See More

Algorand Foundation Discloses $35M Exposure in Hodlnaut

2 mins
Updated by Ryan Boltman
Join our Trading Community on Telegram

In Brief

  • Algorand foundation has disclosed that it invested in embattled crypto lender Hodlnaut.
  • The blockchain network had also invested in Three Arrows Capital.
  • Algorand recently had an upgrade that increased its mainnet performance by 5x.
  • promo

Algorand Foundation has announced that it has a $35 million USDC exposure in troubled Singapore-based lender Holdnaut.

According to Algorand Foundation, its $35 million exposure is less than 3% of its assets and surplus to day-to-day requirements. Thus, it is unlikely to be affected or suffer any liquidity issues.

It further explained its reasons for putting funds in Hodlnaut, saying as part of its mission, the foundation “invest a portion of our surplus treasury capital to generate yield for the purpose of Algorand ecosystem development, and these funds were invested for that purpose.”

Most of the investments were short-term locked deposits, it claimed, and the suspension of withdrawals by Holdnaut made those investments inaccessible.

Meanwhile, the foundation claimed it is pursuing all legal means to recover its funds. Part of those efforts led to the appointment of Algorand Foundation nominees as interim judicial managers to “identify, preserve, and protect Hodlnaut’s assets until further court action begins.”

Algorand is Exposed to Three Arrows Capital

Algorand Foundation is also exposed to the bankrupt crypto hedge fund, Three Arrows Capital. According to court filings, the foundation was involved in a one-time OTC trade with the hedge fund, but 3AC violated lockup terms.

Hodlnaut was one of the crypto firms affected by the Terra Luna crash that led it to suspend withdrawals on August 8.

Court filings show that Hodlnaut had about $317 million in Terra USD (UST) before the crash and lost $189.7 million. The company is now under Interim Judicial Management.

Algorand Upgrades Network

Algorand Network recently completed an upgrade that increased the network capacity significantly. The upgrade also added State Proofs to the network.

According to its official announcement, State Proofs make cross-chain connections and transfers possible without needing a bridge or validator networks. This could eliminate the current challenges facing blockchain interoperability.

The network, which prides itself as the only carbon-neutral blockchain network, is also the official blockchain partner of FIFA and will power the non-fungible tokens that the football governing body plans to launch.

For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here.

Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024
Harambe AI Harambe AI Explore
Uphold Uphold Explore
Exodus Exodus Explore
Coinbase Coinbase Explore
Chain GPT Chain GPT Explore
Top crypto projects in the US | July 2024

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Oluwapelumi-Adejumo.png
Oluwapelumi Adejumo
Oluwapelumi believes Bitcoin and blockchain technology have the potential to change the world for the better. He is an avid reader and began writing about crypto in 2020.
READ FULL BIO
Sponsored
Sponsored