Crypto lending platform Hodlnaut suspends services due to liquidity crisis

Blaming market situations and lack of liquidity, Singapore-based crypto lending platform Hodlnaut has grow to be the newest agency to droop withdrawals and deposits.

The crypto lending agency made an official announcement on Monday, claiming that market situations have compelled it to droop its providers and that it’s actively engaged on restoration plans.

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Pricey customers, we remorse to tell you that we’ll be halting withdrawals, token swaps and deposits instantly resulting from latest market situations. We now have additionally withdrawn our MAS licence utility. Right here is our full assertion https://t.co/5KfHUBzWsn Our subsequent replace might be on 19 Aug.

— Hodlnaut (@hodlnautdotcom) August 8, 2022

Hodlnaut additionally acknowledged that it has withdrawn its regulatory license utility in Singapore and because of this, would not be capable of supply any token swaps options.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 meant execution plan and are strategizing our restoration plan with our customers’ greatest pursuits in thoughts.”

The crypto lending platform stated it might droop all of its social media accounts apart from the official Twitter and Telegram. Aside from the social media suspensions, founder Juntao Zhu has gone personal on Twitter.

The crypto lending disaster started with the Terra (LUNA) — now renamed Terra Basic (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 have been some main crypto lenders that suspended their providers.

Hodlnaut managed to keep away from any 3AC publicity, however some studies 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 big publicity of Hodlnaut throughout the stablecoin’s depeg and the way they misrepresented their place:

They offered some UST as little as $0.40, degen shorted by means of bETH cross-margining, had large, dangerous shorts on exchanges in the very best case state of affairs, and in a hilarious transfer of courageous defiance, they even re-entered Anchor after the collapse (small dimension). 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 group with many advocating for buyers to retailer their crypto off-exchange. Others pointed towards the domino impact that the UST collapse created in Could 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? Should you nonetheless have belongings 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

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