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Crypto lending platform Hodlnaut halts its operation due to liquidity issue

The cryptocurrency lending platform Hodlnaut, which is located in Singapore, has become the latest company to restrict withdrawals and deposits, citing current market circumstances and a lack of liquidity as the reasons.

The cryptocurrency lending company issued a formal notification on August 8, stating that it has been forced to temporarily halt its operations due to the current state of the market and that it is actively working on recovery strategies.

Hodlnaut also announced that it has withdrawn its application for a regulatory licence in Singapore. As a result of this action, the company will no longer be able to provide any token swap capabilities to its customers.

The cryptocurrency lending platform said that it would shut down all of its social media accounts with the exception of its official Twitter and Telegram channels. In addition to being banned from several social media platforms, the company’s founder, Juntao Zhu, has made his Twitter account private.

The failure of the Terra ecosystem was the first domino in the chain of events that led to the crypto loan crisis, which was followed by the failure of the largest crypto hedge fund, Three Arrow Capital (3AC). A number of prominent cryptocurrency lenders, including Voyager Digital, Celsius, and Blockchain.com, have stopped providing their services.

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Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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