As the management of Vauld is trying to figure out a solution to the ongoing crisis, several users are anxious. The individual investors are doubtful as to what it could mean to them in future.
Vauld User Funds: What Is The Priority
Meanwhile, it appears that user funds could be prioritized above venture capitalists, if the company goes for liquidation process. When the company’s audit begins by calculating assets and liabilities, Vauld could then start to return the liabilities.
On Mondy, Vauld said in an announcement that it is facing financial challenges owing to the volatility in the market. This is due to a combination of circumstances such as the volatile market conditions and the financial difficulties of our key business partners. Also, the current market climate led to a significant amount of customer withdrawals, it stated.
The withdrawals amounted to excess of $197.7 million since 12 June 2022 when the decline of the cryptocurrency market was triggered by Terra crash. Following this was further damage due to Celsius network pausing withdrawals, and Three Arrows Capital defaulting on their loans.
What’s Next For Users?
Other factors like India’s high taxation which became effective starting this month have also caused more damage to Vauld’s prospects recently. Other Indian exchanges are also facing the heat amid concerns of Vauld user funds. Already, trading volumes in the country’s exchanges have come down drastically.
