Updating its users on the latest for the week, cryptocurrency exchange CoinFLEX has announced that it is cutting down on its staff strength.
The retrenchment process will run across its various departments and geographic locations. This is all in a bid to reduce its running cost and focus its funds on its core business after the distribution of the CoinFLEX Composites.
The CoinFLEX Composite is inclusive of rvUSD, equity, and FLEX Coin. The exchange has been working on these CoinFLEX Composites for a while now. The process involved several lawyers and a significant creditor’s group putting up strategies for their distributions. The plans are yet to be perfected but will be in the near term.
After the distribution of these Composites, it is suspected that the business might not run smoothly for a lack of funds. Therefore, the need to become a leaner business staffing-wise. It’s quite unfortunate but necessary for the exchange to let go of a significant number of its employees. Estimated, the cut will reduce CoinFLEX’s cost base by almost 50-60%.
Key members of CoinFLEX’s staff will be retained on its team. The remaining staff will focus their research and outputs on products and technology. The firm will fix structures in place to monitor its cost and scaling process to ensure efficiency. CoinFLEX wishes to be prepared with the right workforce and economy size, in readiness for an acquisition or partnership with any entity.
The updated details of the CoinFLEX Composite distribution will be published next week. So far, its delay is associated with significant legal and accounting procedures which need to be completed.
CoinFLEX Introduces New Token
In the thickness of the crypto winter, CoinFLEX had to halt withdrawals on its platform. Although there were suspicions that it was not only due to the extreme market conditions but also from issues involving a counterparty. Soon after, the withdrawal suspension, CoinFLEX revealed its plan to raise funds by issuing a new token.
The new token “Recovery Value USD” (rvUSD) which is one of the CoinFLEX Composite offers a 20% annual percentage rate (APR). Ultimately, this is a strategy to offset the $47 million debt owed by a high-profile investor known as Bitcoin (BTC) Jesus.
CoinFLEX plans to keep working to remain afloat in the current crypto economy.
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