Crypto lending platform Hodlnaut suspends services due to liquidity crisis
Blaming market situations and lack of liquidity, Singapore-based crypto lending platform Hodlnaut has change into the newest agency to droop withdrawals and deposits.
The crypto lending agency made an official announcement on Monday, claiming that market situations have pressured it to droop its providers and that it’s actively engaged on restoration plans.
Pricey customers, we remorse to tell you that we are going to be halting withdrawals, token swaps and deposits instantly as a consequence of latest market situations. We’ve got additionally withdrawn our MAS licence software. Right here is our full assertion https://t.co/5KfHUBzWsn Our subsequent replace will likely be on 19 Aug.
— Hodlnaut (@hodlnautdotcom) August 8, 2022
Hodlnaut additionally said that it has withdrawn its regulatory license software in Singapore and consequently, would not be capable to supply any token swaps options. The official announcement learn:
“We’re actively engaged on the restoration plan that we hope to offer updates and particulars on as quickly as permissible. We’re consulting with Damodara Ong LLC on the feasibility and timelines of our supposed execution plan and are strategizing our restoration plan with our customers’ finest pursuits in thoughts.”
The crypto lending platform mentioned it might droop all of its social media accounts aside from the official Twitter and Telegram. Other than the social media suspensions, founder Juntao Zhu has gone non-public on Twitter.
The crypto lending disaster started with the Terra (LUNA) — now renamed Terra Traditional (LUNC) —ecosystem collapse adopted by the chapter of main crypto hedge fund Three Arrow Capital (3AC). The back-to-back market turmoil created a domino impact for crypto lenders with publicity to the hedge fund in addition to the Terra ecosystem. Voyager Digital, Celsius and Blockchain.com had been some main crypto lenders that suspended their providers.
Hodlnaut managed to keep away from any 3AC publicity, however some reviews have claimed that the agency was not clear concerning its investments in Terra’s now defunct algorithmic stablecoin. A report printed by Twitter deal with Fatman in June pointed towards the massive publicity of Hodlnaut through the stablecoin’s depeg and the way they misrepresented their place:
They offered some UST as little as $0.40, degen shorted via bETH cross-margining, had enormous, dangerous shorts on exchanges in the most effective case state of affairs, and in a hilarious transfer of courageous defiance, they even re-entered Anchor after the collapse (small measurement). https://t.co/yfbTET4U4n (15/25)
— FatMan (@FatManTerra) June 26, 2022
Zhu has claimed that the agency neither purchased any UST nor incurred any losses on its UST yield providers, however failed to supply any documentation as proof.
The obvious downfall of one other crypto lending platform invoked livid reactions from the crypto neighborhood with many advocating for buyers to retailer their crypto off-exchange. Others pointed towards the domino impact that the UST collapse created in Might with results being seen even now.
One other one bites the mud. Now that most of the largest gamers have gone beneath, which of them are subsequent? In case you nonetheless have property with third events, it’s best to withdraw them to your individual pockets ASAP. Not your keys, not your crypto. https://t.co/mY85yBhNbg
— Soldman Gachs ⌐◨-◨ (@DrSoldmanGachs) August 8, 2022
