Cryptocurrency lending platform Hodlnaut has frozen withdrawals, deposits and token swaps after facing "difficult market conditions," according to an Aug. 8 announcement.
The Singapore-based firm, founded in 2019, said the decision was taken to focus on stabilizing liquidity and preserving assets while it works on a long-term solution.
Hodlnaut also withdrew its license application to the Monetary Authority of Singapore (MAS).
The company is the latest in a line of crypto lenders that have buckled under market pressure this year, with Celsius Network and Voyager Digital both declaring bankruptcy. The total crypto market cap has slumped to about $1 trillion from more than $3 trillion in November.
Hodlnaut is consulting with Singapore-based law firm Damodara Ong on a timeline for a plan to preserve user assets.
A further update will be issued by Hodlnaut on Aug. 19.
In March last year, Hodlnaut partnered with Nexus Mutual, an insurance company that specializes in decentralized finance.
The firm's LinkedIn page states that it has more than $500 million in assets under management.