Yet another domino in the centralized crypto lending firm meltdown has fallen. Vauld, another crypto lending firm similar to Celsius, made an official corporate announcement today that they have halted customer withdrawals to help stop their own financial collapse due market volatility and the extreme amount of leverage that was provided to firms like Three Arrows Capital, which we reported in this news post has recently filed for Chapter 15 bankruptcy in New York to try and protect them from defaulting to creditors, such as Vauld and Celsius.
Run On The Crypto Banks
In the announcement they go on to state that since June 12, which was when Celsius first halted withdrawals, Vauld has seen more than $197 million in customer withdrawals, essentially creating a run on the crypto banks.
They go on to state that they are working with several different financial advisors to get a grasp on the current situation and see how they can restructure the business to keep it in tact. They state that they are on the case. Quoting the official announcement:
Our management remains fully committed to working with our financial and legal advisors to the best of our abilities to explore and analyse all possible options, including potential restructuring options, that would best protect the interests of Vauld’s stakeholders.https://www.vauld.com/blog/corporate-statement/
They also posted the announcement in a Twitter thread that you can see below:
Not Your Keys, Not Your Cheese
I saw this on a tweet recently and decided it’s better than Not Your Keys, Not Your Coins, lol. But the statement means the same thing. If you are holding your crypto in one of these ‘crypto lending firms’ or ‘crypto banks’, you are basically shooting yourself in the foot. These firms are no better than a traditional bank. You do not own your crypto, they do and just have it marked under your account. But as we have seen in the last month, these firms are not safe.
Our suggestion is to take responsibility for your own funds and keep them in your own wallet, with your seed phrase. If you want to lend your money out, look at trusted decentralized platforms that run on smart contracts, such as Aave which interacts with Ethereum, Polygon, and soon coming to EVMOS in the Cosmos ecosystem, as well as Venus.io protocol on Binance Smart Chain. Those are both platforms where you keep your funds secured by your own wallet keys.
Keeping Your Seed Phrase Safe
Because of all of these issues going on with these firms, and to help you secure your private seed phrases, we created this book that we just released on Amazon as a paperback book! Use this book to write down your 12 or 24 word seed phrase, as well as wallet info, passwords, and an area to write notes on how to use it. This allows you to write notes to your loved ones, in case of emergency, or as a note to yourself on how to use the wallet. We suggest keeping this book in a safe place or just locked up in a safe.
Nothing said is financial advise.
This is for educational and recreational purposes only!
Stay safe in these volatile markets and don’t get rekt!
Stake with our Cosmos ecosystem validator, carbonZERO
Trade with me on Apollo X on BSC
Follow us on HiveHustlers.io and LeoFinance.io, both on the Hive Blockchain:
As well as on Twitter at https://twitter.com/coinlogiconline
Now posting to Odysee https://odysee.com/@coinlogictv
Videos by @thelogicaldude are posted to 3Speak through his account and posted to the Coin Logic TV channel on Youtube.