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CoinFLEX Crypto Exchange and the FLEX Token

Exchange

btcmanager.com 03 May 2022 04:32, UTC
  
Reading time: ~10 m

CoinFLEX is a centralized exchange committed to providing retail and institutional investors with an easily accessible platform to earn and trade digital assets. The exchange stands as the second-largest globally in terms of daily transaction volume facilitating the trade of cryptos worth over $4.6B daily.

The 2019 launched exchange has experienced one of the most remarkable growth since its launch due to the efforts of its founding team to promote the spirit of crypto (inclusion). It became the first centralized exchange to launch a Decentralized Autonomous Organization / DAO (the FLEXDAO), showing its efforts to empower crypto investors. 

The exchange continues the mission of empowering its users by distributing part of its revenue through the FLEXDAO. It distributes 10% daily revenue and 10% quarterly revenue to its stakers on FLEXDAO. It also aims to grow collectively via focussing on community feedback and decentralizing part of its decision-making process. These moves are most likely the key reason it is climbing ranks in the crypto space as other large CEXs like Binance are yet to introduce them.

The exchange also capitalizes on passive earnings like staking and yield farming, which encourages users to explore multiple means of earning from crypto. Due to these and other features, the exchange is worth looking into. Below is more information on it and its FLEX coin

Company Overview

CoinFLEX was founded in January of 2019 and became the first physically delivered crypto futures exchange. It was founded by Mark Lamb and Sudhu Arumugam. Since then, it has risen to record over $4.6B in daily transaction volumes as of April 2022. 

The exchange launched its native coin FLEX in July of that year, followed by the launch of deliverable perpetual futures and repo market a year later. In the same year (2020), the exchange launched its stablecoin flexUSD. Since then, the stablecoin has gained the attention of many hitting a market cap of over $400M in January 2022. 

The exchange released the whitepaper for FLEX 2.0 in May 2021 and an AMM+ a month later. By August, the exchange had recorded a daily transaction volume of over $2B with an open interest of over $100M and made CoinFLEX the bridge for SmartBCH. 

The exchange has had other accomplishments which have brought it to what it is today. 

FLEX Coin

FLEX Coin is the native token of the CoinFLEX crypto exchange. It was launched in July 2019. It powers CoinFLEX, and the exchange claims that it has a total daily trading volume of between 200-400M.

The coin allows users to join FLEXDAO. A user has to stake a minimum of 1 FLEX to join the DAO. After joining, users are entitled to 10% of the exchange’s daily revenue and 10% of the exchange’s quarterly revenue. This utility of the token gives it a real-life use case, thus greatly influencing its supply and demand dynamics.

Flex Coin Price Prediction

FLEX price is $3.80 with a 24-hour transaction volume of slightly above $1B. According to its market capitalization, it ranks at number 2830 on the CoinMarketCap listing. The coin has a maximum supply of 100M, but the exchange has not provided its actual circulating supply. It trades at different exchanges like CoinFLEX, AscendEX, FMFW.io, etc.

The coin has the potential to hit higher prices in the future as long as coinFLEX continues posting outstanding results against other exchanges. Also, it seems to be transitioning to a DEX even though partially through projects like the FLEXDAO, which is a cut above the other CEXs. 

Therefore, it might be good to buy some FLEX and lock them on the exchange’s staking protocol to be part of the FLEX DAO. However, it is advisable to pass through all the terms and conditions of staking with the exchange. Also, invest in the crypto space with caution as its products come with risks.

Key Features

FLEXDAO

CoinFLEX shook the crypto space by becoming the first CEX to launch a DAO. It showed its efforts to uphold some crypto space values like inclusion. It shares part of its revenue with its DAO members and plans to include them in some decision-making processes. Even though the exchange remains centralized, its will to compromise and create a high breed of a partially decentralized governance system outstands against other major CEXs like Coinbase and Binance.

Staking

To join FLEXDAO, a user is required to stake at least 1 FLEX. In so doing, they earn passively from the exchange and will soon get privileges like being included in some decision-making processes of the exchange in the future. The exchange allows for the staking of FLEX over two weeks, four weeks, two months, three months, six months, one year, two years, three years, and four years.

AMM+ Protocol

The exchange launched an AMM+ (Automated Market Maker) platform to allow for the earning of yields by its users. It later launched a second iteration of the protocol in January 2022 to make the yields more accessible to investors daily.

Its latest AMM+ protocol is also optimized to emphasize the educational user experience and equip users with the necessary skills to explore different markets in the crypto space.

Yield Farming

The AMM+ protocol that CoinFLEX has introduced is a rival to the well-known DeFi AMMs. It allows users to provide liquidity by staking their FLEX trading pairs in the CeFi (Centralized finance). It allows users to lock their savings on pools with different APRs and on different locking periods while tracking the development surrounding their savings.

The Repo Market

In June 2020, CoinFLEX launched its Repo market to allow users to access highly liquid lending, borrowing, and earning options much easier. This architecture is a direct rival to the Decentralized Finance protocols that feature such services. Additionally, it is a score to the exchange as a CEX as it increases the span of its services. 

According to the CEO of the exchange, Mark Lamb: 

“The creation of the repo market is a direct response to market demand for fair, transparent and flexible trading for all market participants. Introducing deliverable perpetual futures gives traders access to highly liquid, leveraged derivatives with the option to choose delivery, which also allows a new risk mitigation tool for investors.”

