The protocol in a press release issued on Monday cited prevailing market conditions as the motive behind the decision. Hodlnaut revealed that the decision would help stabilize its liquidity and safeguard assets.
Hodlnaut, with this decision, joins the growing list of crypto firms enduring the harsh implications of the crypto winter. Recall that a fellow crypto lender, Celsius, also halted withdrawals, deposits, and trading on its network a few months ago. As of press time, the crypto lender is yet to update its customers about a possible resumption of those operations.
Other protocols, including Vauld, and Voyager Digital, also took the same decision, citing bad market conditions. Although, Voyager is now intending to resume withdrawals by August 10.
Hodlnaut said its customers would only be able to access their respective accounts to check balances. Additionally, it says they will also be able to export their transaction history and interest statements. However, the crypto lender reiterates its commitment to paying out interest accrued according to customers’ balances. According to the protocol, the payment will be made every Monday.
The Singapore-based protocol also retracted its license application from the Monetary Authority of Singapore (MAS). This, as revealed, implies that the protocol no longer intends to run as a regulated virtual payment token provider in the country.
Additionally, the protocol halted every lending and borrowing activity on its platform. Hodlnaut assures customers that it is working assiduously to recover quickly from the prevailing turmoil. Also, it promised to avail customers with more information by August 19.
According to the crypto lender, communications with customers will only be done through email, Twitter, and Telegram handles. As announced, other social media handles belonging to the protocol will be deactivated till further notice.
Before this decision, July’s protocol unveiled a new asset, PAX Gold, to enable customers to rake in profits. As revealed, the token was made available on the platform along with available on the platform alongside other assets like ETH, BTC, USDT, USDC, DAI, and wBTC. Then, Hodlnaut noted that the tokens possess several attributes, including interest account, fixed deposits, preferred interest payout, and Token swap.
The firm announced its intention to consult a legal firm Damodara Ong LLC in Singapore. The consultation will discuss possible solutions to its prevailing crisis. Hodlnaut will discuss the expected time schedules for executing its recovery plan with the legal firm. According to the protocol, this will guide its step toward managing the problem. It, however, urges all customers to be patient, stressing that the management team of the protocol will do everything to ensure a speedy recovery.
