Source : coingape.comhttps://cdn.coingape.com/wp-content/uploads/2022/07/04153035/CZ-Vauld.jpg
Binance’s CEO Chengpang “CZ” Zhao took to Twitter to take a dig at Vauld, a Singapore-based crypto exchange and lending platform.
Replying to an article about Vauld’s suspension of withdrawals, CZ cautioned against using platforms that require VC funding. He believes that such companies do not have a reliable business model.
CZ’s dig makes a lot of sense since one of the companies backing Vauld is Binance’s competitor, Coinbase. Peter Thiel’s Valar Ventures and Pantera capital are other big names backing Vauld.
Ripple’s CEO David Schwartz also mocked Vauld with a “RIP Vauld” tweet.
Vauld Halts Its Services
Earlier today, Vauld issued a corporate statement disclosing the suspension of all withdrawals, trading, and deposits on their platform, citing market volatility. The platform blamed Terra’s collapse, Celsius’s suspension of withdrawal, and 3AC’s loan default for the decline of the crypto market. It disclosed that close to $200 mln has been withdrawn since the 12th of June, 2022.
The suspension is in stark contrast to the statements made by their CEO, Darshan Bathija, last month. In a blog post, Bathija denied any exposure to Celsius or 3AC and affirmed the company’s ability to be liquid despite the harsh market conditions. Moreover, Nansen.ai CEO, Alex Svanevik, revealed that Vauld’s main account had a lot of transactions with 3AC. Vauld also posted a blog revealing 3AC’s insolvency a month ago.
Svanevik did however point out that the interactions with 3AC happened almost a year ago, and do not necessarily point to exposure.
Exchanges Losing Trust
Vauld is the latest in a series of centralized exchanges that have halted their services. Companies like Three Arrow Capital and Celsius have also suspended services citing the bear market. As a result, many voices are speaking out against exchanges.
Lark Davis, a major crypto investor and influencer, firmly asked his followers to get crypto off centralized exchanges. Dennis Porter, the CEO of Satoshi Act Fund, cautioned against storing any measurable crypto in exchanges, even in popular ones like Coinbase.