{"id":32930,"date":"2022-08-08T16:45:49","date_gmt":"2022-08-08T20:45:49","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=32930"},"modified":"2022-08-08T16:45:54","modified_gmt":"2022-08-08T20:45:54","slug":"hodlnaut-suspends-services-due-to-liquidity-crisis","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/hodlnaut-suspends-services-due-to-liquidity-crisis\/","title":{"rendered":"Hodlnaut suspends services due to liquidity crisis"},"content":{"rendered":"\n
Crypto lending platform Hodlnaut is suspending transactions including withdrawals <\/a>and deposits, citing market conditions and a lack of liquidity as a reason.<\/h5>\n\n\n\n
\"Hodlnaut
Hodlnaut suspends services due to liquidity crisis<\/figcaption><\/figure>\n\n\n\n

On Monday, the crypto lending business released a formal statement explaining why it had to cease its operations and stating that it was already working on a recovery strategy.<\/p>\n\n\n\n

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Dear users, we regret to inform you that we will be halting withdrawals, token swaps and deposits immediately due to recent market conditions. We have also withdrawn our MAS licence application. Here is our full statement https:\/\/t.co\/5KfHUBzWsn\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> Our next update will be on 19 Aug.<\/p>— Hodlnaut (@hodlnautdotcom) August 8, 2022<\/use><\/svg><\/span><\/a><\/blockquote>

Additionally, Hodlnaut announced that it has withdrawn its application for a regulatory license in Singapore and would no longer be able to provide any token swap capabilities. The official statement stated:<\/p>\n\n\n\n

\u201cWe are actively working on the recovery plan that we hope to provide updates and details on as soon as permissible. We are consulting with Damodara Ong LLC on the feasibility and timelines of our intended execution plan and are strategizing our recovery plan with our users\u2019 best interests in mind.\u201d<\/p><\/blockquote>\n\n\n\n

All of the cryptocurrency lending platform's<\/use><\/svg><\/span><\/a> social media accounts\u2014aside from the official Twitter and Telegram accounts\u2014will be suspended, it announced. In addition to the prohibitions on social media, creator Juntao Zhu has made his Twitter account private.<\/p>\n\n\n\n

The collapse of the Terra (LUNA) ecosystem\u2014now known as Terra Classic (LUNC)\u2014and the bankruptcy of prominent crypto hedge fund Three Arrow Capital marked the beginning of the crypto loan crisis (3AC).<\/p>\n\n\n\n

The simultaneous market turbulence had a cascading effect on cryptocurrency lenders who had exposure to both the Terra ecosystem and the hedge fund. Major cryptocurrency lenders like Voyager Digital, Celsius, and Blockchain.com ceased their operations.<\/p>\n\n\n\n

Despite the fact that Hodlnaut was able to avoid any 3AC <\/a>liability, some sources suggest that the company was not upfront about its investments in Terra's now-defunct algorithmic stablecoin.<\/p>\n\n\n\n

In a post shared in June on Twitter by the user name Fatman, Hodlnaut was exposed widely during the stablecoin's depeg and was found to have misrepresented their position:<\/p>\n\n\n\n

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To give them the benefit of the doubt, there are ways to hedge their nine-figure aUST position such as shorting on FTX, but this would require Hodlnaut to collateralize the majority of their AUM on an exchange, which is highly irresponsible to say the least. (14\/25)<\/p>— FatMan (@FatManTerra) June 26, 2022<\/use><\/svg><\/span><\/a><\/blockquote>

Zhu asserted\u2014without providing any supporting documentation\u2014that the company did not purchase any UST and did not suffer any losses as a result of its UST yield services.<\/p>\n\n\n\n

The apparent failure of another cryptocurrency loan business sparked outraged responses from the cryptocurrency community<\/a>, with many urging investors to deposit their cryptocurrency somewhere other than exchanges. Others mentioned the cascading repercussions of the UST collapse in May, which are still being felt today.<\/p>\n\n\n\n

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Another one bites the dust. Now that many of the largest players have gone under, which ones are next? If you still have assets with third parties, you should withdraw them to your own wallet ASAP. Not your keys, not your crypto. https:\/\/t.co\/mY85yBhNbg<\/use><\/svg><\/span><\/a><\/p>— Soldman Gachs (@DrSoldmanGachs) August 8, 2022<\/use><\/svg><\/span><\/a><\/blockquote>

Crypto lending platform Hodlnaut is suspending transactions including withdrawals and deposits, citing market conditions and a lack of liquidity as a reason. On Monday, the crypto lending business released a formal statement explaining why it had to cease its operations and stating that it was already working on a recovery strategy. Additionally, Hodlnaut announced that […]<\/p>\n","protected":false},"author":12,"featured_media":32932,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[4416,11050,1929],"class_list":["post-32930","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-hodlnaut","tag-liquidity-crisis","tag-withdrawals"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/08\/image-25.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/32930","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=32930"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/32930\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/32932"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=32930"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=32930"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=32930"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}