Key Takeaways
Hodlnaut is the newest cryptocurrency lender to halt withdrawals and operations, citing “market conditions.”
The agency has additionally withdrawn its utility for a digital fee token license earlier than the Monetary Authority of Singapore, indicating it doubtless plans to cease working for good.
Hodlnaut beforehand disclosed that it held round $500 million in property beneath administration prior to halting withdrawals.
Share this text
Hodlnaut has stated it’s engaged on a restoration plan with out disclosing any extra data regarding the present standing of customers’ funds.
Hodlnaut Suspends Services
Singapore-based crypto lending platform Hodlnaut has entered disaster mode.
Dear customers, we remorse to inform you that we are going to be halting withdrawals, token swaps and deposits instantly due to latest market circumstances. We have additionally withdrawn our MAS licence utility. Here is our full assertion https://t.co/5KfHUBzWsn Our subsequent replace can be on 19 Aug.
— Hodlnaut (@hodlnautdotcom) August 8, 2022
According to a Monday announcement, the lender has paused withdrawals, token swaps, and deposits amid liquidity points. “We would like to reassure you that this difficult decision was taken for us to focus on stabilizing our liquidity and preserving assets,” the agency stated reassuring customers that it was working in direction of the very best resolution to shield their long-term curiosity. “We have reached this difficult decision due to recent market conditions,” the agency added with out offering any additional particulars regarding the state of its stability sheet.
Hodlnaut additionally revealed that it had withdrawn its utility for a digital fee token (DPT) license with the Monetary Authority of Singapore, indicating it has no plans to proceed working and can doubtless file for chapter. The agency additionally restricted its social media presence to electronic mail, Twitter, and Telegram, saying it needed to “consolidate [its] efforts and give accurate information promptly.” The lender has additionally taken down its workforce web page, whereas Hodlnaut founder Juntao Zhu has set his Twitter profile to privatem.
Hodlnaut is simply the newest in a collection of centralized crypto platforms to both go bankrupt or severely restrict their operations within the aftermath of Terra’s collapse in May. The collapse—which noticed the worth of Terra’s native token LUNA plummet to zero within the house of some days—led to a big stoop within the crypto market, catching a number of notable crypto funds and repair suppliers off guard. Among the primary greatest funds to blow up following Terra’s collapse was Three Arrows Capital, whose failure to honor loans plunged a number of crypto lenders, together with Celsius, Voyager Digital, Vauld, and Babel Finance, into extreme liquidity and solvency crises.
According to Hodlnaut’s since-edited LinkedIn profile, the lender just lately held round $500 million in property beneath administration . It’s price noting that if the agency’s phrases of service resemble these of Celsius and Voyager, the depositors could also be categorized as unsecured collectors within the case of chapter. That might imply that they’re unable to get well the whole thing of their property.
Disclosure: At the time of writing, the creator of this text owned ETH and several other different cryptocurrencies.
Share this text
The data on or accessed by means of this web site is obtained from impartial sources we imagine to be correct and dependable, however Decentral Media, Inc. makes no illustration or guarantee as to the timeliness, completeness, or accuracy of any data on or accessed by means of this web site. Decentral Media, Inc. just isn’t an funding advisor. We don’t give customized funding recommendation or different monetary recommendation. The data on this web site is topic to change with out discover. Some or the entire data on this web site could change into outdated, or it could be or change into incomplete or inaccurate. We could, however usually are not obligated to, replace any outdated, incomplete, or inaccurate data.
You ought to by no means make an funding choice on an ICO, IEO, or different funding primarily based on the knowledge on this web site, and you must by no means interpret or in any other case depend on any of the knowledge on this web site as funding recommendation. We strongly suggest that you just seek the advice of a licensed funding advisor or different certified monetary skilled if you’re searching for funding recommendation on an ICO, IEO, or different funding. We don’t settle for compensation in any type for analyzing or reporting on any ICO, IEO, cryptocurrency, forex, tokenized gross sales, securities, or commodities.
See full phrases and circumstances.