CoinFLEX's USD 47M Recovery Token Plan Questioned by Crypto Observers
Source: Adobe/Web Buttons Inc Crypto derivatives exchange and yield platform CoinFLEX aims to turn the debt of a " high integrity " individual into a token called Recovery Value USD (rvUSD) in order to fund other customers' withdrawals . Not everyone is impressed with these plans. The exchange will issue rvUSD 47m at a price of USDC 1 per coin, cumulatively raising USD 47m. Potential buyers will be offered a 20% Annual Percentage Rate (APR) rate in addition to other perks, including 2.5M FLEX coins (USD 2.3m) distributed proportionally across all holders. Meanwhile, a number of industry observers were quick to argue that there are resemblances between the plan and Ponzi schemes. "Can anyone remind me, what's that thing called where you need new investors in order to pay out old investors?" said Joey Politano, an economist and a Financial Management Analyst at the US Bureau of Labor Statistics . "Lent money and can’t get the debt ...