Summary:
Ethereum’s pending transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) can trigger new risks for the troubled crypto lender – Hodlnaut. The Singapore-based company was one of several firms in the crypto industry that succumbed to the pressures of the downturn after the collapse of Terra ecosystem tokens. According to a new report, Hodlnaut has warned of risks to its assets if the Merge fuels a “bout of volatility in virtual coins.” As such, sudden price movements in the price of the Ethereum-based tokens could prompt “smart contracts to automatically liquidate the assets,” said the distressed company in the blog post. One way to alleviate risks, according to Hodlnaut, is to unwind tokens deployed on decentralized finance (DeFi) platforms. However, this move could
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Chayanika Deka considers the following as important: AA News, ETHBTC, ethusd, social
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Ethereum’s pending transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) can trigger new risks for the troubled crypto lender – Hodlnaut. The Singapore-based company was one of several firms in the crypto industry that succumbed to the pressures of the downturn after the collapse of Terra ecosystem tokens. According to a new report, Hodlnaut has warned of risks to its assets if the Merge fuels a “bout of volatility in virtual coins.” As such, sudden price movements in the price of the Ethereum-based tokens could prompt “smart contracts to automatically liquidate the assets,” said the distressed company in the blog post. One way to alleviate risks, according to Hodlnaut, is to unwind tokens deployed on decentralized finance (DeFi) platforms. However, this move could
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Chayanika Deka considers the following as important: AA News, ETHBTC, ethusd, social
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Ethereum’s pending transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) can trigger new risks for the troubled crypto lender – Hodlnaut.
The Singapore-based company was one of several firms in the crypto industry that succumbed to the pressures of the downturn after the collapse of Terra ecosystem tokens.
- According to a new report, Hodlnaut has warned of risks to its assets if the Merge fuels a “bout of volatility in virtual coins.”
- As such, sudden price movements in the price of the Ethereum-based tokens could prompt “smart contracts to automatically liquidate the assets,” said the distressed company in the blog post.
- One way to alleviate risks, according to Hodlnaut, is to unwind tokens deployed on decentralized finance (DeFi) platforms. However, this move could lead to material losses.
- Hodlnaut is currently put under judicial management to protect it from legal proceedings from third parties.
- The court-appointed judicial managers have inquired about the estimated losses from such an unwinding and any preventative steps that can be taken to preserve the value of assets.
- The anticipation surrounding the Ethereum Merge has reached new highs as it gained recognition from the world’s most popular website, which is counting down to the upgrade.
- Tech juggernaut Google has added a countdown leading up to the event, with two bears on either side that should merge into one if the upgrade occurs as planned this week.
- With just days away, several crypto firms are on the lookout for any possible hiccups as the newly upgraded Ethereum network comes to life and anticipates a period of trading frenzy.