Amid bearish market sentiments, Singapore-based cryptocurrency lending platform Hodlnaut on Monday announced the halting of withdrawals citing liquidity constraints, and needing to focus on stabilising its liquidity and preserving assets.
With the move, Hodlnaut joins a long list of crypto entities halting withdrawals and even trading, citing financial challenges brought upon by the existing volatile market conditions.
In the recent past, firms like Vauld, Celsius, Voyager, Terraform Labs, and the hedge fund Three Arrows Capital (3AC) have either suspended trading activity or even declared bankruptcy.
From more than $3 trillion in November last year, the market capitalisation of cryptocurrencies has fallen to a little over $1 trillion.
Hodlnaut also stops token swaps and deposits
Hodlnaut, in a statement issued on August 8, stated that the platform has also stopped token swaps and deposits and is working with Singapore law firm Damodara Ong LLC on a recovery plan.
"Halting withdrawals and token swaps was a necessary step for us to stabilise our liquidity, and give us the time to work closely with our legal advisors to come up with the best possible restructuring and recovery plan for our users," the platform stated.
Withdraws license application from MAS
Additionally, Hodlnaut also withdrew its application for a license from the Monetary Authority of Singapore. Token swaps, a regulated service, cannot be supported without this licence.
According to Hodlnaut, interest payments to clients will continue until further notice.
Shutting down social media
The company also stated that barring a few official channels, it would be shutting down its social media accounts.
The website's YouTube channel has been removed, and CEO and co-founder Juntao Zhu has made his Twitter account private.
The team page of the Hodlnaut website, which formerly mentioned its two founders, five employees, and an advisor, has also been taken down.
Hodlnaut stated that it will provide another update on August 19.
According to the company's LinkedIn profile, it manages more than $500 million in assets.
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