Hodlnaut Review

Last update | 01. July 2022

Earn on average 9.41% interest per year.
Your investment is secured by  cryptoassets.

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Highlights
  • Earn up to 12.73% APY on USDT/USDC
  • Earn up to 7.46% on BTC
  • Loans secured by crypto assets
  • 20%+ monthly growth
Rating
Risk & Return
Usability
Liquidity
Support
FEATURES
Buyback GuaranteeNo
Auto InvestNo
Secondary MarketNo
CashbackNo
RegulatedNo
DIVERSIFICATION
Min. Investment$ 0
Countries1
Loan Originators0
Loan TypeCrypto loan
Loan Period in Months0 - 120
Interest1% - 12.73%
PROS & CONS
  • User-friendly interface
  • No minimum deposit requirement
  • Alternative crypto interest account
  • Crypto loans are only available for institutional investors
  • Only 6 supported assets
  • Deposits aren’t FDIC insured
News
Statistics
Promo
Risk & Return
Due Diligence
Usability
Liquidity
Support
Summary

News

01 Jul 2022  

Hodlnaut might have misinformed users about its revenue-generating activities, including its exposure to Anchor and UST. Navigate to the dedicated Red Flag section to learn more about it.

28 Jun 2022  

Users can now enjoy cheaper and faster blockchain transactions with Hodlnaut’s support for BEP-20 for USDC.

25 Jun 2022  

Hodlnaut will be decreasing the offered yield on cryptocurrencies from the 1st of July 2022.

Statistics

Year founded:

2019

Number of investors:

10.000

Investors' earnings:

Not available

Average portfolio size:

Not available

Total invested:

$ 500M

Loss of investors' money:

Not available

Funds in recovery:

Not available

Hodlnaut Review

Hodlnaut is a Singapore-based crypto lending company offering the opportunity to earn interest on five different cryptocurrencies and stable coins weekly, trade coins, and get crypto loans. In this in-depth review, we’ll be looking at all of the various features of Hodlnaut to see how it compares to other crypto lending platforms and whether it’s a safe and lucrative space to earn passive income.

hodlnaut review

Hodlnaut in Numbers

After launching in 2019, the platform that started with just 100 users has multiplied its user base over ten times in the last year alone and currently has over 10,000 users.

Along with the growing user base, the assets under management are multiplying too, with over $500,000,000 total invested.

As with many other crypto lending platforms, there is not a lot of financial data publicly available, and Hodlnaut does not have a dedicated statistics page.

The company currently employs 38 employees from its Singapore office. Hodlnaut is available for users in most countries worldwide, including the U.S.

Hodlnaut Referral Code

You can get a $30 signup bonus when you deposit $1000 in a single transaction, either as your first deposit or within the first week of your first deposit. To claim this bonus, you have to maintain an account balance of at least $1000 for 31 consecutive days. Use our Hodlnaut referral code w6aJ2UNrK to get your $30 for free.

hodlnaut referral
Ready to get your Hodlnaut referral bonus?

Hodlnaut Requirements

Here are some of the requirements you will need to fulfill to use Hodlnaut's crypto interest account.

  1. Be over 18 years old
  2. Have a valid email address
  3. Complete KYC verification process

Although Hodlnaut is available in most countries worldwide, including the U.S., the platform is not available for residents from the following countries: Iran, North Korea, Sudan, South Sudan, Syria, Cuba, or any other countries that the Sanction Authority specifies.

Hodlnaut’s KYC process is quite rigorous and requires a lot of personal information. While this can irritate a user, it's reassuring that the platform goes to such lengths to ensure users are genuine.

This verification process requires passport verification, a live photo or video, proof of address, and a whole host of other personal information. Identity verification is done over the phone by the legitimate verification service, Jumio.

Ready to earn interest on your crypto?

Risk and Return

Before we go over the individual risk and returns of Hodlnaut, you should be aware that depositing your assets on any crypto lending platform comes with the chance that risks may arise.

Any governmental deposit scheme does not insure deposits, and you should not treat any crypto lending platform account as a savings account.

What Does Hodlnaut Insurance Cover?

Hodlnaut does not have its insurance paid for by the platform. Instead, it allows users to purchase insurance for their assets at an additional cost through its partner, Nexus Mutual.

This custody cover allows users to claim in the event of Hodlnaut being hacked; however, users can only claim on this insurance if over 10% of their assets are lost or in the case that Hodlnaut suspends withdrawals for more than 90 days.

The cost of this insurance is individual for each user and is dependent on the number of assets a user has and the length of time they want protection from the cover. The cover is only payable by ETH or DAI.

How Does Hodlnaut Make Money?

Hodlnaut makes a profit by lending your crypto to institutions within the financial sector and charging them interest on it.

The interest rates are calculated based on the supply and demand of the tokens and consider the market rates.

