Algorand Foundation has announced that it has a $35 million USDC exposure in troubled Singapore-based lender Holdnaut.
According to Algorand Foundation, its $35 million exposure is less than 3% of its assets and surplus to day-to-day requirements. Thus, it is unlikely to be affected or suffer any liquidity issues.
It further explained its reasons for putting funds in Hodlnaut, saying as part of its mission, the foundation “invest a portion of our surplus treasury capital to generate yield for the purpose of Algorand ecosystem development, and these funds were invested for that purpose.”
Most of the investments were short-term locked deposits, it claimed, and the suspension of withdrawals by Holdnaut made those investments inaccessible.
Meanwhile, the foundation claimed it is pursuing all legal means to recover its funds. Part of those efforts led to the appointment of Algorand Foundation nominees as interim judicial managers to “identify, preserve, and protect Hodlnaut’s assets until further court action begins.”
Algorand is Exposed to Three Arrows Capital
Algorand Foundation is also exposed to the bankrupt crypto hedge fund, Three Arrows Capital. According to court filings, the foundation was involved in a one-time OTC trade with the hedge fund, but 3AC violated lockup terms.
Court filings show that Hodlnaut had about $317 million in Terra USD (UST) before the crash and lost $189.7 million. The company is now under Interim Judicial Management.
Algorand Upgrades Network
Algorand Network recently completed an upgrade that increased the network capacity significantly. The upgrade also added State Proofs to the network.
According to its official announcement, State Proofs make cross-chain connections and transfers possible without needing a bridge or validator networks. This could eliminate the current challenges facing blockchain interoperability.
The network, which prides itself as the only carbon-neutral blockchain network, is also the official blockchain partner of FIFA and will power the non-fungible tokens that the football governing body plans to launch.
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Compiled by Metacrunch. Metacrunch is a news complier and aggregator platform which aims to spread awareness and updates on Metaverse, Web 3.0 Technology, Blockchain, Cryptocurrency, NFTs, Airdrops and many more.
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