‘Vauld’ Halts Deposits, Withdrawals, and Trading Amid Financial Blows
A crypto exchange and lending venture which is headquartered in Singapore – Vauld – has put a stop to its deposits, trading, as well as withdrawals because of some instant impact of the financial challenges undergone by it, as mentioned by it on Monday.
Coinbase-backed Vauld Faces Severe Market Conditions
The startup has been operating for three years with Pantera Capital, Coinbase Ventures, as well as Valar (backed by Peter Thiel) among the entities that support it. Vauld has collected up to $27M in its operations however – at the moment – it has declared to be experiencing some financial hard times during the downturn witnessed within the market. That has become the reason behind the decision of the venue to halt the consumer withdrawals of nearly $198M since the 12th of this month.
Darshan Bthija – the chief executive as well as the founder of Vauld – pointed out that the venture is delving into the restructuring possibilities and has some engagement with Kroll to obtain the relevant advice. He added that the venue has also contacted Rajah & Tann and Cyril Amarchand Mangaldas for advice regarding the good legal options in Singapore and India. The venture leans to apply to the courts within Singapore to have a moratorium.
Vauld to Take Legal and Financial Advice to Move ahead
In his words, they are pretty much confident that after having advice from their legal and financial advisors, they will be in a better position to find out some solution and move forward to shield the interests of the stakeholders as well as the consumers. In one of his blog posts, he noted that the venture would carry out some precise preparations for specific consumers, making them tackle the margin calls thereof. It is still ambiguous how many consumers are served on the behalf of Vauld.
Vauld permits its users to generate what is categorized by it as the top interest rates within the whole industry on the prominent cryptocurrencies. On the website thereof, it declares to offer up to 12.68% yields on annual basis for staking some stablecoins taking into account BUSD and USDC. Whereas in the matter of Ethereum, Bitcoin, and the other crypto tokens, Vauld offers an interest rate of nearly 6.7%. The venue permitted the consumers to borrow in exchange for the tokens in their possession and additionally provided them with a few other trading services.
On the official web portal of Vault, the company notes that it allows customers to borrow a loan to value (LTV) of up to 66.67% in exchange for their tokens along with immediately getting their loans approved. Similar to some tech stocks, several tokens within the crypto space have gained an increase of more than 70% in their value during the previous 6 months period. As per Bathija, they are pursuing to know about the familiarity of the consumers with the Vauld venue to determine their position in the processing of any unique instructions or requests in this case.
