Struggling cryptocurrency lender Hodlnaut warned of risks to its assets if a looming upgrade of the Ethereum blockchain known as the Merge stokes a bout of volatility in virtual coins.
Sharp moves in the prices of tokens linked to the Ethereum network could cause “smart contracts to automatically liquidate the assets,” the company said in a statement released on its blog on Monday.
Smart contracts are programs that automatically execute when certain conditions are met and are popular in blockchain-based decentralized finance applications, where Ethereum is the dominant network.
Big price swings after the Merge could spark liquidations as such rules are triggered, for instance in protocols governing collateral, according to Hodlnaut.
Hodlnaut is under judicial management in Singapore after halting withdrawals. The firm, which also operates out of Hong Kong, is among a number that buckled around the world during this year’s meltdown in crypto markets.
The hotly-anticipated Merge,...
Your content is great. However, if any of the content contained herein violates any rights of yours, including those of copyright, please contact us immediately by e-mail at media[@]kissrpr.com.
INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...