Hodlnaut has announced that it has frozen its services for the users. The firm made an official announcement on Monday providing a reason why it has decided to freeze its services.
Hodlnaut Freezes Multiple Services for Users
Hodlnaut is a cryptocurrency lending platform that is under hot waters because it had to make a critical decision leaving unhappy investors.
The firm announced on Monday that it had to disable multiple services for the user citing critical market conditions. Hodlnaut has reportedly frozen token swaps, deposits, and withdrawals on its platform.
This is a very alarming situation for the entire cryptocurrency community that has been interacting with the platform to gain exposure to cryptocurrencies.
The reason behind Freezing Services
Hodlnaut, which is based in Singapore, has announced that its goal is to stabilize liquidity. Moreover, it wants to preserve the assets.
The firm is aiming to bring in long-term solutions to the problem and until it does, it plans on keeping the services frozen for the users.
Although the firm is aiming to bring stability to the liquidity and preservation of the cryptocurrency assets, still, the investors may find it difficult to believe.
Hodlnaut Also Withdrew its License Application
Hodlnaut has not only disabled the services for the users but has also withdrawn the application for license it had submitted to the Monetary Authority of Singapore.
It is quite surprising for the cryptocurrency users to see Hodlnaut withdrawing its request even when the central bank had given it in-principal approval.
Hodlnaut Joins the Club
Ever since the demise of the cryptocurrency industry has arrived, many cryptocurrency lending firms have ended up facing difficult times.
Firms such as Voyager Digital and Celsius Network that had worldwide recognition have gone on to file bankruptcies for protection.
Now, Hodlnaut has joined the same club and so far, it has suspended users’ access to the mentioned services.
The cryptocurrency industry’s demise since the end of 2021 has been a huge test of patience for the cryptocurrency investors’ communities.
The industry that had a market valuation of almost $3 trillion in November 2021, is finding it difficult to hit $1 trillion.
One of the major collapses recorded for the major cryptocurrency lending firms was recorded with Three Arrows Capital. The firm that had billions of dollars ended up getting dried out.
In June, Hodlnaut made it clear through an official announcement that it had taken no loan from Celsius or Three Arrows Capital.
Hodlnaut’s Next Move
For now, there is nothing more Hodlnaut has added other than announcing that it will be updating its clients on the developments on August 19. The investors are now expressing their concerns about Hodlnaut through multiple social media channels.
The cryptocurrency data analyzing firms have revealed that Hodlnaut currently has more than $500 million worth of cryptocurrency assets under its management.