Hodlnaut, a Singapore-based cryptocurrency lender and borrower, halted withdrawals over liquidity issues caused by harsh market conditions earlier this month. Later, it sought creditor protection to develop a recovery strategy.
Hodlnaut dismisses 80% of its employees
According to a recent blog post, the company is working on ways to stabilize its liquidity, reduce expenses, and keep operations in Singapore. 40 of Hodlnaut’s workers, or around 80% of the workforce, have been laid off due to the measures. Also, the APR (annual percentage rate) is now zero.
“Since we halted withdrawals, we have also laid off 80 percent of our employees (being approximately 40 employees), in order to reduce the company’s expenditure. The current team that we have retained are, in our assessment, necessary headcount in order for us to carry out key functions,” the company stated.
Although Hodlnaut is having financial difficulties, the company has promised its customers that their assets are not completely lost. Until further notice (which will be in the hands of its Judicial Manager once appointed), withdrawals are currently halted. However, the company is exploring potential solutions enabling users to access “emergency exit liquidity,” pending the results of discussions and approvals from relevant parties.
Among other things, the company wishes to avoid liquidating its BTC and ETH holdings at today’s depressed prices, which it says “have fallen greatly from their 2021 all-time highs.
Major exchanges lay off workers
Financial pressures have forced several cryptocurrency companies, like Hodlnaut, to lay off employees. Earlier this year, top cryptocurrency companies, including Coinbase, Crypto.com, Gemini, and Bybit, have also announced huge layoffs, blaming the lingering crypto winter crisis.
