Crypto lending platform Hodlnaut suspends services due to liquidity crisis

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Singapore-based crypto lending platform Hodlnaut has grow to be the newest company to droop withdrawals, and deposits blaming marketplace prerequisites and loss of liquidity.

The crypto lending company made an professional announcement on Aug. 8, claiming that marketplace prerequisites have compelled it to droop its services and products and that it’s actively running on restoration plans. 

Hodlnaut additionally said that it has withdrawn its regulatory license utility in Singapore and in consequence, it might not be capable to be offering any token swaps options. The professional announcement learn:

“We’re actively running at the restoration plan that we are hoping to offer updates and main points on once permissible. We’re consulting with Damodara Ong LLC at the feasibility and timelines of our supposed execution plan and are strategizing our restoration plan with our customers’ very best pursuits in thoughts.”

The crypto lending platform stated it might droop all of its social media accounts aside from for the professional Twitter and Telegram. With the exception of the social media suspensions, founder Juntao Zhu has long gone personal on Twitter.

The crypto lending disaster started with the Terra ecosystem cave in adopted through the chapter of main crypto hedge fund 3 Arrow Capital (3AC). The back-to-back marketplace turmoil created a domino impact for crypto lenders with publicity to the hedge fund in addition to the Terra ecosystem. Voyager Virtual, Celsius and Blockchain.com had been some primary crypto lenders that suspended their services and products.

Hodlnaut controlled to keep away from any 3AC publicity, however some reviews have claimed that the company used to be now not clear referring to its investments in Terra’s now defunct algorithmic stablecoin. A document printed through Twitter deal with Fatman in June pointed towards the massive publicity of Hodlnaut all through the stablecoin’s depeg and the way they misrepresented their place:

Zhu has claimed that the company neither purchased any UST nor incurred any losses on its UST yield services and products, however failed to supply any documentation as evidence.

The obvious downfall of some other crypto lending platform invoked livid reactions from the crypto neighborhood with many advocating for buyers to retailer their crypto off-exchange. Others pointed towards the domino impact that the UST cave in created in Might with results being noticed even now.