CoinFLEX: $47M Recovery Token to Address Withdrawal Problems
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The new coin, Recovery Value USD (rvUSD), will have a $1 value per unit. It intends to assist CoinFLEX in recouping $47 million in losses sustained by a failed attempt to liquidate an account after it fell into negative equity. The corporation announced that it would give it from June 28 through July 1 and hopes to begin withdrawals by June 30. CoinFLEX CEO Mark Lamb said in a blog post,
"We have been speaking to potential large buyers and believe there is significant interest in the terms presented,"
CoinFLEX CEO Mark Lamb maintained in a June 27 release that the person whose account turned negative "is a high-integrity person with large means," even though the person's name is still unknown.
CoinFLEX Opened Non-Liquidation Recourse Account
In most cases, the cryptocurrency lender closes accounts before they have no equity. Lamb clarified that, in this case, CoinFLEX opened a particular "non-liquidation recourse account" in which it pledged not to liquidate the account, and the borrower agreed to maintain it with a significant amount of equity. "Sophisticated Investors" who are non-US residents will receive rvUSD at a minimum subscription of $100,000 per investment. Investments have an annual percentage rate of 20% paid in rvUSD. A sophisticated investor has completed the Know Your Customer (KYC) process on CoinFLEX, earns at least $200,000 annually, and has a total net worth of at least $1 million.