CoinFLEX is a crypto exchange that offers spot and futures trading. FLEX Coin is the native crypto asset of the CoinFLEX ecosystem. It grants holders exclusive benefits that enhance their trading experiences and provide trading fee discounts. The platform takes a novel approach to crypto regulations to offer futures trading opportunities to US residents. Also, FLEX Coin allows holders to cast votes via the FLEXDAO to have a say in the future direction of the company. Furthermore, FLEX has integrated the SmartBCH network to launch its FLEXUSD stablecoin. But what is Flex Coin?
The CoinFLEX crypto exchange came under significant scrutiny after pausing withdrawals for customers in 2022. The company has since sought to restructure in the Seychelles and has developed various novel strategies to navigate the turbulent crypto climate.
In this article, we’ll dive deep into the Flex Coin ecosystem. We’ll explore the CoinFLEX exchange and its various features. Also, we’ll discuss the SmartBCH network and the FLEXUSD stablecoin. Furthermore, we’ll explore the exchange’s novel approach to regulatory compliance and how it serves derivatives products to US customers.
What is CoinFLEX?
Before we address the question, “what is FLEX Coin?” let’s take a moment to discuss the CoinFLEX platform. CoinFLEX is a crypto futures exchange that aims to bridge the gap between decentralized finance (DeFi) and centralized finance (CeFi). The platform allows users to execute token swaps and interact with smart contracts from a non-custodial crypto wallet like MetaMask without counterparty risk. Also, CoinFLEX allows users to mitigate smart contract risk and gas fee fluctuations. Plus, users have complete control over their funds at all times.
Furthermore, CoinFLEX addresses some of the perceived shortcomings associated with centralized exchanges, like the misuse of customer funds, account closures, slow sign-up processes, a single point of failure, and fractional reserve lending practices. It achieves this using a centralized order matching mechanism with a trustless clearing and custody model. Users can log into their CoinFLEX accounts and access a range of crypto trading options via their non-custodial wallets. CoinFLEX offers trading options including spot, perpetual futures, and quarterly futures. Plus, CoinFLEX offers crypto derivatives services to US residents, which many exchanges have struggled to implement in the past.
Moreover, CoinFLEX uses a trusted execution environment embedded in a process as part of a multi-signature network for handling user balances. This facilitates the independent verification of transactions, liquidations, and withdrawals. Thanks to the use of zero-knowledge proofs, CoinFLEX can verify balances and positions in a privacy-preserving fashion. Accordingly, user deposits are stored across a distributed network of nodes that cannot be manipulated by any single entity.
The platform also offers a token launch service for up-and-coming projects and a range of educational material for new investors.
CoinFLEX Trading
The CoinFLEX exchange offers various crypto trading features. Users can trade spot, classic futures, and perpetual futures. Also, the platform provides exposure to a rep market and spread markets. Spot trading allows users to place limit orders and market orders and use stop losses. Also, the platform features an integrated trading chart.
Furthermore, CoinFLEX’s classic and perpetual futures contracts offer physical delivery for long and short positions. The spread market offers up to 250x spread on leveraged trading, while the repo market gives users the opportunity to invest in failing crypto projects.
AMM+
CoinFLEX’s AMM+ is a next-generation decentralized exchange (DEX) that uses the automated market maker (AMM) model to facilitate decentralized futures trading. It takes inspiration from leading DEXs like Uniswap and aims to democratize futures trading by making it accessible to all.
AMM+ applies the principles of decentralized spot trading to the futures markets. Users can implement custom strategies or select from existing ones. Plus, users can use leverage up to 10x and select from various collateral options. AMM+ increases capital efficiency by giving users access to a larger market with lower slippage and higher liquidity. It also provides lower fees than leading exchanges.
Moreover, AMM+ aims to democratize market making and make it accessible to all. It attracts more liquidity to the CoinFLEX ecosystem using a centralized order book with a decentralized AMM mechanism to combine the best parts of DeFi and CeFi.
US Crypto Regulations
Following the fallout of the FTX saga, regulators are keen to implement strategies to prevent crypto exchanges from misusing or losing customer deposits. Current crypto regulations have several loopholes that allow crypto exchanges to operate outside of the jurisdiction of their incorporation. Many in the industry predict a significant overhaul to US crypto regulations in reaction to the FTX saga. CoinFLEX aims to overcome this obstacle by proving to regulators that it cannot misuse customer deposits.
Furthermore, the CoinFLEX crypto exchange accepts US customers without the need for a derivatives clearing organization (DCO) status. The platform bypasses requirements set out by the Commodity Futures Trading Commission (CFTC) for US-based exchanges to be licensed as DCOs by physically delivering futures positions within 28 days of opening.
What is FLEX Coin?
