however, the Bitcoin Cash community is waiting for an understandable clarification and not a release of vague words regarding the situation, and another thing I continue to believe in Mark as a staunch supporter of Bitcoin Cash but also not blind to see that the situation is going from bad to worse on the Exchange.
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I shall wait for recovery of BCH. Although we all dropped to 10%. We should give chance to Coinflex and make article about twice support as more needed n! Uni