{"id":33874,"date":"2022-08-19T05:47:44","date_gmt":"2022-08-19T09:47:44","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=33874"},"modified":"2022-08-19T05:47:47","modified_gmt":"2022-08-19T09:47:47","slug":"hodlnaut-cuts-off-staff-size-by-80","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/hodlnaut-cuts-off-staff-size-by-80\/","title":{"rendered":"Hodlnaut cuts off staff size by 80%"},"content":{"rendered":"\n
Troubled cryptocurrency lending platform<\/a> Hodlnaut stated it is cutting down its staff size by a whooping 80% owing to poor financial condition.<\/h5>\n\n\n\n
\"Hodlnaut
Hodlnaut cuts off staff size by 80% <\/figcaption><\/figure>\n\n\n\n

The catastrophic situation was revealed on August 19 by Hodlnaut, which provides interest-bearing bitcoin investment alternatives in verified institutions.<\/p>\n\n\n\n

High withdrawal volumes, the general decline in cryptocurrency markets\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>, and losses incurred by the company's Hong Kong affiliate after the historic TerraUSD crash have all been blamed for the company's precarious financial situation.<\/p>\n\n\n\n

To avoid liquidating Hodlnaut's Bitcoin (BTC) and Ethereum assets, the business elected to apply for judicial management, which will see the Singaporean Court appoint a manager to oversee its accounts and operations (ETH).<\/p>\n\n\n\n

Judicial management will also enable the business to implement a recovery plan and perhaps even undergo rehabilitation. According to the company's announcement, it intends to return its asset-to-debt ratio to 1:1 so that users can withdraw their initial cryptocurrency deposits.<\/p>\n\n\n\n

Hodlnaut also stated that it was considering giving users the option to close their Hodlnaut accounts before withdrawing their initial investment <\/a>and all accumulated interest. This is now up for the soon-to-be-appointed judicial manager's approval.<\/p>\n\n\n\n

By lowering burn rates, the company will take steps to stabilize its liquidity. As a result, all open-term lending rates will be reduced to 0% APR as of August 22. The business also acknowledged that it had laid off 40 workers, or 80% of its staff, in an effort to further cut costs.<\/p>\n\n\n\n

Just a few weeks after Hodlnaut stopped allowing withdrawals and deposits on its platform, the application for Judicial Management will be submitted on August 22.<\/p>\n\n\n\n

Hodlnaut may have had exposure to Terra's failing algorithmic stablecoin UST, according to on-chain analytics, despite the company's insistence that it had no investment exposure to the now-bankrupt loan company 3 Arrows Capital<\/a>.<\/p>\n\n\n\n

Hodlnaut added that the Singapore Police Force and the Attorney-General of Singapore were also parties to ongoing legal actions.<\/p>\n","protected":false},"excerpt":{"rendered":"

Troubled cryptocurrency lending platform Hodlnaut stated it is cutting down its staff size by a whooping 80% owing to poor financial condition. The catastrophic situation was revealed on August 19 by Hodlnaut, which provides interest-bearing bitcoin investment alternatives in verified institutions. High withdrawal volumes, the general decline in cryptocurrency markets , and losses incurred by […]<\/p>\n","protected":false},"author":12,"featured_media":33876,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[4416,10598],"class_list":["post-33874","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-hodlnaut","tag-staff"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/08\/image-124.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/33874","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=33874"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/33874\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/33876"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=33874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=33874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=33874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}