Huddlenott, a cryptocurrency lending firm, has decided to halt withdrawals due to market conditions. The firm had $500 million in assets under management and offered up to 7.25% annual percentage yield (APY). Despite claiming no exposure to luna, a Twitter researcher found that Huddlenott’s UST wallet deposited millions into Anchor. Similar to other firms like Celsius and Voyager, depositors may be considered unsecured creditors in the event of bankruptcy, meaning they may not be able to recover all of their assets. The content advises individuals to self-custody and use their own wallets for safety in the crypto market.
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Another one bites the dust: Huddlenott halts withdrawals
Following the recent collapse of Celsius and Voyager crypto lending firms, Huddlenott, another player in the industry, has now made the difficult decision to halt withdrawals. The main reason behind this decision is attributed to the current market conditions.
Market conditions impact Huddlenott
Similar to Celsius and Voyager, Huddlenott held approximately $500 million worth of assets under management. As is customary in the crypto lending space, they claimed to offer an attractive annual percentage yield (APY) of up to 7.25%.
Although Huddlenott boasted having no exposure to Luna, a popular cryptocurrency, a Twitter researcher by the username Fatman managed to track down their UST wallet, which had been depositing millions into Anchor, another platform.
Depositors as unsecured creditors
In the unfortunate event of bankruptcy, depositors who have trusted their assets with Huddlenott, as well as with Celsius and Voyager, may be categorized as unsecured creditors. This means that they are not able to fully recover the entirety of their assets.
The importance of self-custody
Considering these recent incidents, it is paramount for individuals involved in the crypto market to prioritize self-custody and the use of their own wallets. Relying solely on third-party platforms for holding and managing assets may expose one to potential risks.
It is prudent to be proactive in safeguarding one’s investments and following safety tips. For more guidance on staying secure in the crypto market, feel free to follow my account for future updates and tips.
