Hodlnaut Ceases Withdrawals And Other Activities
- Hodlnaut has paused withdrawals, deposits, and token swaps for its users, citing “difficult market conditions.”
- The decision was taken to concentrate on stabilizing liquidity and safeguarding assets while Hodlnaut works on a long-term permanent solution.
Singapore-based crypto lending platform Hodlnaut has joined the list of crypto companies seriously troubled with the ongoing crypto winter.
According to an announcement by the company on Monday, it has paused withdrawals, deposits, and token swaps for its users, citing “difficult market conditions.” The “difficult decision” was taken to concentrate on stabilizing liquidity and safeguarding assets while Hodlnaut works on a long-term permanent solution.
The announcement reads:
“We believe that this will provide us with the necessary breathing room to explore potential restructuring options and recovery plans with our legal advisors.”
In the meantime, the users would only have the option to access their account to view their balances and export their transaction history and interest statements. Interestingly, the lending platform will continue to pay out interest earned according to its rates every Monday until further notice.
License application withdrawal
The 2019-founded company has also decided to withdraw its license application from the Monetary Authority of Singapore (MAS), implying that Hodlnaut is no longer a regulated digital payment token (DPT) provider in the region. The announcement added:
“For the avoidance of doubt, Hodlnaut will also cease all borrowing and lending services.”
Hodlnaut stated that it is working on the recovery plan aggressively and would give further updates and details on August 19. Additionally, it stated that the company would only respond to user communications via email, Twitter, and Hodlnaut Telegram. The other social networking sites will all be disabled, for unknown reasons.
It is important to note that the company is also consulting with Singapore-based legal firm Damodara Ong LLC. to discuss possible solutions and timeframes of its anticipated execution plan to preserve user assets.
Notably, in March 2021, Hodlnaut joined forces with the decentralized finance-focused insurance startup Nexus Mutual. According to the company’s LinkedIn profile, it manages more than $500 million in assets.
Trouble continues
The company is the most recent in a long line of cryptocurrency lenders to falter this year due to heavy market pressure, with Celsius Network and Voyager Digital also filing for bankruptcy. Zipmex, another Singapore-based cryptocurrency startup, filed for bankruptcy protection last week, citing serious losses on its exposure to Celsius and Babel Finance. From more than $3 trillion in November, the total market valuation of cryptocurrencies has fallen to a little over $1 trillion today.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
