This altcoin project could no longer withstand the crypto winter and hack attacks. Thus, it took its place among many projects that went bankrupt due to similar problems. Accordingly, the popular DeFi altcoin Babylon Finance has decided to shut down. Then, it announced some important dates for its investors. Within 24 hours of the announcement, the price of the token increased by 1000%.
This DeFi altcoin went bankrupt due to bear market and hacking attacks
Ethereum-based DeFi asset management protocol Babylon Finance is rolling out. Ramon Recuero, the founder of the altcoin project, shocked the community by announcing that the services will be shut down on November 15, 2022. According to Recuero’s announcement, the project has not recovered from the effects of the Rari hack and bear markets. As a result, it had to decide to close despite all efforts. Babylon Finance shared the following in its farewell announcement:
“Despite our efforts, we were unable to reverse the negative momentum caused by the Rari/FEI hack.”
The protocol was in a better position before the Rari/FEI hack. Because he had established the 10 largest loan pools in Rari and reached a total value of 30 million dollars. The Rari/FEI attack caused investment pools to lose $3.4 million. As a result, its customers withdrew 75% of their TVL, or approximately $14 million, within two days. BABL token price dropped from $20 to $5 due to the hack. eliminated any chance of raising more money through token sales.
Treasury assets will be collected and distributed to investors
The DeFi altcoin project was already going through a difficult period due to the bear market. Then the Rari hack attack and several internal crises hit the project. Finally, the Fuse hack put an end to the story of the project. In the announcement, the team announced that it will bring together all Treasury assets. Accordingly, from September 6th, they will distribute the treasure among BABL and hBABL token holders.
In addition, Babylon Finance users should withdraw their money before November 15, when the website will be shut down. To avoid draining liquidity during the liquidation process, Babylon removed all existing liquidity from the Uniswap v3 pool. In addition, Babylon underlined in its announcement that the project is open source and that users can make a fork or clone.
Altcoin price made 10x after crash
After the closing announcement, the BABL token price has dropped almost 90% in the last 24 hours. The value of the altcoin asset was trading around $5 last week. cryptocoin.com As we reported, after the announcement, the BABL price dropped to $ 0.402313. However, an interesting development occurred afterwards. The price of the project, which announced that it was shuttered, returned to its former levels after its collapse. At the time of writing, BABL was changing hands at $5.08, up over 1000% in the last 24 hours.
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