Algorand Foundation

The Algorand Foundation disclosed a $35 million USDC exposure to the troubled Singaporean cryptocurrency lender Hodlnaut. Due to market volatility, Hodlnaut stopped accepting deposits, withdrawals, and token swaps last month.

Algorand Foundation Enhances the Network

Algorand is a blockchain platform for institutional use that includes smart contract functionality. The Algorand Foundation is a local non-profit organization dedicated to preserving the Algorand ecosystem. The foundation’s mission is to strengthen the ecosystem of the Algorand blockchain cryptocurrency protocol. Algorand Network recently completed an upgrade that significantly increased network capacity, and the network now has State Proofs because of the update.

According to the official announcement, State Proofs enable cross-chain connections and transfers without using a bridge or validator networks. It has the potential to solve the issues that blockchain technology interoperability is currently experiencing. The network, which claims to be the world’s first carbon-neutral blockchain technology network, is FIFA’s official blockchain technology partner and will power the organization’s planned introduction of non-fungible cryptocurrencies.

The Algorand Foundation ensures decentralized governance and a stable monetary supply. Furthermore, the Algorand blockchain’s thriving open-source ecosystem enables the Algorand blockchain to deliver on its promise to the world.

Algorand Foundation Exposure to Hodlnaut

The Algorand Foundation has discovered a $35 million USDC hole in its balance sheet due to its exposure to the troubled cryptocurrency lending startup Hodlnaut, which has stopped accepting withdrawals since August 8. According to reports, Hodlnaut’s financial situation deteriorated following its $300 million investment in TerraUSD (UST) on the Anchor protocol. As a result, the cryptocurrency lending industry halted all trading and withdrawals, blaming a liquidity problem. 

A few weeks later, the Singapore court ordered the company to be placed under interim judicial administration, a type of creditor protection plan.

According to the Algorand Foundation, most of the investments held on the platform were “locked, short-term deposits” that are no longer available due to Holdnaut’s withdrawal ban. Instead, corporate entities in Singapore are subject to interim judicial administration for debt restructuring to protect and defend assets before taking legal action.

As a result, on August 29, the Singapore High Court appointed the Algorand Foundation’s nominees, Angela Ee and Aaron Loh of EY Corporate Advisors, as Interim Judicial Managers for Hodlnaut to protect the company’s assets until further legal action could be taken.

3 Arrows Capital has Exposed Algorand

Three Arrows Capital (3AC), a failed cryptocurrency hedge fund, also poses a risk to Algorand Foundation. According to court documents, the foundation and the hedge fund engaged in a single OTC transaction, but 3AC violated the lockup agreement. One affected crypto business was the Terra Luna bankruptcy, which forced Hodlnaut to halt withdrawals on August 8.

According to court documents, Hodlnaut lost $189.7 million of his $317 million holding in Terra (LUNA) before the crash. Interim Judicial management is now in place for the company.


Tamadoge - The Play to Earn Dogecoin

Our Rating

  • '10x - 50x Potential' - CNBC Report
  • Deflationary, Low Supply - 2 Billion
  • Listed on OKX, Bitmart, LBank, MEXC, Uniswap
  • Move to Earn, Metaverse Integration on Roadmap
  • NFT Doge Pets - Potential for Mass Adoption