So, what is FLEX Coin? FLEX Coin (FLEX) is the native cryptocurrency of the CoinFLEX exchange and the broader FLEX ecosystem. FLEX Coin holders gain exclusive benefits throughout the platform, including transaction fee discounts and higher referral bonuses. The more FLEX coins a user holds, the greater discount they receive on trading fees. Also, FLEX Coin holders can participate in platform governance by voting on proposals to make changes to the platform and staking via the FLEXDAO.
The FLEX Coin token burning model involves burning 10% of CoinFLEX’s revenue and profits. Also, 10% of profits and revenue are distributed to the FLEXDAO for community incentives and governance activities. At the time of writing, FLEX Coin is trading at $1.26 with a market cap of $122.7 million, according to CoinGecko. It has a circulating supply of 98.6 million out of a maximum of 100 million.
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FLEXDAO
The FLEXDAO is the decentralized autonomous organization (DAO) of the FLEX Coin ecosystem. It provides a community-driven framework for community governance and staking rewards. FLEX holders can stake their coins to participate in community governance and have a say in how the Coin FLEX ecosystem operates. Plus, the FLEXDAO has a low barrier to entry with a minimum stake of one FLEX for participation.
All FLEXDAO members receive 10% of CoinFLEX’s revenue and profits. This novel mechanism incentivizes community governance and promotes decentralization. Staking for a longer period grants participants higher staking rewards. Also, users who stake FLEX Coins receive an equal balance of veFLEX. veFLEX is a non-transferable balance linked to wallet addresses. It can’t be purchased or sold. However, veFLEX can be used to generate a yield in decentralized finance (DeFi) protocols, which is transferable.
Although the FLEXDAO serves many of the same functions as a traditional DAO, it is not fully decentralized or autonomous. However, the FLEXDAO provides an equitable environment for FLEX Coin holders to have a say in the future direction of the project.
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SmartBCH
SmartBCH is an Ethereum Virtual Machine (EVM)-compatible Bitcoin Cash sidechain and smart contract framework inspired by Bitcoin, Ethereum, and Bitcoin Cash. It builds on the infrastructure of legacy blockchain networks, combining the Bitcoin Cash dSHA256 algorithm with full Ethereum compatibility. Ethereum developers can build and deploy smart contracts on SmartBCH using familiar tooling. Also, SmartBCH optimizes hardware using a multithreaded parallel processing mechanism. Resultantly, the SmartBCH framework offers high-throughput and low transaction fees.
The SmartBCH network relies on a Proof-of-Work (PoW) consensus mechanism for verifying transactions. However, the network boasts significantly faster transaction speeds than leading PoW chains, with a six-second block confirmation time. Also, transaction fees on SmartBCH cost a fraction of a cent, making it highly scalable.
FLEXUSD
SmartBCH is the chosen network for the FLEXUSD stablecoin. CoinFLEX’s FLEXUSD uses SmartBCH’s SEP20 token standard and aims to become the first stablecoin on the SmartBCH network. Also, FLEXUSD is an interest-earning stablecoin that is fully backed by USDC. Holders can redeem their FLEXUSD for USDC at any time. Plus, holders earn interest payments three times a day.
The only way to mint FLEXUSD is by depositing USDC into the FLEXUSD smart contract. Deposits are turned into liquidity on the Repo Market that other CoinFLEX users can borrow. Every hour, borrowers pay a funding rate to lenders. In turn, this allows FLEXUSD holders to earn interest payments every eight hours, which are paid into their crypto wallets.
Liquidity Issues
In September 2022, CoinFLEX filed for restructuring in the Seychelles. The platform experienced liquidity problems which prompted a community vote to decide how the company would operate in the future. The proposal saw an allocation of 15% of company shares go to team members, while 65% went to creditors. Creditors will also receive the rvUSD recovery token, USDC, and equity in the company. In June 2022, the CoinFLEX exchange paused withdrawals after tens of millions of dollars were reportedly defaulted by a customer.
Furthermore, CoinFLEX cofounders Mark Lamb and Sudhu Arumugam have partnered with Three Arrows Capital (3AC) founders Su Zhu and Kyle Davies to develop Open Exchange, a public marketplace for crypto claims trading. 3AC filed for bankruptcy in 2022. Nevertheless, the Open Exchange project has raised $25 million in seed funding.
What is Flex Coin? Exploring FLEX and FLEXUSD - Summary
Flex Coin is the native crypto asset of the CoinFLEX crypto exchange. It helps to bridge the gap between CeFi and DeFi while providing traders with exclusive benefits. While CoinFLEX has come under fire in recent months due to poor liquidity, the team continues to drive for further adoption.
The CoinFLEX exchange boasts a range of trading options for futures and spot trading. Also, the platform offers a token launch service to make it easy for new projects to launch crypto assets. Nonetheless, the recent liquidity issues have negatively impacted investor confidence. Moreover, it remains to be seen how the platform will recover from the recent turbulence.
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