Hodlnaut, a Singapore-based digital currency lending startup has announced that it will be stopping withdrawals citing the recent market conditions as the reason.
Hodlnaut comes off as the latest lending platform to announce the need to resolve its liquidity crisis as the industry is looking for a way to attain balance across the board. The startup said the decision to halt withdrawals was made for it because it is the best way to chart a new growth path that will favor all of its users, investors, and stakeholders.
“We regret to inform you that we will be halting withdrawals, token swaps, and deposits with immediate effect. We have reached this difficult decision due to recent market conditions,” the startup’s Monday announcement reads, “We understand that this is disappointing news and understand its impact on you. We would like to reassure you that this difficult decision was taken for us to focus on stabilising our liquidity and preserving assets, while we work to find the best way to protect our users’ long-term interests. We sincerely apologise for the inconvenience that this has caused you.”
The firm said it has tapped the services of Damodara Ong LLC to help in advising the firm as it concerns its next course of action.
Hodlnaut Withdrew its Licensing Application
According to the startup, it has withdrawn its license application with the Monetary Authority of Singapore (MAS), a move that will stop it from serving the public as a digital payment token (DPT) services firm.
Based on this, Hodlnaut said it will halt its token swap feature as well as other core services as it looks for a way out to settle its liabilities.
“We would also like to inform our users that, as a result of the above reasons, we have since informed the MAS of our intention to withdraw our licence application. Hodlnaut is therefore no longer providing regulated digital payment token (DPT) services, ie our token swap feature. For the avoidance of doubt, Hodlnaut will also cease all borrowing and lending services,” the announcement reads.
With the likes of Celsius Network, Babel Finance, Voyager Digital, and the Vauld Group also facing related challenges, Hodlnaut seems to have a lot to learn from precedents already set up in the ecosystem over the past 2 months.