Bitcoin and altcoin platform Hodlnaut has suspended withdrawals for an unspecified period. Working as a crypto lending platform just like Celsius, Hodlnaut seems to be taking similar steps in the face of issues. Celsius also froze cryptocurrency withdrawals last month. After that, he filed for bankruptcy in the USA. Now investors are asking whether the same thing will happen to Hodlnaut.
This Bitcoin platform also suspended transactions
Hodlnaut, a cryptocurrency lender operating in Asia, said it has stopped withdrawals, making it the latest company to be hit by a string of defaults. In a statement on Monday, the company announced that it “immediately ceased operations of withdrawals, clearing and deposits” due to “recent market conditions”. The company also said it has withdrawn its license application with Singapore’s central bank. Just like its competitor Celsius, the lending platform showed market conditions why. The bitcoin and altcoin platform added, “We are actively working on the recovery plan, which we hope to provide updates and details on as soon as possible.”
Launched in 2019, the company allowed investors to earn interest on their cryptocurrencies by lending their tokens. However, crypto currency prices have lost value greatly with the bear market in 2022. These price drops have wiped out nearly $2 trillion from the industry. Hodlnaut has taken its place as one of the few cryptocurrency lending platforms to suffer from these declines. Now the firm seeks advice from Singapore-based law firm Damodara Ong. This consultation includes a timeline for a user asset protection plan. Hodlnaut users are looking forward to the new announcement, which is expected to be announced on August 19. According to the company’s LinkedIn page, the Bitcoin platform manages a total of $500 million worth of crypto assets.
Companies crashing in bear market
In the last 6 months, the crypto market has been hurt by the Terra crash and the bankruptcy of some leading companies. What this chain of bankruptcies and collapses had in common was that they all had liquidity problems. Terra had a dual token system called LUNA and UST. However, the UST, which was pegged to the dollar, lost its stability, triggering a massive sell-off. As a result, today, the Terra project has taken its place as one of the scandals of the market. Lending platform Celsius, on the other hand, has stopped its users from withdrawing funds due to liquidity problems. Then, he filed for bankruptcy. As we reported as Kriptokoin.com, the giant hedge fund Three Arrows Capital also experienced similar events. Now, it looks like a Bitcoin platform is getting ready to be the last link in the chain.
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