Babel Finance is working on reducing unusual liquidity pressure
Babel Finance is working on reducing unusual liquidity pressure
- Babel Finance promised to continue to receive liquidity support to protect investors
- The company collected $ 80 million in the past month with an assessment of $ 2 billion
Babel Finance has made preliminary agreements with opponents and customers who deal with the repayment duration of some debts to reduce the company's liquidity pressure at short notice.
The update that was shared on Monday on the website of the crypto loan, follows Babel Finance-as well as other crypto companies like Celsius and Three Arrows Capital-that have disclosed liquidity problems in the past few days because the crypto prices have fallen.
The price of Bitcoin was on Monday morning at 10:30 a.m. ET at $ 8:640 p.m., according to the data compiled by block works - an increase of about 6 % in the last 24 hours, but a decrease of about 23 % compared to a week ago.
babel finance on Friday that returns and withdrawal from its products are temporarily suspended due to "unusual liquidity pressure".
The company stated in its explanation on Monday that it carried out an emergency assessment of its business and tried to meet its legal responsibility towards customers by continuing to "avoid further transfer and distribution of liquidity risks".
"We have actively communicated with shareholders and potential investors and will continue to communicate and receive liquidity support," says the explanation.
"In view of the current context of strong market volatility, Babel Finance will continue to communicate closely with customers, counter -parties and other partners and provide promptly and transparent updates."
Babel Finance did not immediately answer a request for further comments.
The main business areas of the crypto finance service provider founded in 2018 are lending and trade-it focuses on Bitcoin, Ether and StableCoins.
Babel Finance collected $ 80 million last month with an assessment of $ 2 billion. The main investors of the round included Jeneration Capital and 10T Holdings as well as the existing shareholders Dragonfly Capital and Bai Capital.
The company, which currently has around 500 customers, collected $ 40 million in May 2021.
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The contribution "Babel Finance Working to Ease 'Unusual Liquidity Pressures" is not a financial advice.