After Celsius, Voyager, BlockFi and others, Hodlnaut is the latest crypto lending platform to halt withdrawals, token swaps and deposits citing tough market conditions.
The ongoing liquidity crunch has spilled over to crypto lender Hodlnaut. The company posted a message to all users on its website. Difficult market conditions and efforts to stabilize liquidity were cited as the main reasons.
The process followed by Hodlnaut is similar to that followed by other struggling crypto lenders in a similar situation. In addition to the measures taken, Hodlnaut has also informed its users that it has withdrawn its license application with the Monetary Authority of Singapore (MAS), resulting in the withdrawal of its token exchange capacity.
While the platform said it would continue to pay interest to users until further notice, it also said it had shut down its social media platforms except for the odd channel official. The YouTube channel was deleted and founder Juntao Zhu’s Twitter account was set to private.
Additionally, the team page was removed from the Hodlnaut website, which previously had two founders, five team members, and one advisor.
The message to users indicates that a recovery plan is being worked on and that an update on this will be released as soon as possible.
The message to users included an FAQ stating that potential restructuring options had been reviewed with Hodlnaut’s legal counsel and that an update would be posted on Friday, August 19, 2022.
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