A look at what went wrong with Vauld

economictimes.indiatimes.com:

Vauld, a crypto lending platform, has halted its operations. Due to this investors are not able to make deposits, withdraw or trade. However, this is not the endgame for the company, as of now. “This is due to a combination of circumstances such as the volatile market conditions, the financial difficulties of our key business partners inevitably affecting us, and the current market climate,” said chief executive officer (CEO) Darshan Bathija in a statement on the company’s website. There are a number of questions among investors, like: What went wrong with Vauld? What can investors do now? Is it the end of the road for investors? Let us try to find the answers for all the questions.

Did you Know?

In the wake of the crypto market crash, the prices of hardware used to support the mining of crypto assets are also falling dramatically. For example, a high-end graphic card is now almost 45% cheaper compared to its price a few months ago.

What happened? Incorporated in 2018, Vauld is a crypto lending platform, which encourages long-term investing by offering SIP options and higher interest on crypto holdings to its users. More than 275 coins are listed on its platform. In July 2021, the company received a funding of $25 million Series A from companies like Valar Ventures, Pantera Capital, CMT Digital, Gumi Cryptos, Coinbase Ventures, Robert Leshner, Cadenza Capital, and others. It used these funds to grow its asset under management (AUM) by 10x and user base by 40x. The company also expanded its team to 200 members from 40 earlier. Majority of the Vauld users were Indian, who accounted for 20 per cent of the AUM & contributed $10-15 million daily volume on the platform. However, the company claimed