Hodlnaut prefers selling the company to liquidation

[Accardo]

The hodlnaut company owners have been on a critical debate with creditors like, Algorand, Samtrade custodia etc, on the next step that'll best serve their creditor well regarding paying back their debts, and recently they've concluded to sell it to some white knight investors that can run the company. A kind of exporting their users to their investor's companies.

Aside the arguements and conclusions of the managers of hodlnaut, I noticed that centralized cryptocurrency firms work on a weak network, weaker than the spider's web, trying to help themselves with people's money, lending and investing on each other's business. Hodlnaut's failure to continue operating was traced back to yesteryear, they lost over 190 millions on the Terra crypto fall and 500BTC on FTX exchange scam. Aren't they bitcoin enthusiast who are supposed to hold their money other than saving them on cryptocurrency exchanges or investing on some crap coins? A firm like hodlnaut should be leading the hold your crypto movement, but they don't, and other platforms would fail because hodlnaut failed.

The rapport these cryptocurrency platforms have aren't for good, it keeps failing, once a company in that network is affected others go in for it too. They're just one big network of failures that can't withstand the bear market.

https://cointelegraph.com/news/hodlnaut-founders-propose-selling-the-firm-instead-of-liquidation

[Z-tight]

Aren't they bitcoin enthusiast who are supposed to hold their money other than saving them on cryptocurrency exchanges or investing on some crap coins? A firm like hodlnaut should be leading the hold your crypto movement, but they don't, and other platforms would fail because hodlnaut failed.

Hodlnaut is a crypto lending company, they aren't BTC enthusiasts and they surely cannot lead a movement for people to hold their crypto in self custody, because if they do that how are they going to operate, they are doing the exact opposite of leading a hold your crypto movement by attracting people to deposit their crypto with them and earn APY by doing so. It is because of this supposed interest that many people do the wrong thing of lending their crypto to lending firms instead of having it in their self custody. Centralized exchanges and services do not want you to hold your crypto, they want you to give it to them so they can trade or gamble with it for profit, remember when CZ said 99% of people would lose crypto in self custody .

The rapport these cryptocurrency platforms have aren't for good, it keeps failing, once a company in that network is affected others go in for it too.

That is the domino effect, when one of these platforms collapses, there are many others that would probably be exposed to them, and would eventually collapse too.

They're just one big network of failures that can't withstand the bear market.

These centralized platforms are mostly not affected by the bear market, they collapse because they gamble and trade with their customers' money, tl;dr they misappropriate funds and lose it.

[Accardo]

Aren't they bitcoin enthusiast who are supposed to hold their money other than saving them on cryptocurrency exchanges or investing on some crap coins? A firm like hodlnaut should be leading the hold your crypto movement, but they don't, and other platforms would fail because hodlnaut failed.

Hodlnaut is a crypto lending company, they aren't BTC enthusiasts and they surely cannot lead a movement for people to hold their crypto in self custody, because if they do that how are they going to operate, they are doing the exact opposite of leading a hold your crypto movement by attracting people to deposit their crypto with them and earn APY by doing so. It is because of this supposed interest that many people do the wrong thing of lending their crypto to lending firms instead of having it in their self custody. Centralized exchanges and services do not want you to hold your crypto, they want you to give it to them so they can trade or gamble with it for profit, remember when CZ said

When I said Bitcoin enthusiast, atleast they are not newbies that's my point They behave like the market volatility is new to them. Gambling with people's money is not the right way to operate either, it's always good to have proper method to make money for the company and its customers than risking it on things that is not certain. Are you saying they're not aware of the dangers of such a neferious action? Now it affects the workers and customers at same time the reputation of hodlnaut company.

[noorman0]

-snip-
Aren't they bitcoin enthusiast who are supposed to hold their money other than saving them on cryptocurrency exchanges or investing on some crap coins?

If the concentration is full-fledged business, then there is no "stand" money in their model. In fact they are happy to have other (reputable) central financial services listed on their site as partners, initially emphasizing to the public how strong their foundation and support is.

-snip-
The rapport these cryptocurrency platforms have aren't for good, it keeps failing, once a company in that network is affected others go in for it too. They're just one big network of failures that can't withstand the bear market.

One side that may never have thought that apart from supporting each other, they will also be affected by each other's financial condition.

[NotATether]

Isn't DCG owned by a bunch of investors too, and they still had to close down their Genesis lending service anyway?

Imvestors may not necessarily have the capacity to keep a crypto company afloat during a crisis, especially in the case of CeFi companies.

[yhiaali3]

Yes, it is like a spider's web on the one hand because it is weak and not based on a strong foundation. It can also be likened to dominoes on the other hand, because the fall of one company leads to the fall of dozens of companies behind it.
You can see the impact of the FTX fall, for example, in this image, where it shows the number of companies that fell or were affected by the FTX incident:

                                             

As you can see, there are companies associated with FTX and there are companies associated with FTX indirectly through other companies. The fall of FTX led to the fall of all these companies.

This also indicates that all these companies, including FTX, were working with investors' money and not with their own money, so I don't get upset when I hear about the closure of these companies because it is a market cleanup.

[hugeblack]

I don't know how much these companies are exposed to each other, but really what are they doing with depositors' money? An attempt of greed for quick profit and giving high interest rates is not supposed to be chaotic in this way, and therefore, until regulation comes, people must suffice using the platforms for trading while withdrawing any amount that they do not owe for trading. As for the idea of ​​lending, staking, etc., the only loser in it is the depositor, because if any bankruptcy applications take several years and you may not get your money (if happen)