How Does Coinflex Work?

CoinFLEX has a simple user interface and works in a way that is almost a high breed of DEXs and CEXs. It does not require its users to fill in their AML/KYC details akin to most DEXs like SushiSwap and Uniswap. 

It also allows its users to create sub-accounts to manage the people they allow to view their trading accounts. These subaccounts can be customized to allow only given operations. It also has lower fees as compared to its competitors (0.02% for makers and 0.07% for takers).

However, the exchange does not work with US investors due to the issues surrounding the offering of securities and other digital assets without using Anti Money Laundering/ Know Your Customer ( AML/KYC) protocols.  

Staking FLEX on Options AMM+ Protocol

CoinFLEX has an Options AMM+ protocol that allows users to participate by staking their FLEX. Here is how the exchange explains the working of the staking in the AMM

“If the AMM account has 9900 FLEX in it so far and a user stakes 100 FLEX, they are entitled to 1% of the FLEX in the Options AMM account. As new stakers come in, they will dilute the % of existing stakers, so for example if another 10,000 FLEX is staked on top of the first 10,000, then the 100 FLEX staker would go from 1% entitlement to 0.5%.”

The exchange does not take any commission from the Options AMM but has clarified that it plans to institute up to a 50% commission within the first 3 to 6 months of its operations.

The AMM works like a lottery, but the exchange has clarified that it is not betting against its customers. It has explained that the Options AMM is the risk-taking account that allows traders to access fluent pricing on options in several cryptos over time. Also, the protocol is built to make up for huge losses if allowed to run for long. This edge comes when large numbers of transactions on the protocol are considered.

Therefore, the stakers risk their FLEX holdings for that edge, but if it gets too high and traders become disinterested, it can be adjusted to make maximum returns. 

The exchange also launches options on other assets like ETH, BTC, ADA, LINK, XTZ, and VET. These options will still be powered by FLEX Coin, which will serve as the collateral and PNL. This form of staking will be necessary for the exchange to continue building on its CeFi project.

The exchange is also launching two more forms of staking as well:

  • FLEX/FLEX staking where if you lock up 1000 FLEX, you can earn a specific amount of FLEX per month, initially set to 40 FLEX per month. We may change this based on supply, demand, and the other forms of staking but will give at least a month’s notice before any change.
  • Staking into the Insurance Pool and growing your FLEX with successful liquidations on the platform.

Is It Safe to Trade Using Coinflex

CoinFLEX uses several high-level security measures to safeguard its users from cyber-attacks and other security issues. It has two-factor authorization (2FA) protocol to add security to login procedures. It also keeps 99% of its funds offline in cold storage wallets and 1% only on-site to allow for the smooth running of day-to-day transactions.

This policy allows the exchange to be safe from losing huge amounts of money if an attack happens. According to the exchange, this policy also ensures that no attack could ever compromise the integrity of users’ holdings.

It also has a “Transport Layer Security” protocol that safeguards the user information passed in the exchange. The exchange also claims that the user information collected in the exchange is kept in a database secured by high-tech security measures including 2FA protocols.

Although the exchange has all these security features, it is best to adhere to normal measures of protecting yourself in the crypto space. Also, follow the exchange’s security protocols keenly to avoid creating security loopholes.

How Does Coinflex Compare to Its Competitors

As the second-largest crypto exchange in April 2022 in terms of daily transaction volume, CoinFLEX compares well with almost every available crypto exchange. Here is how it compares with the best crypto exchange in daily trading volume, Binance:

Binance vs. CoinFLEX

  • CoinFLEX has the upper hand against Binance in that it has lower trading fees. Its maker/ taker fees range between 0.02% to 0.07% while Binance tops 0.1% for market takers.
  • CoinFLEX was the first CEX to launch a DAO. It upholds decentralization better than Binance and utilizes an AMM to power its operations in Ce-DeFi both of which Binance lacks.
  • Binance has a higher trading volume than CoinFLEX, which translates to having better liquidity. 
  • Also, Binance has more options of earning passively from cryptos. Notably, its methods of passive earning are less riskier than CoinFLEX’s Options AMM FLEX staking and yield farming.

Final Word

CoinFLEX is one of the best crypto exchanges which a trader could ever need. It has many attractive features to crypto enthusiasts but needs to improve on some. The exchange has low fees and good liquidity, making it stand out against most crypto exchanges. It also has an AMM that allows it to offer services like common lending in the DeFi sector.

However, the exchange should improve on features like staking. Its staking is a high breed of liquidity mining and lottery staking where users bet their holdings. It is one of the riskiest staking methods in the crypto space due to its reliance on a betting mechanism. However, it has stated that it is exploring newer options to improve staking FLEX.

Since the exchange seems to incline a lot toward replicating what DEXs in the DeFi sector offer, it is advisable to research on the same. It has already introduced DAO, CeFi, Staking, Crypto Lending services, and many more DeFi-related options. This development shows that the exchange believes in DeFi.

Also, the increase in the span of its services may signal its interest in maintaining the diversity of services offered. In the crypto space, diversity is very important. All crypto enthusiasts should learn how to diversify their portfolios and methods of earning from cryptocurrencies. All crypto enthusiasts should explore other options like derivatives trading, staking, yield farming lending and bowling, Liquidity mining, etc.

However, it is best to note that the crypto space is risky and thus necessitates good research to keep updated and avoid losing funds.


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