The last few months have been a long and trying trip for crypto investors. This may go down as the worst crypto winter in history. And Algorand foundation has been added to the list of entities affected by the winter.
The Algorand Foundation has revealed that it has a $35 million hole in its balance sheet. This is as a result of exposure to embattled cryptocurrency lending firm Hodlnaut, which has paused withdraws since August 8.
Hodlnaut, a crypto lending firm, decided in August 2022 to freeze withdrawals and deposits as well as token swaps. Hodlnaut reasoned that the market conditions were poor. The news was no surprise to the crypto world, as it comes on the heels of a long list of other firms taking similar measures. The Algorand Foundation finds itself in a difficult $35 million situation that could put its investors’ funds at risk.
Algorand Foundation discloses exposure to a troubled crypto lender
The Algorand Foundation is a high-performance blockchain infrastructure built on the Ethereum network with smart contract capability. The Algorand ມູນນິທິ is a not-for-profit community group focused on expanding the Algorand ecosystem.
The Algorand Foundation announced this on its website on September 9 2022. Furthermore, the Foundation stated that it is doing everything possible to maximize asset recovery through legal channels.
Today we are informing the community that the Algorand Foundation has a $35 million USDC exposure to Hodlnaut, a Singapore-based crypto lender that was placed under Interim Judicial Management after suspending withdrawals from its platform on August 8, 2022.
Algorand ມູນນິທິ
Similar circumstances have resulted in considerable losses for crypto investors. However, this case differs from the others, and investors may not suffer as much as they did previously. The Algorand Foundation states that its $35 million exposure is less than 3% of its assets and sufficient for daily operations. As a result, it is unlikely to be affected or experience liquidity issues.
The Algorand Foundation stated that the largest amount of investment locked on their platform was “locked, short-term deposits.” However, due to Holdnaut suspending withdrawals, these funds are now inaccessible.
The Algorand Foundation Network has just announced a major capacity increase, with the most recent update allowing for significantly enhanced network performance. Cross-chain connections and transfers are now possible without the need for a bridge or validator networks, thanks to the upgrade.
According to the organization’s official statement, this would potentially address the issues that blockchain interoperability is currently facing. Not only is the network carbon-neutral, but it is also FIFA ຂອງ official blockchain partner and will soon power its non-fungible tokens.
Algorand fast upgrade is a game changer
Algorand has again amazed the community with a significant upgrade to its technology. And it’s ready to turn up the heat even more. With this new upgrade, Algorand is said to be quantum-secure and can now execute up to 6,000 transactions every second. However, this isn’t anything exceptional for ALGO; it has long been recognized as one of the cryptocurrency networks that processes transactions quickly.
Although other crypto networks are trying to compete with ALGO, none have been able to come close. In fact, ALGO has recently upgraded its mainnet, and transaction speeds are now faster than Bitcoin and Ethereum. This upgrade means that other crypto networks may literally be left in the dust.
Source: https://www.cryptopolitan.com/algorand-foundation-35m-exposure-to-hodlnaut/