Coinbase-backed Vauld becomes the latest crypto lender to pause withdrawals
bold publication On July 4, due to volatile market conditions and impacts on key business partners, withdrawals, transactions and deposits on the platform will be immediately suspended.
The statement also said users have withdrawn $ 197.7 million since June 12, due to heightened concerns about CeFi lenders the same day Celsius announced similar actions to “stabilize liquidity and operations.” Stated.
At this stage, it is unclear if Vauld has bad debt and is facing a default or margin call.
Vauld explores restructuring
Vauld said he hired a team of advisors to investigate the possibility of restructuring the company to protect the interests of its stakeholders.
“To facilitate this, we used the services of Kroll Pte Limited as financial advisors and Cyril Amarchand Mangaldas and Rajah & Tann Singapore LLP as legal counsel to India and Singapore, respectively.”
Message from Vauld co-founder Darshan Batiya Through the company’s Twitter account, we reiterated our intention to find the “best solution for our customers.”
We have endeavored to be a good crypto lending platform. This is the goal from the first day. We are committed to finding the best solution for our customers.
Message from @darshanbathija 🧵
— Vauld (@VauldOfficial) July 4, 2022
Bold on June 16 when the story of Celsius exploded Tweet It’s a business, and it means that its “balanced and conservative approach” and “fundamentally strong strategy” firmly support it.
Accompanying Blog post Vauld said he was not exposed to Three Arrows Capital or Celsius and maintained sufficient liquidity.
Vauld will continue to work normally
“We have always maintained a balanced and conservative approach to liquidity management. Bullish and bearish executions are inevitable and we have developed a fundamentally strong strategy to explain these cycles. increase.”
Click here for details: https://t.co/6yWVozTydE
— Vauld (@VauldOfficial) June 16, 2022
The story is unraveled
A few days later, on June 21, Vauld announced a 30% reduction in employees. Money control..
Batya said reductions primarily affect the role of marketing and talent acquisition. However, employees with take points receive two months’salary and 12 months’ health insurance to help them find a new job.
“Two months of their salary are paid as severance pay and retain a signature and / or enrollment bonus. 12 months of health insurance for them and their families, and our talent team works closely with them. Collaborate with us to find a great place to work. “
In general terms, Binance founder Changpeng Zhao (CZ) said VC-funded platforms “tend not have established a real business model.”[s].. “
Unpopular Opinion: Be careful when using platforms that require VC funding, but often you don’t yet have a real business model.
(Generalized, of course, there are exceptions)https://t.co/lI1pvdPdKr
— CZ 🔶 Binance (@cz_binance) July 4, 2022
Bold went up $ 25 million In a Series A funding round led by Valar Ventures in July 2021 with Coinbase Ventures in attendance. VC Investor The company includes Pantera and Robot Ventures.
