Sirwin
Sirwin

Annnnnd Another One Bites the Dust! Hodlnaut Halts All Withdrawals, Deposits, Swaps, Limits to Earning in Kind, Ceases Borrowing and Lending


Annnnnd Another One Bites the Dust! : Hodlnaut Edition

2022 is starting to look like the year of the death of CeFi. Just weeks after Celsius similarly halted withdrawals and entered into Chapter 11 Bankruptcy and in the wake of crises at BlockFi, Voyager, and Ledn, Hodlnaut has today announced the immediate halting of withdrawals, allegedly due to "recent market conditions" and in an effort "to focus on stabilising our liquidity and preserving assets, while we work to find the best way to protect our users’ long-term interests," hammering another nail into CeFi's coffin. 

They have also withdrawn their MAS license application (they are based in Singapore) and stopped other services such as swaps, earning in other assets, and borrowing and lending. The fact that they've stopped taking deposits is curious; one might think if there was a good chance of turning the business around, any further deposits would help. This could be a step to mitigate damages / limit liability in a potential fraud case if they know there is little chance of becoming viable again.

As far as their path back to viability, they "are consulting with Damodara Ong LLC on the feasibility and timelines of our intended execution plan and are strategising our recovery plan with our users’ best interests in mind. "

Hodlnaut had been known for their customer service and communication. They seemed to communicate earnestly with users in the beginning of the crisis, seemingly honestly alerting them to the massive withdrawals they were facing. Then they seemed to go quiet for a few weeks before this announcement... They have now made their social media communication channels, including even the Hodlnaut subreddit, private, so people cannot even see comments without being approved.

Luckily, after getting massacred in the Celsius debacle like Santino Corleone, I withdrew the vast majority of my assets from Hodlnaut a couple weeks ago and mostly dodged this bullet. Maybe their recovery plan will work or perhaps they're small enough to be "bailed out" (swallowed up) by Sam Bankman Fried's FTX / Alameda Capital or Nexo, but this seems like the end of Hodlnaut and another chapter in the Death of CeFi.

They say Bitcoin Maxis are created in bull market conditions like this. At the very least, this has really hammered home the adage we love to pay lip service to, "Not Your Keys, Not Your Coins."

I'll try to write more about my experiences thus far with CeFi and its apparent impending death, but this has spurred me to leave CeFi and start investigating DeFi and left me weary of centralization. I'll be writing about my journey into DeFi and several Dapps and strategies soon. 

They say Bitcoin Maxis are created in bull market conditions like this. At the very least, this has really hammered home the adage we love to pay lip service to, "Not Your Keys, Not Your Coins."

-----------------------------------------------

Referral Codes:

Crypto Exchanges and CEFI:  

Gemini ($10 in BTC):. https://gemini.com/share/dy4wm5ahl

Nexo ($10 in BTC): https://nexo.io/ref/buu2fi46dt?src=android-link

Kucoin: https://www.kucoin.com/ucenter/signup?rcode=rJPPMD3

Free Crypto:

Womplay (Free Crypto (EOS) & NFT's for Games): https://womplay.io?ref=TU94U42

Presearch (Free Crypto for Web Searches): https://presearch.org/signup?rid=2448640

Publish0x: https://www.publish0x.com?a=LDdwmRlXa1

Odysee (Free Crypto for Watching Youtube-like Videos): https://odysee.com/$/invite/@brothernumsee:8

Free Gift Cards (Incl. Amazon):

Bing Rewards (Web Searches): https://account.microsoft.com/rewards/rafwelcome?rh=39E446D7&ref=7510

Swagucks (Online Shopping, Surveys, Games): https://www.swagbucks.com/lp-savings-button?cmp=695&cxid=swagbuttonref&rb=17132792&extRefCmp=1&extRb=17132792

Fetch Rewards (Scanning Receipts): https://fetchrewards.onelink.me/vvv3/referraltext?code=NUGXK

Credit Card Offers:

Marriott Bonvoy Credit Card from Chase: https://www.referyourchasecard.com/252f/AX99XE9HK6

World of Hyatt Credit Card from Chase: https://www.referyourchasecard.com/205f/6QYS3BSNHZ

Chase Sapphire Preferred: https://www.referyourchasecard.com/6c/XEF70KK9LY

 

How do you rate this article?

4



Brother Numsee's Crypto Craze
Brother Numsee's Crypto Craze

Analysis and thoughts on buying, staking, and storing crypto.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.