During this bear market, the crypto-industry is plagued by mass layoffs like the case of Holdnaut, which just fired 80%
Hodlnaut under judicial management?
Hodlnaut, the Singapore-based company declared its placement under court management on Tuesday, August 16.
Hodlnaut is a crypto-lending platform in the CeFI (Centralized Finance) sector. Recently, the company stated that its total assets under management were over $500 million. However, last week the company announced that it was suspending deposits, withdrawals and exchanges from its platform, creating panic among all its users.
The management of a healthy accounting within Hodlnaut does not seem to be possible anymore for the company. In fact, without declaring bankruptcy, the Asian company wants to actively protect itself against its creditors to avoid a chain of defaults.
Summary of layoffs in the crypto-industry
A massive layoff!
However, things seem to be going from bad to worse for Hodlnaut: yesterday, in a statement to its community, the company gave an update on its difficulties, and they seem inextricable: according to CoinDesk, the group placed under bankruptcy protection has been forced to lay off nearly 40 people (a whopping 80% of its workforce) and would be under extensive investigations by the Singaporean law enforcement.
Since the collapse of Terra, the market has entered a phase of even more pronounced decline than the one that began in November 2021. This episode has pointed out many flaws among the various players in the cryptocurrency market, leading to a wave of layoffs.
Whether as a preventive measure or due to real difficulties, the cuts are sometimes significant, often exceeding 20% of the staff.
The reason given is usually the same: the phase of uncertainty that the market is currently experiencing.