Babel Finance Goes Down

Let’s take a closer look at Babel deciding to suspend withdrawals.

• Babel finance suspends redemptions and withdrawals as of Friday. This is the case because of the “current situation [and] Babel facing unusual liquidity pressures.” (See the full blog post here)
• Because of the crash in cryptocurrency prices, there is a lack of available assets ready on hand. This is why the decision was made to prevent customers from moving money out of their accounts.
• It is important to note, that less than a month ago, Babel received a $2 billion valuation directly following an $80 million series B fundraising round. These changes can happen in the blink of an eye.
• A rival staking platform – Finblox, also made a similar decision, now restricting withdrawals to $1500 per month.

Babel does not know when withdrawals will be allowed again, citing that they are in close communication with all parties to solve the current issue. This is now becoming the norm with multiple platforms suspending withdrawals because of the current market conditions. This is seemingly a new factor one must now account for when trusting a platform with their money – the ability to withdraw.