Challenges
Meeting demand for new tokens and fast withdrawals
CoinFLEX relies on its ability to issue new tokens quickly in response to user requests and new market opportunities.
If these requests aren’t fulfilled quickly, CoinFLEX loses its first-mover advantage, which negatively impacts customer satisfaction levels and increases the risk of CoinFLEX losing new customers to competing exchanges.
CoinFLEX had been using a well-known multi-sig crypto custodian vendor for years but grew frustrated with the vendor’s inflexibility when issuing new tokens.
In addition, the existing vendor had limited automation capability, which hindered CoinFLEX’s ability to quickly and easily move assets to enable faster withdrawals for its customers.
So CoinFLEX started looking for an infrastructure platform that could support new tokens quickly and set a new, higher bar for withdrawal speeds in the industry.
Solution
Fireblocks’ quick new token turnaround, omnibus wallets, and automation for faster withdrawals
After surveying the market, CoinFLEX decided to partner with Fireblocks as its crypto custody infrastructure solution.
Sudhu Arumugam, Co-founder of CoinFLEX, was immediately impressed with Fireblocks’ responsiveness. When CoinFLEX wanted to issue Bitcoin Cash tokens on smartBCH, an unknown smartchain at the time, Fireblocks accepted the challenge without hesitation.
Fireblocks also set new time-to-issue standards for ERC20 tokens, committing to—and consistently meeting—a 24-hour turnaround.
The ability to quickly issue new tokens has improved CoinFLEX’s customer satisfaction levels.
Community engagement and trust have also increased now that CoinFLEX can accurately predict—and communicate to users—when new token requests will be fulfilled.
Sudhu also likes how Fireblocks enables faster customer withdrawals through its robust APIs, omnibus wallet structures, and customizable, automated policies.
Further, Sudhu is excited about Fireblocks’ new Off-Exchange Settlement feature, which will be released in 2022. This feature will allow CoinFLEX users to allocate funds off-chain easily while trading instantly with CoinFLEX. Sudhu predicts this feature will help CoinFLEX and other Fireblocks customers save on gas fees while significantly improving security—both of which will fuel CoinFLEX’s growth even more this year.
As a derivatives exchange, we need to offer hundreds of coins, not just a handful. We needed a partner that understood our needs and had the courage to grow with us.
Results
400% user growth
CoinFLEX is achieving new levels of success by partnering with Fireblocks as its crypto custody infrastructure.
Its user base has grown 400% and daily trading volume has increased 18,789% since switching to Fireblocks.
This growth is reflected in the price appreciation of CoinFLEX’s exchange token FLEX Coin, with its market cap increasing from $20 million to over $400 million.
At the same time, CoinFLEX is achieving new efficiencies, including faster deposit and withdrawal times.
Combined, all of these great results are helping CoinFLEX to increase its user base and revenue.
We’re very happy with Fireblocks, and we look forward to continuing to work with them. They fit our team like a glove.
Today, CoinFLEX is proud to offer its users 45 different tokens, with plans to add hundreds more by the end of the year with the help of Fireblocks.
Beyond the business Fireblocks helps BVDH generate, their automation and service have delivered significant cost savings as well. By leveraging Fireblocks customer service, solution engineers and APIs, BVDH has been able to re-focus their R&D resources significantly.
Our ability to turn around new coin listings in 24 to 48 hours with Fireblocks — and our ability to speed up deposits and withdrawals —has had a direct, positive impact on our revenue.
