In addition to regular Telegram and other social media communication, we will continue to provide the community with blog updates. Some will be brief but will include important information for ongoing communication about CoinFLEX.
What have we been up to this week?
When we affect the plans around the CoinFLEX Composite distributions (inclusive of rvUSD, equity and FLEX Coin), we want to be in a position, cost-wise, to make sure that we have every chance to be a successful business which begins by being a leaner business staffing-wise.
This means that we, unfortunately, had to let go of a significant number of the CoinFLEX team across all departments and geographies. The staff cuts and non-staff costs that we have made will reduce our cost base by approximately 50-60%. The majority of the team that remain are focused on product and technology, which remains the core of our business.
We will monitor costs to ensure we operate as efficiently as possible and scale as volumes come back. The intention is to remain right-sized for any entity considering a potential acquisition of or partnership opportunity with CoinFLEX.
The team is exploring new offerings that would differentiate us from other exchange products or allow us to compete with offerings we do not currently provide but could add significant value to CoinFLEX users. We welcome all of you to suggest product ideas which we can discuss and explore.
Should you be worried about being public about your ideas, feel free to DM team members so that we may discuss them further.
The key areas that we are exploring product and platform wise are:
1/ A different way to list and launch perp swaps that make it more DeFi style in nature.
2/ Increasing transparency through decentralization of custody and margining data.
Currently, we are investigating all forms of custody decentralization including regular audits or attestations of custodied funds from third parties as well as on-chain solutions. On the margining data side we are looking to publicly broadcast anonymized margin and collateral data. These are things that were in the FLEX white paper that we are returning to and will help build trust. This is an extensive undertaking and will involve many incremental steps before we can get to the final wish list of offering a pure non-custodial offering. This remains a very important challenge for us to solve as part of bringing trust back to CoinFLEX.
Distribution of the CoinFLEX Composite
We continue working with lawyers and the significant creditor group on the details around the distribution of the CoinFLEX Composite (inclusive of rvUSD, equity, and FLEX Coin) and expect to have numbers around this next week so that we can put this to a vote from all depositors as soon as possible thereafter. The delay in confirming these details is due to the significant legal and accounting procedures that need to be completed. We appreciate your patience here.
Trading of Locked Assets
Next week, we will also aim to offer the trading of locked balances versus unlocked balances, which is a difficult market to price. We are delayed in launching these markets this week because to price the assets, you also need:
- To be aware of all, or as accurate a range, of the CoinFLEX Composite you are likely to receive. Everyone needs to know the range of their CoinFLEX Composite distributions to have all the necessary information to decide if you want to place orders of unlocked versus locked assets.
- The estimated range of any further normal distribution that will be made available alongside the issuance of the CoinFLEX Composite
Mark is going on a live AMA with Hayden Otto on Saturday, July 30, at 6:00 AM UTC. You can tune in on YouTube here, and find it in our Telegram chat once the AMA goes live.
Sudhu Arumugam and Mark Lamb