Decentralised Finance (DeFi) app Flint, which is backed by investors like Sequoia Capital and Coinbase, has decided to discontinue its flagship yield offering service amid regulatory uncertainty, Flint told users in an email dated January 24.
YourStory has seen a copy of this email.
“Today we are announcing the regrettable but necessary decision that Flint will be phasing out its services due to regulatory clarity around crypto deposit-taking companies like ours,” the company said in the email to users.
This move to discontinue its service comes after Flint recalled the capital it had staked on Bahamas-headquartered FTX, which recently went bankrupt. The Decrypting Story was the first to report the development.
In its yield offering, the app promised users a fixed return on their deposits of Ethereum, Bitcoin or several of its listed options. Users on average deposited $3,100 into the app, as per the company’s website.
“Since our inception we have made significant efforts to do things the right way, and help grow our users’ wealth in a safe and sound manner. Our prudent risk management practices also ensured we remained unscathed during the fall down of some of the largest names in crypto recently. However, due to increased regulatory uncertainity with our offering we have decided to discontinue our offering,” it said.
What are users expected to do?
Users have been told that they can withdraw funds from Flint to their own wallets. However, the process of withdrawal can take anywhere up to seven days to execute, the company said in the email. “We want to assure you that all of your funds as well as the interest earned up until yesterday (January 23) is safe and will be returned to you as soon as possible,” it added.
Now, the company is looking to diversify beyond its flagship yield offerings. It has begun a crowdsourcing interest in a range of new products. The first of which is a Chrome or Brave-based browser extension that will enhance the experience using different Web3 products like Metamask, and Decentralised Exchanges (DEXs), according to a Google Survey shared by the firm to users.
YourStory has reviewed this Google Survey.
According to conversations on the channel’s official telegram group, the company is also mulling the possibility of issuing its own native token. Some users of Flint who spoke with YourStory remain optimistic about the app’s ability to pivot.
“They have been enabling withdrawls 24X7 which in itself is a great proof of their legit nature,” one user said asking not to be named.
An email sent to Flint did not elicit any response. We will update the story to reflect its comments.
Edited by Affirunisa Kankudti