Volatility within the markets is still causing strain among cryptocurrency lenders and borrowing platforms like Hodlnaut. The Singapore-based company recently announced that all withdrawals, swaps, and deposits are currently suspended until further notice.
Hodlnaut was founded in 2019 and claims to have over $250 million in assets under management along with more than 10,000 active users on the platform.
The cryptocurrency lender also declared that it has withdrawn its application for a license to provide digital token payment services for which Hodlnaut received in principle approval earlier this year from the Monetary Authority of Singapore (MAS).
Within Hodlnaut’s post, the company claimed the transaction halt was “due to recent market conditions” and will now focus on stabilizing their liquidity while preserving the assets they currently hold. There is currently no timeline on when users will be able to withdraw their funds.
Hodlnaut included in their statement that “We are actively working on the recovery plan that we hope to provide updates and details on as soon as permissible.”
Hodlnaut is the most recently affected platform in a long line of cryptocurrency companies to have issues resulting from the strong market sell-off that was triggered by the demise of two paired tokens, Luna and TerraUSD earlier in May.
Other notable failures include Singapore-based fund Three Arrows Capital (3AC) and U.S. cryptocurrency lender Celsius, both of which declared bankruptcy last month. Hodlnaut is not in the same situation as 3AC and Celsius as of now, but issues within many cryptocurrency lending companies are still developing.
There are currently no specifics on what caused the halts in transactions for Hodlnaut. Most companies experienced internal liquidity issues that were caused by payments not being met on time by 3AC. However, Hodlnaut may have avoided being affected by 3AC’s implosion.
On June 16th, 2022, Hodlnaut CEO Juntao Zhu assured the public via Twitter that the platform was no longer involved in a borrowing or lending relationship with 3AC.
Zhu’s Twitter account is currently set to private.
Singapore, in particular, has been seeing a number of cryptocurrency platforms run into difficulties over these last few months.
Early in July, the Singapore-based cryptocurrency loan and trading platform Vauld stopped allowing withdrawals and then later that month, the Southeast Asia-focused cryptocurrency exchange Zipmex also stopped allowing withdrawals.
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