Crypto lender platform Hodlnaut has laid off 80% of its staff
In a blog post published Friday, the firm added how the decision to lay off employees has been taken to reduce the firm’s expenditure.
Troubled crypto lender platform Hodlnaut has laid off 80% of its staff to reduce the firm’s expenditure. Hodlanaut had earlier halted withdrawals on its platform citing “extreme market conditions.”
Hodlanaut Applies To Be Placed Under Judicial Management
In an updated blog post, Hodlanaut has shed light on the latest company developments after halting its withdrawals earlier this month. The firm added that it has recently applied to be placed under Judicial Management and considers it the best option that may help the firm in stabilizing its financial health.
The crypto lender platform further added how the Judicial Management will prove beneficial for the firm as it will prevent Hodlanaut from liquidating its BTC and ETH holdings.
Furthermore, the decision will also help Hodlnaut gain its former momentum back in terms of formulating a recovery plan and rehabilitating the firm’s entire ecosystem.
“We believe that judicial management is the option which would most benefit our users now and in the long run. First, it would avoid liquidation of Hodlnaut’s holdings of BTC and ETH at today’s depressed prices (which have fallen greatly from their 2021 all-time highs)…Second, judicial management provides Hodlnaut with the opportunity to execute its recovery plan and rehabilitate the company. ” the blog further adds.
Hodlnaut further stated how it’s looking forward to restoring the asset-to-debt ratio to at least 1 and later allowing users to withdraw the full value of their crypto holdings.
However, in its bid to recuperate and stabilize its finances, Hodlnaut confirmed that it has laid off 80% of its staff as a measure to reduce the company’s expenses.
“The current team that we have retained are, in our assessment, a necessary headcount for us to carry out key functions.”
Hodlnaut is not the only crypto firm that has reduced its company staff to reduce its financial pressure. Earlier this year, leading crypto firms including Coinbase, Crypto.com, Gemini, and Bybit have also announced mass layoffs, citing the prolonged crypto winter crisis.