Singapore-based Hodlnaut is the latest cryptocurrency lender to halt customer withdrawals due to the current market meltdown.
“We will be stopping withdrawals, token swaps and deposits with immediate effect,” the company wrote in a blog post. Monday. “We have made this difficult decision due to recent market conditions.”
The move comes as Hodlnaut, launched in 2019, focuses on stabilizing its liquidity as well as preserving its assets, it said in the statement.
Additionally, the company said it has withdrawn its application for a license with the Monetary Authority of Singapore, the country’s central bank.
Regarding the resumption of withdrawals and token exchanges, “we are unable to provide a specific date as the details have yet to be finalized between all of our stakeholders, but it will not be a short process”, said said Hodlnaut.
Hodlnaut, which allows speculators to earn interest on their crypto post-loan, joins a growing list of crypto-focused firms such as Celsius, Zipmex and Babel Finance in freezing withdrawals due to liquidity concerns.
In all, “Hodlnaut is a relatively small service, so we don’t expect this news to have a noticeable impact on the price of major assets, especially as the markets are showing an arguably more bullish structure than they were. when the crypto credit crunch started in June,” said Mikkel Morch, executive director of digital asset investment fund ARK 36. as the reason for her predicament, as they keep getting better.”
An update on the development of the matter is scheduled for August 19.
Last week (August 5), crypto lender Voyager Digital resumed cash withdrawals from customers.