Breaking: Singapore-based Lending Protocol Vauld Halts Operations Citing Current Market Climate
- Reportedly, Vauld has recorded a withdrawal of over $197 million since June 12, 2022 from its customers.
Vauld, a crypto lending and trading platform, has fallen victim to the ongoing crypto winter. According to a corporate statement released today, Vauld has suspended all withdrawals, deposits and trading services on the platform.
In retrospect, the suspension was investable for Vauld. Remember, the crypto platform announced a 30 percent layoff late last month.
Nevertheless, the company through its top leadership position kept denying the fact that it was struggling to stay afloat.
“We have always maintained a balanced and conservative approach to liquidity management. Bull and bear runs are inevitable in the crypto market, and we deploy fundamentally strong strategies that account for these cycles,” Darshan Bathija Co-Founder and CEO at Vauld noted last month.
Vauld Responds to The Crypto Winter
The crypto winter has materialized after over $2 trillion vanished from the market in the past year. High level liquidation has taken place in the past few months. Now, crypto lending protocols around the world are struggling.
Vauld thrives on the success of Bitcoin, Ethereum among other top assets. However, with their sharp decline in the past year, the weak balance sheet was inevitable.
Reportedly, Vauld has recorded a withdrawal of over $197 million since June 12, 2022 from its customers. In a bid to ensure a smooth come back, the company has said it is working with market experts.
“We have made the difficult decision to suspend all withdrawals, trading and deposits on the Vauld platform with immediate effect. We believe that this will help to facilitate our exploration of the suitability of potential restructuring options, together with our financial and legal advisors,” Vauld wrote.
Notably, the company intends to apply with the Singapore Court for a grace period to ensure proper restructuring. Similar moves have been made by other struggling crypto companies including Celsius and 3AC.
Sigh of Relief
Despite the increasing cases of insolvency in the crypto lending companies, a rising number of deep-pocketed investors are stepping in to help. For instance, crypto firms like Binance and FTX have offered financial bailout to such companies A while ago, banking giant Goldman Sachs had offered to purchase Celsius assets at $2 billion.
As such, Vauld recently revealed its 6 months road map. According to the roadmap, the company intends to launch Derivatives and Margin Trading.
Additionally, the company intends to expand its OTC services through strategic partnerships.