Source : coingape.comhttps://cdn.coingape.com/wp-content/uploads/2018/01/22133827/nigBtcScam-1024x536.jpg
The turbulent times in the cryptocurrency market raised doubts over safety of customer funds on exchanges. In the recent times, the crash of Terra network had a ripple effect on all players in the market. In these circumstances, doubts are being raised over Vauld fund safety.
What Caused Vauld To Suspend Withdrawals, Trading & Deposits?
Earlier on Monday, cryptocurrency exchange Vauld said it had suspended all withdrawals, trading and deposits on its platform with immediate effect. The Singapore-based company added that it was exploring restructuring options with its financial and legal advisors.
Financial challenges in the crypto market on various fronts caused this move from the Vauld management. However, this is believed to be more of a precautionary move than running out of funds.
Neel, a crypto influencer, feels this move from Vauld could be a precautionary measure to avoid ‘panic withdrawals’.
“This can be a precautionary measure to avoid bigger problems that can happen by panicked withdrawals and give them breathing room to come up with a solution.”
Also, the crypto exchange had recently raised funds from billionaire entrepreneur and venture capitalist Peter Theil.
The current market climate which has led to a significant amount of customer withdrawals of $197.7 million since June 12, Vauld said. In the second week of June, the cryptocurrency market was triggered by a collapse of Terraform Lab’s UST.
Doubts Over Vauld Fund Safety
Meanwhile, voices are growing rapidly around storing crypto assets on exchanges. A Bitcoin trader by name Nebraskangooner on Twitter said keeping money on exchanges only means to lose all of it.
“If all of your money is on Crypto exchanges then you’re already losing.
Johnny, another crypto enthusiast, said it essentially means to disown money if stored on cryptocurrency exchanges.
“Bunch of people keeping their money on exchanges right now are going to turn into a bunch of people getting their money kept by exchanges.”
CryptoGodJohn, another crypto trader, shared a personal experience of losing money stored on exchanges. “If you have money on sketchy exchanges, please do yourself a favor and take your money off the exchange. Happened to me with Cryptoia in 2018,” he shared.