Source : coinquora.com
- CZ warns users to stay cautious.
- The platform has halted all withdrawals, deposits, and trading.
- Vauld cited harsh market conditions for the decision.
Unpopular opinion: careful when using platforms that require VC funding, they often don’t have a real business model yet.
(over generalization, there are exceptions of course)https://t.co/lI1pvdPdKr
— CZ 🔶 Binance (@cz_binance) July 4, 2022
Zhao warned users to stay cautious of platforms they use. He highlighted users to be especially careful of the platforms that need venture capital funding for running the firm. Although not all, Zhao clarified that most of these firms don’t have a real business model.
Notably, crypto trading platform Vauld has halted all activities on its platform, citing harsh market conditions. Zhao asked the users to stay cautious after sharing the news about Vauld. The CEO of Binance also engaged with different firms that are currently struggling and are trying to bail out projects that are worth saving.
The platform released a corporate statement on Monday to notify its users that it is halting its withdrawals, trading, and deposits. Vauld has been providing services for over three years and is backed by firms like Pantera Capital, Coinbase Ventures, and several others.
Vauld cited that it is facing challenges financially during the harsh market conditions. The platform added that the current market conditions have caused several users to withdraw excess funds of around $197.7 million since June 12. This action was followed by a panic among investors following the collapse of Terra and Celsius, halting its withdrawals.
Darshan Bathija, the founder and CEO of Vauld, said the company is looking at restructuring possibilities. On June 16, the platform announced a statement in which it claimed that despite the volatile market conditions, the platform is operating as usual.
Over the last few days, all withdrawals were processed as usual, and this will continue to be the case in the future.
The decision to halt activities on the platform was followed by this promise that Vauld failed to keep up.