Sequoia-backed Flint is discontinuing its flagship yield service and considering alternate product possibilities
- ByStartupStory | January 28, 2023
Flint, a Decentralised Finance (DeFi) software funded by investors such as Sequoia capital and Coinbase, has decided to cease its flagship yield offering service due to regulatory uncertainties, according to an email sent to customers on January 24.
“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.
Flint is discontinuing its business after recalling the funds it had placed in Bahamas-based FTX, which just went bankrupt. The development was initially reported by The Decrypting Story. In its yield offering, the programme promised users a fixed return on deposits of Ethereum, Bitcoin, or any of the other options indicated. According to the company’s website, users put an average of $3,100 into the programme.
“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.
Users have been informed that they can transfer monies from Flint to their own wallets. However, the withdrawal process can take up to seven days to complete, according to the company’s 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 trying to expand outside its core yield offers. It has started a crowdsourcing campaign for a variety of new items. According to a Google Survey shared with users, the first is a Chrome or Brave-based browser extension that would enhance the experience utilizing various Web3 products such as Metamask and Decentralized Exchanges (DEXs). According to discussions on the channel’s official Telegram group, the corporation is also considering launching its own native token. Some Flint users who spoke with YourStory remain hopeful about the app’s ability to adapt.
“They have been enabling withdrawals 24X7 which in itself is a great proof of their legit nature,” one user said, asking not to be named.
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