Hodlnaut, a troubled crypto-lending company, has cut off 80% of its workforce to decrease expenses. Previously, Hodlanaut had suspended withdrawals from its site, claiming “extreme market circumstances.”
After suspending withdrawals earlier this month, Hodlanaut has updated a blog post to discuss the most recent business changes. The company noted that it has just sought to be put under Judicial Management because it believes it is the greatest choice for stabilizing the company’s financial health.
The cryptocurrency lending platform stated that the Judicial Management would be advantageous for the company since it will prohibit Hodlanaut from selling its BTC and ETH assets.
In addition, the decision will assist Hodlnaut in regaining its previous momentum in terms of developing a recovery strategy and restoring the company’s complete ecosystem.
“We feel that judicial management would provide the most immediate and long-term benefits to our consumers. First, it would prevent the liquidation of Hodlnaut’s BTC and ETH holdings at today’s low values (which have dropped significantly from their all-time highs in 2021). Second, judicial management allows Hodlnaut to implement its recovery plan and repair the firm.”
Hodlnaut said that it anticipates restoring the asset-to-debt ratio to at least 1 and thereafter allowing customers to withdraw the entire value of their cryptocurrency holdings.
In an effort to recover and stabilise its finances, Hodlnaut has acknowledged that it has laid off 80% of its workforce as a cost-cutting strategy.
According to our evaluation, the present staff that we have kept is important for us to carry out critical duties.
Hodlnaut is not the first cryptocurrency startup that has cut its workforce to ease the financial strain. Leading crypto companies, like Coinbase, Crypto.com, Gemini, and Bybit, announced huge layoffs earlier this year, blaming the protracted crypto winter crisis.