Users' crypto assets are also lent to decentralized protocols. To turn a profit, Hodlnaut keeps part of the interest charged in both cases and passes the rest on to the users.

You should be aware that Hodlnaut does engage in rehypothecation, which can be risky for users, as once your assets are under their management, the platform can use them for whichever purposes they choose.

Is Hodlnaut Regulated?

Being a Singapore-based lending platform, Hodlnaut operates under Singapore Law and currently has an exemption from holding a license under the Payment Service Act.

The platform has applied for a Major Payment Institution license which falls under the Payment Services Act from the MAS (Monetary Authority of Singapore) and is waiting for it to be approved.

Hodlnaut is a certified Fintech by the Singapore Fintech Association, also recognized by MAS.

It’s worth noting that the MAS has recently rejected over 100 crypto-related license requests.

If Hodlnaut’s request is denied, the platform has plans to keep Hodlnaut running, including the possibility of moving the location of their offices to a different country.

Keep in mind that Hodlnaut has two legal entities, one in Hong Kong and the second one in Singapore.

How Is Hodlnaut Secured?

There are several features in place to ensure the security of users' funds. To prevent hacking, Hodlnaut uses 2FA.

For users’ wallets, funds are stored in multi-signature wallets, which means transfers are not authorized without verification from at least two parties.

BitGo, a leading security company for digital assets, provides wallet protection, and Hodlnaut also allows address allowlisting, which lets users set a list of approved withdrawal addresses.

Once set up, you can only make withdrawals to the allowed addresses. The platform’s primary custodian is Fireblocks which protects your assets by ensuring that your deposits are spread out over offline cold storage wallets and online hot wallets. That way, the total amount of assets belonging to you is never stored in the same place at the same time.

The platform itself runs on secure Amazon Web Services cloud infrastructure. There are also algorithms in place to protect users' passwords.

Institutions applying for a loan from Hodlnaut need to pass a credit score check and the platforms’ requirements to ensure defaults don’t happen; however, strict contracts approved by Singapore regulations do allow Hodlnaut to recover lost funds ‘by any means necessary.

To lower the risk when it comes to collateral, Hodlnaut ensures there would be enough collateral to repurchase lost funds in the event of liquidation by offering a loan-to-value ratio of between 25-70%.

However, if a default happens, you will be repaid from Hodlnaut’s equity funds, and the platform will accept the loss.

Your Return On Hodlnaut

Currently, you can earn interest on six different crypto assets listed below. Hodlnaut works on a tiered interest system.

The tiers mean that the interest rates vary based on how much of a particular asset you deposit.

For example, with BTC, for the first 2 BTC, users can expect rates of 7.46% APY, 4.08% on the next 8 BTC, 2.02% on the following 90 BTC, etc. Users can earn up to 12.73% APY, with the highest interest rates available for USDT and USDC.

hodlnaut interest rates

Is Hodlnaut Safe?

The location and team behind a platform give a lot of insight into the trustworthiness of a company, so it is worth finding out as much as you can about the founder and other leading team members and the regulations of the country where the platform operates from.

Who leads the team?

Juntao Zhu and Simon Lee co-founded Hodlnaut in 2019.

Juntao is also the CEO of the platform, while Simon is the CTO. Hodlnaut isn’t the first company that the two have co-founded together.

The pair also co-founded the tech consulting firm, Cypherol and were both involved in the capital firm Antler, as entrepreneurs in residence.

It is through Antler that they secured the funding to start Hodlnaut. The team has increased exponentially over the past 12 months as the platform goes from strength to strength, increasing from 10 employees to 38 employees.

The team is also still expanding, as we’ve seen on their LinkedIn page that the company is currently recruiting.

Where is Hodlnaut based?

Hodlnaut operates from Singapore. Since China tightened its’ restrictions on crypto-based activity, Singapore has become a popular place for fintech startups due to its’ government support campaign, which is set to invest $225 million over five years into fintech development.

As well as this, the Monetary Authority of Singapore provides a regulatory sandbox for fintech companies to experiment with products and services within a well-defined period. Singapore is home to over 400 fintech startups.

Are there any suspicious terms and conditions?

Terms of use

Hodlnaut can update the terms of service without alerting users, which is not in your best interest.

hodlnaut review
Withdrawals

Suppose Hodlnaut were to be the victim of a cyber attack, experience extreme market conditions, or other operational or technical difficulties which halt deposits and withdrawals. In that case, Hodlnaut isn’t responsible for any losses to the user because of this.

hodlnaut review
Taxes

Remember that earnings from crypto interest accounts are not exempt from paying tax. You must declare all of your profits to your appropriate tax enforcing body.

hodlnaut review
Use of users’ assets

Once you have deposited your assets, Hodlnaut can distribute them however they choose. You can also lose your rights regarding your assets once Hodlnaut has them.

hodlnaut review

Potential red flags

  • Hodlnaut may change the terms and conditions without prior notice.
  • According to this case study, Hodlnaut isn't honest about its yield-generating activities, including the in-kind reward system as well as its exposure to Anchor protocol.

