Crypto firms seem to be falling like a row of dominos, with Singapore-based cryptocurrency firm Hodlnaut being the next victim.
They suddenly suspended withdrawals, swaps, and deposits, and are withdrawing their application for a MAS license.
Move Due to Recent Market Conditions
On 8 August, Hodlnaut sent a statement to its users, informing them that they are halting withdrawals, token swaps and deposits with immediate effect.
They cited “recent market conditions” as the reason for this decision, saying that this is to help them focus on stabilising their liquidity and preserving assets.
Additionally, the firm will withdraw its application for a license from the Monetary Authority of Singapore to provide digital token payment services. They received in-principle approval for that in March.
By withdrawing their application, Hodlnaut will no longer be able to provide regulated digital payment token services, AKA the token swap feature.
Hodlnaut is also actively working on a recovery plan by consulting with Damodara Ong LLC.
Crypto Market’s Collapse
The crypto market started to show signs of struggle back in May, where two paired tokens, Luna and TerraUSD, collapsed.
You can watch this video to know more abut the collapse:
Soon afterwards, US crypto lender Celsius, as well as Singapore-based hedge fund Three Arrows Capital, filed for bankruptcy in July. In fact, according to court filings, Hodlnaut was one of Celsius’ institutional clients.
Here’s what you need to know about Three Arrows Capital’s bankruptcy:
Another Singapore-based crypto platform, Vauld, also suspended their withdrawals in early July.
Redditors have commented on this announcement, pointing towards a now-deleted Reddit post that warned people that Hodlnaut was going to collapse.
Responding to people who were lamenting the fate of their crypto that is now stuck in Hodlnaut, some Redditors said that one should never put all your eggs in one basket.
People also shared that people have been laid off in Hodlnaut recently, and that it seems like Hodlnaut really might collapse.
To all the crypto bros out there, maybe hold back on the markets for a little while.
Featured Image: Reddit