The Singapore High Court has made a significant decision regarding Hodlnaut, a crypto lender, by ordering its liquidation. The court's objective is to ensure that the company's 17,000 customers are reimbursed following the aftermath of Terra's decline and Hodlnaut's subsequent $193 million deficit.
Hodlnaut, a Crypto Lender, Faces a $193M Shortfall
Hodlnaut encountered difficulties when it temporarily suspended customer withdrawals in July 2022, citing unfavorable market conditions. In an attempt to salvage its operations, the company sought the court's protection through judicial management. Court documents revealed that Hodlnaut is facing a massive shortfall of approximately $193 million, highlighting the vulnerability of crypto lenders to market volatility.
OPNX, which has questionable connections to Three Arrows Capital (3AC), proposed a takeover of Hodlnaut with an offer of $30 million in FLEX tokens. However, the interim judicial managers of Hodlnaut deemed the offer inadequate due to the illiquidity of the tokens. As a result of its insolvency, Hodlnaut was ordered to wind up on November 10, 2023, by Judge Aedit Abdullah.
As the liquidators assume control, Hodlnaut faces the challenging task of unwinding its operations. EY Corporate Advisors issued a circular stating that the process will prioritize transparency and provide regular updates to creditors. Aaron Loh Cheng Lee, one of the appointed liquidators from EY, stated, "Responding to individual creditor queries may not be practical or cost-effective. Instead, the liquidators will consolidate their answers to creditor queries in their updates to all potential creditors."
We would love to hear your thoughts and opinions on Hodlnaut's mandated liquidation. Please share them in the comments section below.
Frequently Asked Questions
What is the best precious metal to invest in?
This question depends on how risky you are willing to take, and what return you want. Gold has been traditionally considered a haven investment, but it's not always the most profitable choice. For example, if your goal is to make quick money, gold may not suit you. If you have time and patience, you should consider investing in silver instead.
If you don't care about getting rich quickly, gold is probably the way to go. If you are looking for a long-term investment that will provide steady returns, silver may be a better choice.
What is a Precious Metal IRA, and how can you get one?
A precious metal IRA lets you diversify your retirement savings to include gold, silver, palladium, rhodium, iridium, osmium, osmium, rhodium, iridium and other rare metallics. These precious metals are extremely rare and valuable. These metals are great investments and can help protect your financial future from economic instability and inflation.
Precious metals are often referred to as “bullion.” Bullion refers actually to the metal.
Bullion can be bought via various channels, such as online retailers, large coin dealers and grocery stores.
You can invest directly in bullion with a precious metal IRA instead of buying shares of stock. This means you'll receive dividends every year.
Unlike regular IRAs, precious metal IRAs don't require paperwork or annual fees. Instead, you pay only a small percentage tax on your gains. Plus, you get free access to your funds whenever you want.
Is gold a good IRA investment?
Anyone who is looking to save money can make gold an excellent investment. It's also a great way to diversify your portfolio. But gold has more to it than meets the eyes.
It's been used as a form of payment throughout history. It's sometimes called “the world's oldest money”.
But gold, unlike paper currency, which is created by governments, is mined out from the ground. It's hard to find and very rare, making it extremely valuable.
The supply-demand relationship determines the gold price. The economy that is strong tends to be more affluent, which means there are less gold miners. Gold's value rises as a result.
On the other hand, people will save cash when the economy slows and not spend it. This leads to more gold being produced which decreases its value.
This is why investing in gold makes sense for individuals and businesses. If you have gold to invest, you will reap the rewards when the economy expands.
Your investments will also generate interest, which can help you increase your wealth. Additionally, you won't lose cash if the gold price falls.
How much gold should you have in your portfolio?
The amount of capital that you require will determine how much money you can make. For a small start, $5k to $10k is a good range. As you grow, it is possible to rent desks or office space. Renting out desks and other equipment is a great way to save money on rent. You only pay one month.
Also, you need to think about the type of business that you are going to run. In my case, I am running a website creation company, so we charge clients around $1000-2000/month depending on what they order. You should also consider the expected income from each client when you do this type of thing.
If you are doing freelance work, you probably won't have a monthly salary like I do because the project pays freelancers. This means that you may only be paid once every six months.
You need to determine what kind or income you want before you decide how much of it you will need.
I would recommend that you start with $1k-2k worth of gold and then increase your wealth.
How much should precious metals make up your portfolio?
To answer this question we need to first define precious metals. Precious metals have elements with an extremely high worth relative to other commodity. They are therefore very attractive for investment and trading. Gold is by far the most common precious metal traded today.
There are many other precious metals, such as silver and platinum. The price volatility of gold can be unpredictable, but it is generally stable during periods of economic turmoil. It is also not affected by inflation and depression.
As a general rule, the prices for all precious metals tend to increase with the overall market. However, the prices of precious metals do not always move in sync with one another. When the economy is in trouble, for example, gold prices tend to rise while other precious metals fall. This is because investors expect lower rates of interest, which makes bonds less attractive investments.
Contrary to this, when the economy performs well, the opposite happens. Investors want safe assets such Treasury Bonds and are less inclined to demand precious metals. These precious metals are rare and become more costly.
Therefore, to maximize profits from investing in precious metals, you must diversify across multiple precious metals. Furthermore, because the price of precious Metals fluctuates, it is best not to focus on just one type of precious Metals.
Statistics
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
External Links
investopedia.com
bbb.org
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
finance.yahoo.com
How To
The History of Gold as an Asset
Gold was a currency from ancient times until the early 20th century. It was universally accepted and loved for its beauty, durability, purity and divisibility. It was also traded internationally due to its high value. There was no international standard for measuring gold at that time, so different weights and measures were used around the world. For example in England, a pound sterling equals 24 carats. In France, a livre tournois equals 25. Carats of golden. Germany had one mark which equals 28. Carats.
In the 1860s, the United States began issuing American coins made up of 90% copper, 10% zinc, and 0.942 fine gold. This caused a drop in foreign currency demand which resulted in an increase of their prices. At this point, the United States minted large amounts of gold coins, causing the price of gold to drop. Due to the excessive amount of money flowing into the United States, they had to find a way for them to repay some of their debt. They decided to return some of the gold they had left to Europe.
Because most European countries did not trust the U.S. dollar, they started accepting gold as payment. However, many European nations stopped using gold to pay after World War I and started using paper currency instead. The value of gold has significantly increased since then. Today, although the price fluctuates, gold remains one of the safest investments you can make.
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By: Jamie Redman
Title: Singapore High Court Orders Liquidation of Hodlnaut, Providing Reimbursements to 17,000 Customers
Sourced From: news.bitcoin.com/singapore-high-court-mandates-hodlnaut-liquidation-sets-stage-for-17000-customer-reimbursements/
Published Date: Tue, 14 Nov 2023 09:30:46 +0000