What's Our Opinion Of Hodlnaut?

Hodlnaut is impossible to ignore due to its impressive growth. It currently has a month-on-month increase of over 20%, which doesn’t appear to be slowing down any time soon.

While the lack of financial data is frustrating for users wanting to do their due diligence, it is a common trait of crypto lending platforms to be less transparent than P2P lending platforms.

Quite the opposite, Hodlnaut appears to have kept its users extremely happy with high-interest rates, quick withdrawals, and an easy-to-use platform.

The company has recently launched an iOS app, and an android version is currently in the works.

Its application to become regulated further increases trust in the platform, and there are lots of features in place to protect your funds should a problem arise.

The website also publishes many articles about the safety of crypto lending and issues surrounding digital assets, which again develops trust.

It is disappointing that Hodlnaut offers such few assets to earn a yield on; however, the rates offered on those assets are reasonable.

Beware, however, that Hodlnaut is earning yield by deploying your assets on various DeFi protocols, which increases the risks of your deposits. Hodlnaut is using various trading strategies which aren't disclosed on their website.

Judging by Hodlnaut's decision to list UST in April, the platform is following rather opportunistic risk management which increases your risk of losing your deposits on the platform.

Usability

There are six supported assets currently available on Hodlnaut, which you can see below.

Earn interest on BTC, DAI, ETH, USCD, USDT, WBTC

Hodlnaut also offers crypto loans, although these are only available for institutional investors rather than individuals.

These institutional investors can use the crypto loans for their business needs or to diversify their crypto portfolios.

For those financial institutions that qualify, the minimum borrowing amount is $50,000.

The user can choose whether they want an open term loan agreement or a 3+ month fixed term agreement.

The loan-to-value ratio varies significantly, starting at 25% and can go up as high as 100%. There are no hidden fees, and Hodlnaut offers the lowest market rates.

Exchange & Swaps

Hodlnaut has the option for users to swap tokens on the platform.

Hodlnaut has also recently introduced the “Market Order Execution” feature. The function of this feature is to increase the success rate of token swaps, especially in cases where the market is volatile.

It enables users to guarantee a swap but doesn’t guarantee a price, so it is on the user to monitor the market and choose to trade when the price is just right.

When the user has decided the time is right to trade, the Market Order Execution feature will secure the market’s best price available at that time.

This new function was introduced to reduce the amount of failed orders that users were experiencing on the platform when trying to swap tokens.

You can withdraw your funds at any time, and Hodlnaut claims to process withdrawals almost instantly; however, the team advises it can take longer (up to 7 days), depending on the size of your withdrawal.

You will need to enable 2FA to withdraw your funds. The maximum withdrawal limit is 100 BTC per day.

The below image shows the withdrawal fees for each supported asset.

hodlnaut review

Support

Hodlnaut does have a live chat option available; however, it is not available round the clock.

Aside from this, users can raise a ticket from within their account, and Hodlnaut will solve it within 24 hours, or there is an email address available to contact, info@hodlnaut.com. Hodlnaut support operates from 10 am-7 pm Monday-Friday GMT +8.

 

Hodlnaut Review Summary

Hodlnaut is an up-and-coming player in the crypto lending space. This fintech start-up has established a successful business model very quickly.

There are many security features to protect users’ funds, and the rates offered are competitive.

Hodlnaut is becoming regulated, which increases trust in the platform. Month-on-month growth of 20% shows that Hodlnaut will soon be a significant competitor of the biggest crypto lending platforms.

Key takeaways from our Hodlnaut review:

  • Loans are backed by collateral
  • Competitive interest rates
  • No useless utility token

If you are looking for an alternative crypto interest account from a platform that isn't following any known shady practices, Hodlnaut might be a suitable option.

FAQs

How does Hodlnaut work?

Hodlnaut is a fintech company that allows users to earn interest on and swap cryptocurrencies. Institutional investors can also get crypto loans.

How safe is Hodlnaut?

All crypto platforms come with a risk; however, Hodlnaut employs several features to ensure the safety of your funds, including 2FA, multi-signature wallets, and address whitelisting. Moreover, users seem satisfied with Hodlnaut, with Trustpilot users scoring the platform 4.8/5.

Where is Hodlnaut located?

Hodlnaut is based in Hong Kong and Singapore.

Company Information

Company:

Hodlnaut Trading Limited

Address:

Unit 305-7, 3/F., Laford Centre, 838 Lai Chi Kok Road, Cheung Sha Wan, Kowloon, Hong Kong

Phone:

Email:

info@hodlnaut.com

Live Chat:

No

Opening Hours:

Mo-Fr 10AM - 7PM (GMT+8)

Social Media: