The end of the tunnel is still far away – Hodlnaut continues to live in cryptocurrency price hell. Impoverished by the collapse of UST, the Terra blockchain stablecoin, the platform specializing in crypto-currency loans had to set aside 80% of its workforce. However, it seems the black streak isn’t over yet…
Hodlnaut a victim of the crypto market crash
Colleagues from the Block tell us today that Hodlnaut declares a financial deficit of 193 million dollars. Along with this is a request for judicial protection against creditors to avoid liquidation of the company.
The affidavit so announces 88 million dollars property for an unpaid obligation of 281 million dollars. The deficit is then approx 193 million dollars. However, the company has been seeking a reprieve from creditors since August 16 to give it more time to resolve its financial problems.
Also, according to The Block, there are other points worth noting in Hoddlenaut’s statement:
- 317 million dollars at UST they were in Terra’s Anchor Protocol;
- Between June 14 and July 15 Holdnaut had to deal with a capital flight from its users;
- The a sharp drop in the price of bitcoin and Ether also influenced the platform.
In his prime, Hodlnaut planted 750 million dollars before the collapse of the Terra blockchain. Several solutions for compensating damaged customers are being studied: limited exits with partial compensation, discussions with liquidity providers, such as FTX. However, the company specifies that it is not not bankrupt. Indeed, the cryptocurrency platform points out that the price of cryptocurrencies is bearish, but yes its sector remains dynamicespecially for venture capitalists.
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