At this point, centralized crypto platforms are making crypto look like a scam and that is not good at all, recently Singapore-based crypto lending platform Hodlnaut just announced that they are freezing or stopping all user's withdrawals due to the liquidity problems they are having, the funny thing is we have seen this before it was the same move celsius, voyage and 3AC pulled before they filed for bankruptcy a month or so ago, the only difference between Hodlnaut and other crypto platforms that suspended their firm's withdrawal process before they filed for bankruptcy, theirs is not because they invested in LUNA, which crashed and caused a lot of chaos in the crypto market.
But in my opinion, Hodlnaut's liquidity issue seems to be the worst of them, although they talked about paying or allowing their customers to withdraw when they have slotted their liquidity issue out but honestly, I doubt think that is going to happen for the reason being that in addition to them freezing withdrawal process and not allowing their customers to withdraw, they also added that they have withdrawn their license application from the Monetary Authority of Singapore, meaning that they are not offering crypto service anymore, that is why I don't believe they will ever allow their customers to withdraw their hard-earned money invested.
This is why I said crypto lending platforms and programs are becoming too risky and are making crypto look like a scam, they are overleveraging by offering mouth-watering offers and when they get into liquidity problems like this they can't handle it, but I have a question do they not plan saving up rainy day funds or have back up funds just like FTX and Binance. Instead the result to suspending or stopping withdrawals, locking up your customer's hard-earned money until they go bankrupt.
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