Although the Earth (LUNA) and UST earthquake have passed 6 months, the consequences are incredibly severe. One of the firms concerned in the liquidity crisis, Hodlnaut, is acknowledged for shedding $ 190 million.
As reported by Cointelegraph, the liquidity crisis resulting from the LUNA-UST crash has spread across the industry. Many significant names have fallen into a state of bewilderment, major to a crisis and forced to suspend operations. Among them is the Hodlnaut lending platform.
In early August 2022, Hodlnaut stopped swaps, deposits and withdrawals. About ten days later on, the corporation fired 80% of its personnel and utilized for judicial management to the Singapore government.
Since then, the Singapore law enforcement company has collected the paperwork, paperwork and data desired to take care of the situation. And in some inner paperwork, Hodlnaut admitted that the corporation suffered losses up to 190 million bucks due to the collapse of the FSO.
This figure of $ 190 million is not also surprising due to the fact when he approached the Singapore authorities, Hodlnaut also admitted the exact same, but confirmed that it was not due to the use of the Anchor Protocol.
However, the collected paperwork reveal the precise opposite, that most of the losses are due to Hodlnaut’s loan from UST on Anchor. Anchor is an Earth-primarily based lending platform with curiosity charges up to 18% / 12 months. At their peak, Anchor and UST have been observed as the steady curiosity charge model of the steady currency, but they have been the principal bring about of the fall of the FSO. At that time, much more than $ one billion on Anchor Protocol was liquidated in a single week by the LUNA-UST “storm”.
Therefore, in earlier media relations, Hodlnaut deliberately lowered its publicity to the Earth ecosystem. It may possibly be due to the fact the corporation nevertheless desires to “maintain its image” in the eyes of the local community and preserve its popularity with its partners.
Because the story “the lending platform takes users’ money to lend at a higher interest rate” sounds incredibly incorrect …
The LUNA-UST crisis occurred in a handful of days, May eight-14, 2022, but wiped out billions of bucks from the cryptocurrency industry. The affect of this crash was terrifying, affecting not only cryptocurrencies but conventional finance as very well. You can assessment the summary posting right here: Summary of LUNA-UST Developments, the Journey of “pumping” Earth two. and the controversy surrounding Do Kwon.
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