Hodlnaut Review

Hodlnaut was a platform that allowed customers to earn interest on their cryptocurrency. However, in 2022, it announced that it had to pause deposits and withdrawals, and then later announced it was in bankruptcy.

Since that time, it has also been announced that there was a police investigation, and all of these actions are happening at the expense of customers - who are still not allowed to withdraw their funds, and may even face a loss of funds.

If you're looking for a cryptocurrency savings account, you can see other options here.

IMPORTANT UPDATE: On August 8, Hodlnaut announced that it was suspending deposits, withdrawals, and swaps due to market conditions. It plans to restructure its company, however, customers with assets at Hodlnaut may NOT get all of their assets back. As a result, we cannot recommend Hodlnaut to readers. Read their announcement here.

Editor's Note: This review has been updated to reflect the most updated information regarding Hodlnaut's bankruptcy. The review below is outdated as customers cannot deposit or withdrawal funds. 

Who Is Hodlnaut?

Hodlnaut is a cryptocurrency lending platform. Its Co-Founder & CEO is Juntao Zhu. Hodlnaut was founded in 2019 and is based in Singapore. It's also part of the Antler portfolio company.

“Traditionally, Bitcoin holders will only be able to profit off-price increments from the asset. At the same time, they’re also looking for ways to improve the return on their assets while waiting for the value to appreciate. That’s why we came up with Hodlnaut," Zhu said in an interview with Antler. "We want to help Bitcoin holders earn interest on their Bitcoin and unlock its full value and the opportunity costs of holding it.'

Holdnaut says that its name is a combination of "HODL" and "Astronaut." Hodl is a slang term that cryptocurrency investors often use for the act of holding on to cryptocurrency rather than selling it. The platform aims to help "hodl-ers" earn consistent income.

What Do They Offer?

Hodlnaut pays interest on cryptocurrency deposits. These deposits are loaned out as margin to cryptocurrency traders. The loans/margin are called cryptocurrency loans. Hodlnaut accepts deposits and pays interest on:

There is no minimum deposit requirement and funds can be withdrawn at any time. Try Holdnaut and get up to $20 free >>>

Interest Rates

The annual compounded interest rates that Hodlnaut pays ranges from 1.0% - 13.86%. Here are the current rates for each of the platform's supported coins:

The amount of interest earned depends on a coin’s previous month’s performance and demand. Interest is earned daily and is credited to user accounts every Monday.

Institutional Loans

Hodlnaut offers digital asset loans to institutional clients. Borrowing amounts start at $50,000. Hodlnaut is the counter-party for Institutional Loans. Terms are open or at least three months. Loan-to-value ratios are typically 70% or lower.

Token Swap

You can also swap tokens with Hodlnaut. All of the assets that are supported on the platform can be traded. And its recently-launched "Market Order Execution" instantly fills token swap orders and reduces the number of failed orders during volatile periods.

Customer Service

The only way to contact Hodlnaut is through email at support@hodlnaut.com or through live chat on their website. If you live in the US, you may also have to wait a bit for a response as Holdnaut's business hours are Singapore Time, Mon - Fri 10:00 AM - 7:00 PM.

Are There Any Fees?

There are no fees on deposits. However, Hodlnaut does charge withdrawal fees which vary based on the type of currency you withdraw. As of writing, these fees are:

How Do I Open An Account?

You can visit the Hodlnaut website to open an account. Like other cryptocurrency exchanges, users must complete KYC (know your customer) verification to access all account features. Readers for The College Investor can also get up to $20 free when opening a new account with Holdnaut and depositing at least $1,000.

Is My Money Safe?

Hodlnaut is a Singaporean fintech company and follows Singapore’s financial regulations. In the U.S., deposit accounts come with FDIC protection. There is no such protection offered with Hodlnaut deposits (or SIPC protection either). But remember, no cryptocurrency accounts offer this either. 

When it comes to platform security risk, Holdnaut runs on AWS and all traffic is SSL-encrypted. Further, all cryptocurrencies that are held in custody with Hodlnaut are transferred to self-custodied cold wallets or lent to borrowers. It uses no hot wallets whatsoever. They also have a whitelisting feature to ensure that withdrawals only occur to approved addresses.

To mitigate their hacking risk, users can purchase additional insurance with Nexus Mutual. Unfortunately, Holdnaut does not pay for this insurance coverage itself. If you decide to purchase insurance through Nexus Mutual’s Hodlnaut Custody Cover smart contract, the coverage maximum is $6.7 million and the premium is 2.6%.

Is It Worth It?

Earning interest with Hodlnaut is riskier than earning interest in an FDIC-insured deposit account. But for that additional risk, Hodlnaut pays far more. As the company is based in Singapore, U.S. residents will need to be ok with stepping outside of the protections provided by U.S. financial institutions.

Assuming no problems, long-term cryptocurrency investors can do well with Hodlnaut. But if you're not sure that it's right for you, know that there are several alternatives to choose from. Compare crypto savings accounts here >>>

Hodlnaut Features