Asia -based crypto financial services provider Babel Finance announced on its website earlier today that production and several other operations will be temporarily halted. The company cited "extraordinary liquidity pressure" as what prompted them to make the decision.
Every day more and more bad sentiments are happening in the kritpo market especially in this turmoil. The crisis has forced some crypto financial organizations to face the challenge of maintaining operations. The latest is about the scandal that befell the hedge fund ‘Three Arrows’.
There may be another crisis that may occur as another company that provides loan and savings services Babel Finance has just stopped production for a while.
Based on a statement on their website, the decision was taken following huge market uncertainty, following the same reason the move was taken by the Celsius network which also stopped production. These fluctuations have seen industrial giants start to fall.
According to Babel Finance, ‘we are in close contact with all relevant parties on the actions we are taking to best protect our customers”.
Nearly a month ago, after the Terra-LUNA crisis, co-founder and CEO of Babel Finance Del Wang had insisted that they had no connection between Babel and Terra.
The recent collapse of Luna and UST stablecoin “had no impact” on Babel’s business because the firm “had no exposure” to tokens and they in turn limited their business only to certain bitcoin, ethereum and stablecoin.
The company claims that it has over $ 3 billion in outstanding loan balances and an average monthly trading volume of $ 800 million in derivatives by the end of 2021.
Meanwhile, rival crypto financial services provider Finblox, on Thursday, made a similar announcement, limiting withdrawals to $ 1,500 per month because of its link with Three Arrows Capital.
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