Crypto exchange Vauld is also one of the troubled platforms that have paused withdrawals for users. Despite being backed by big names and endorsed by many famous, influential people, it is in a very dire state. So, Vauld seeks temporary protection against its creditors to get back on track. They just need some time to work on their business and shape it to withstand the impact of falling crypto prices.
Vauld seeks temporary protection against creditors
Vauld hasn’t filed for a Chapter 11 bankruptcy like many companies are doing in the United States. This means that they are not going to be shut down completely. They want some time to get back on their feet for the benefit of all stakeholders. I am not sure in what light I shall see this, but it is good that the platform isn’t running away from its responsibilities just by filing for bankruptcy.
They have also faced the impact of the bear market after nearly $200 million was withdrawn from their platform. Vauld had to stop everything on their app, from withdrawals to deposits and trading. They also laid off 30% of their workforce to cut down on costs.
Not your keys, not your coins
This bear market and the collapse of so many platforms have again made it clear that “not your keys, not your coins.” If you are expecting that exchanges are safe to use, just look at the current market. Yes, during a bull market, more or less every exchange looks good from the outside, but the truth comes out during tougher times.
So, it is best to pick a popular platform like Binance for trading and have a hardware wallet to store your coins. If you want to be 100% sure that they won’t be lost to a platform’s bankruptcy or collapse. If you lose your coins altogether, your diamond hands won’t help in the bear market. Some exchanges even have the guts to say that your coins are theirs, as stated in their terms of service.
What are your thoughts as Vauld seeks temporary protection against creditors? And do you think they will be able to rise above the current mess? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Tesla sells 75% of its Bitcoin in Q2 2022: Elon’s true side revealed!
