CZ advises users to use caution. All trades, deposits, and withdrawals have been suspended on the site. Vauld attributed the choice to challenging market conditions.
Many seasoned cryptocurrency experts have lately warned that many DeFi sites are at risk of imploding, including Binance CEO Changpeng Zhao.
Zhao advised people to exercise caution when using any platform. He emphasized the necessity for customers to exercise extra caution while using platforms that depend on venture capital investment to operate the business. Zhao stressed that the majority of these companies lack a true business plan, albeit not all.
Market Remains Unstable
Notably, the cryptocurrency trading site Vauld has stopped all operations, citing difficult market conditions. Zhao urged the users to exercise caution after spreading the Vauld news. The CEO of Binance has communicated with several failing businesses to save worthwhile ventures.
The site informed its users via a corporate statement on Monday that it is stopping withdrawals, trading, and deposits. With the support of organizations like Pantera Capital, Coinbase (NASDAQ: COIN) Ventures, and many others, Vauld has been offering services for more than three years.
Vauld stated that due to the challenging market conditions, it is experiencing financial difficulties. The site noted that since June 12, some customers have taken out excess cash totaling about $197.7 million as a result of the present market circumstances. Following this course of action, investors began to fear when Terra and Celsius failed, which caused withdrawals to stop.
Vauld’s founder and CEO, Darshan Bathija, stated that the business is exploring restructuring options. On June 16, the platform released a statement in which it asserted that it is continuing to run normally despite the erratic market circumstances. All withdrawals were handled as normal during the past three days, and it will be that way going forward. This commitment came after the decision to stop platform activity, but Vauld broke it.