The Coinbase-backed startup announced the move on Monday, following the likes of Celsius, Babel Finance and CoinFLEX.
- Crypto-loan platform Vauld stops withdrawals.
- He cited extreme market conditions and recent mass liquidations.
- Otras como Celsius, Babel Finance y BlockFi también enfrentan dificultades de liquidez.
Vauld , a cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. and lending platform, informed its customers on Monday that it was suspending withdrawals, trading and deposits with immediate effect due to “ volatile market an area or arena, online or offline, in which commercial dealings are conducted. conditions “.
In a blog entry the directors said that Vauld was facing “financial challenges”. in the face of a number of factors, including the recent price slowdown in the cryptocurrency market and the difficulties experienced by some of its key trading partners as a result of this scenario.
We are facing challenges despite our best efforts. This is due to a combination of circumstances such as the volatile market conditions, the financial difficulties of our key business partners inevitably affecting us, and the current market climate.
— Vauld (@VauldOfficial) July 4, 2022
The Singapore-based platform indicated that, in the last two weeks, has seen withdrawals of more than USD$197 million. which has hampered its ability to operate normally. The liquidations began to take place on 12 June, following rumours of insolvency at Celsius yThree Arrows Capital, added Vauld .
“ We have taken the difficult decision to suspend all withdrawals, transactions and deposits on the Vauld platform a place to buy, sell and store cryptocurrency with immediate effect. “, the company’s CEO Darshan Bathija wrote in the release.
Vauld freezes withdrawals
Vauld which is backed by reputable cryptocurrency exchange Coinbase is an American company that operates a cryptocurrency exchange platform. said in the statement that it is exploring possible restructuring options. In the interests of seeking solutions to the challenges it faces, the firm has engaged with Kroll for financial advice and with Cyril Amarchand Mangaldas and Rajah & Tann for legal advice in India and Singapore.
He also said he is currently in talks with potential investors and intends to seek a moratorium from the Singapore courts, according to Bathija.
“ We are confident that, with the advice of our financial and legal advisors, we will be able to arrive at a solution that best protects the interests of Vauld’s clients and stakeholders. “, the CEO wrote in the blog post, adding that they will formulate “ specific agreements “for certain customers who need to meet their margin calls.
The ad, as you rememberThe Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain. yCrypto Briefing, comes just a few days after the company assured its customers that it was liquid and operating as usual. “ We have no exposure to Celsius or Three Arrows Capital, and remain liquid despite market conditions. In the last few days, all withdrawals were processed as usual and will continue to be so in the future. “, the firm said June 16 in a blog post.
Formerly called Bank of Hodlers , Vauld offers attractive annual returns of up to 12.68 % when betting (stake) stablecoins such as USDC and BUSD, as well as returns of up to 6.7 % on cryptocurrencies such as Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. y Ethereum a decentralized open-source blockchain with smart contracts functionality. . According to Crypto Briefing had more than 1 million clients and more than USD $1 billion in assets under management by May 2022.
The platform is also backed by several high-profile investors. Last year it raised $25 million from firms like Valar Ventures the Peter Thiel, Capital capital is most commonly defined as the large sum of money you would use to invest. Panther y Coinbase Ventures with the intention of expanding its business into cryptobanking.
More crypto companies in trouble
The news makes Vauld in latest cryptocurrency firm to halt customer withdrawals amid market turmoil. In addition to Vauld other lending platforms and companies in the sector have faced financial difficulties in recent weeks including Celsius , CoinFLEX , Babel Finance , BlockFi and the hedge fund, Three Arrows Capital .
As well as Vauld , the other cryptocurrency lenders have also opted for measures such as freezing withdrawals and planning to restructure, while cryptocurrency giant Three Arrows (3AC) appears to be on the verge of closing, as it was recently reported that it will be would have officially declared in bankruptcy before a New York court on Friday.
The contagion of liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. and insolvency problems arise in the aftermath of the historic implosion of the Earth in May and the subsequent broader collapse in the market.
The capitalization of cryptocurrencies has shrunk to less than $1 trillion from its peak of USD $3 trillion last year. Meanwhile, Bitcoin struggles to hold at the $20,000 level, just over 70% down from its price peak near $70,000 in November.
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Article by Hannah Estefania Perez / DiarioBitcoin
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