bitcoinBTC/USD
$ 19,059.13
ethereumETH/USD
$ 1,324.06
tetherUSDT/USD
$ 0.999692
cardanoADA/USD
$ 0.459035
xrpXRP/USD
$ 0.488727
usd-coinUSDC/USD
$ 0.998972
terra-lunaLUNC/USD
$ 0.000226

Hodlnaut Has Become the Latest Crypto Lender Platform to Block Withdrawals

Ron Fetahu

The cryptocurrency lending platform Hodlnaut, which is headquartered in Singapore, has halted withdrawals, token swaps, and deposits, blaming “current market circumstances.” This makes Hodlnaut the latest in a series of cryptocurrency companies to go out of business since May.

According to the notice made on Monday, the business also stated that it will revoke its registration with the Monetary Authority of Singapore (MAS) to provide digital token payment services. According to a statement released by the MAS on Tuesday, the decision that the banking system issued in March when it gave in-principle permission for the licensing has now been reversed.

Hodlnaut is a crypto lending platform that was established in 2019 by Juntao Zhu and Simon Lee. It gives users the opportunity to earn an interest of up to 7.25% on their cryptocurrency assets by lending their assets to recognized organizations. The business reported on Tuesday that it had more than 10,000 members and assets worth $250 million at that point.

Even while shareholders will keep earning interest on their funds, they will not be able to access their money until they are notified otherwise. According to Hodlnaut, the company must first secure its liquidity and figure out a lengthy strategy, which is not going to be a quick process.

The unpredictable cryptocurrency market has wiped out more than one trillion dollars’ worth of value this year, and Hodlnaut is the most recent firm to be caught up in it. Since their respective all-time highs in November 2021, the two major cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), have seen declines of more than 60%.

The value of the stablecoin TerraUSD (UST) and Luna, which were both issued by Terraform Labs, was completely wiped out in May, falling from $60 billion to nothing. Because of this, a domino effect was triggered, which resulted in significant financial losses for investors across the sector.

The New Jersey-based lender, Celsius, submitted their Chapter 11 bankruptcy petition in the month of July, more than a month after they had temporarily halted withdrawals. It stated that it had 167 million dollars in cash on hand at the moment, which would enable it to continue functioning while undergoing reorganization.

A downward spiral was also experienced by Three Arrows Capital, who had committed a total of $200 million in the Luna tokens. After the cryptocurrency hedge fund struggled to deliver payments on a loan that was worth more than 665 million dollars, the crypto broker Voyager Digital posted a notification of default in June. 

Following this, a court in the British Virgin Islands issued an order for the liquidation of Three Arrows Capital, also known as 3AC, and several days later, the business filed for bankruptcy protection.

Hodlnaut is known as a centralized financial (CeFi) platform, which sets its own interest rates on cryptocurrency holdings. While they typically offer higher rates than conventional bank deposits, crypto deposits are not eligible for government-backed protections such as Federal Deposit Insurance Corporation (FDIC) insurance.

Also read:

Related News

Cardano currently has more than 3,000 stake pooling and decentralization features

ETH PoS Approach Lags Compared to Cardano’s Says Charles Hoskinson

In an interview, Charles Hoskinson, the founder of Cardano stated that Cardano had a superior proof-of-stake (PoS) strategy over Ethereum, in light of the change in consensus mechanism from PoW to PoS.  Charles Hoskinson discussed the launch of Cardano, the upgrade to Vasil’s hard fork, the launch of Dapps, the LACE light wallet, decentralization, CBDC (Central Bank Digital Currency), as well as the metaverse. The IOG/Cardano Foundation team effectively initiated

Read More »
Immediately following the announcement, Bitcoin's (BTC) price wavered for a while before dropping along with American stocks.

75 Basis Point Rate Hike by the Fed Sends Cryptocurrencies on a Downward Spiral

The much-awaited Fed rate hike has finally been announced, and as predicted, it delivered a significant hit to the larger cryptocurrency market on September 21. 75 bps were added to the Fed’s policy rate, bringing it to a level of 3 – 3.25%. The ensuing rises constitute the central bank’s swiftest change in policy since the 1980s, and this statistic shows a significant rise from March of 2022 when the

Read More »
In a separate move, an impartial third party was already established to investigate the finances of Celsius.

Wrapped Assets to be Issued by Celsius to Compensate Users

According to a newly released voice memo, Celsius Network execs are considering repaying clients by issuing freshly wrapped assets to exchange on other networks. The co-founder and CEO of Celsius, Nuke Goldstein, seems to go into greater detail about the company’s plan to reimburse Earn consumers in the tape that Tiffany Fong published. The earlier leaked meeting audio is attributed to Celsius’s client and public person Fong. The Block claims

Read More »

My Coins

bitcoinBitcoin
$ 19,059.130.02%
ethereumEthereum
$ 1,324.060.24%
tetherTether
$ 0.9996920.12%
usd-coinUSD Coin
$ 0.9989720.21%

Newest Videos on YouTube

We inform and educate people about Cryptocurrencies and Blockchain technology.

© Copyright 2021, All Rights Reserved,
Crypto Academy

Bitcoin

Contact Us

For any question conatct us through:

[email protected]

Disclaimer: All information and materials on this website are for educational purposes only. Crypto-academy.org does not provide any form of financial advice. Cryptocurrencies are highly volatile, therefore any form of investing carries a high level of risk to your capital. It is recommended that you seek professional advice prior to implementing any investment or financial plan.

We do not ask you for your Cryptocurrency / We do not hold your Coins / We do not ask for Private Keys / Be aware of scammers and imposters.

Contact us only through: [email protected]