As it navigates “financial issues,” Vauld, a Singapore-based cryptocurrency lending, and exchange firm, has banned withdrawals, trading, and deposits on its platform of the same name. The three-year-old business, which has raised approximately $27 million from investors including Pantera Capital, Coinbase Ventures, and Peter Thiel-backed Valar Ventures, claimed that the market collapse had forced customers to withdraw about $198 million since June 12.
Darshan Bathija, the founder and CEO of Vauld, said the company is looking at restructuring possibilities and has consulted with Cyril Amarchand Mangaldas and Rajah & Tann in Singapore and India for legal counsel as well as Kroll for financial guidance. The firm plans to submit a moratorium request to the Singaporean courts. He added that the startup will make “specific arrangements” for some customers who must meet their margin calls, saying, “We are confident that, with the advice of our financial and legal advisors, we will be able to reach a solution that will best protect the interests of Vault’s customers and stakeholders.”
Read More:
- News about Holmes County: A-Bomb Squad Is Dispatched To Detonate
- News About Dall-E: Why The Ai Image Generator Is Such A Big Deal?
Customers of Vauld can earn what the company bills as the “highest interest rates on major cryptocurrencies in the industry.” According to its website, it offers 6.7 percent on Bitcoin and Ethereum tokens and 12.68 percent on a number of so-called stablecoins, including USDC and BUSD. Customers could borrow money against their tokens via the platform, which also provided access to a number of additional trading services.
On its website, Vauld claims that it gives users the option to borrow money against their tokens up to an LTV (loan to value) of 66.67 percent and “instantly” accepts loans. In the last six months, the value of several crypto tokens has fallen by over 70%, similar to other tech companies. “We ask for the Vault platform’s users’ understanding that we won’t be able to fulfill any new or additional requests or instructions in this regard. According to today’s post by Bathija, “Specific arrangements will be established for customer deposits as may be necessary for some customers to meet margin calls in connection with collateralized loans.
The announcement comes two weeks after Vauld reduced its workforce by 30%. The action surprises me. On June 16, Bathija reassured Vauld consumers that the platform had no exposure to Three Arrows Capital, one of the well-known crypto hedge funds that filed for Chapter 15 bankruptcy over the weekend, or Celsius, another lending firm that is dealing with mounting financial difficulties. “Despite the state of the market, we are still liquid. All withdrawals have been processed as usual over the past few days, and this will stay the same going forward, according to a previous post by Bathija.
Unpopular opinion: careful when using platforms that require VC funding, they often don’t have a real business model yet.
(over generalization, there are exceptions of course)https://t.co/lI1pvdPdKr
— CZ 🔶 Binance (@cz_binance) July 4, 2022
Many seasoned cryptocurrency professionals, including Changpeng Zhao, the founder, and CEO of Binance, have recently issued warnings that many more Defi sites are in danger of collapsing. Zhao claimed in a recent podcast that Binance had recently spoken with over 50 companies to assess finance and bailout prospects for some enterprises. He explained that “the same offer that you see in the press of other individuals looking at, they usually come to us first.”
“Of any exchange, we have the biggest cash reserves. Although we try to conserve the industry as much as we can, not all projects are worthwhile. With ailing cryptocurrency lender BlockFi, FTX’s U.S.-based arm signed a contract on Friday that provides the cryptocurrency exchange the chance to purchase the firm for up to $240 million depending on its performance. In a fundraising round, it revealed in March 2021, that BlockFi, one of the companies that liquidated at least some positions held by Three Arrows Capital, was valued at $3 billion.
For more information like this do visit lakecountyfloridanews.com
