Скачать или смотреть What Happened With VAULD? Why people are blaming finance influencers?

Well long story short, whoever invested into Crypto using Vauld as their exchange platform has their money locked/stuck in that platform. 🔐

Investors can't withdraw the money as the company has stopped all sorts of transactions and trading. 🪤 ❌

Well this was the short version, now coming to the long version; 📑

What does Vauld do?
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Vauld is a Cryptocurrency exchange platform which was based in Singapore, Vauld was a unique platform which encouraged it's Investors and traders get into long term investing by providing them with SIP options on Crypto. 👀

They even promised a yield upto 12.68% to Vauld's users who had Crypto holdings. It all seems jolly to an average investor, the narrative of Crypto being a volatile and risky asset was out of the window. 🪟💨

The Story of Vauld.
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About a year ago Vauld raised 10 Million Dollars and these funds helped the company to increase their AUM (Assets Under Management) size by 10 times and their user base grew over 40 times. 😮

This was also because of their brilliant marketing, Vauld were able to rope in well known financial influencers (also called as finfluencers) who had massive viewership on their social media handles, (We'll not take the names, you tell us 😉)

When these financial influencers termed these crypto FDs to be safe and said there's a sure shot way of earning upto 12% interest without any risk, the investors flocked towards Vauld and started investing in Crypto. 💰🏃

This marketing campaign was so damn successful that Vauld's 20% of AUM was attributed to the Indian Crypto investors. 📊

The Indian Crypto traders had a trading volume of 10 Million Dollars on a daily basis. 🤑

Now the problem with Vauld was that it charged no brokerage to its customers, now most of the Crypto exchanges earn money from these brokerage charges, 💸

So how were Vauld earning money if they charged no brokerage?
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They functioned exactly like a bank, Vauld used to earn money by lending crypto to the projects within the crypto ecosystem, these projects used to pay back the loan gradually along with the interest and the principal amount. 🏦🪙

The Downfall.
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When the Crypto market started to crash and underperform, the investors started to panic and they began pulling out of their Crypto investments, 😱

Now the problem was Vauld used to loan out the investors' crypto to other projects, but the investors' crypto existed digitally, (exactly like a bank) 🧐

So when investors started pulling out Crypto massively, Vauld had no real Crypto to cash out because they had loaned it. 🙃

The investors were pulling out money at such a rapid pace that Vauld had to lay off 30% of their employees just to meet the financial needs. 📤

But this couldn't stop the downfall, because of stringent tax laws on Crypto, people were still continuing to pull out funds, Vauld was bleeding. 🔪

Vauld was bleeding so bad that investors had made withdrawals worth 195 Million Dollars in just 25 days. 😰

Vauld had no choice, Vauld had to survive by any means and hence they eventually stopped transactions and trading. This left the investors' money locked in the platform itself. 🔐😟

So What Now?
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Well on the bright side Vauld has not run away, they are still there and trying to figure out a way out of all this. 🚠

Vauld is trying to raise more funding and onboard new VC Investors.