In a blog post, Hodlnaut, founded in 2019, said it had made the “difficult decision” due to market conditions and has also said it will withdraw its licence application from the Monetary Authority of Singapore (MAS).
Singapore-based crypto lender Hodlnaut has suspended withdrawals, token swaps and deposits, marking the latest crypto outfit to be hit by the market slump.
In a blog post, Hodlnaut, founded in 2019, said it had made the “difficult decision” due to market conditions.
Hodlnaut is the latest Asian crypto outfit to have recently ceased withdrawals, following that of lenders Babel and Vauld.
Meanwhile, the demise of Singapore-based crypto hedge fund Three Arrows Capital had a major negative impact on the crypto market as many institutions had money linked to the firm.
Hodlnaut also said it would withdraw its application for a licence from the Monetary Authority of Singapore (MAS), which it was granted principal approval for in March this year, to provide digital token payment services.
In the blog post, Hodlnaut said it would now focus on “stabilising” its “liquidity and preserving assets, while we work to find the best way to protect our users’ long-term interests".
“We are actively working on the recovery plan that we hope to provide updates and details on as soon as permissible,” it added.
Hodlnaut, which has operations in Singapore and Hong Kong, allows users to earn interest on their cryptocurrencies by lending them to institutions.
The overall crypto market has plummeted to around $1trillion from more than $3trillion in November, according to Coindesk.