Babel Finance Suspends Redemptions And Withdrawal

According to a report, cryptocurrency digital service company Babel Finance has paused the redemption and withdrawal option. This is only a few days after Celsius took similar action for liquidity pressure. 

The Hong Kong-based cryptocurrency lender cited the ongoing crypto market unrest as the reason for the suspension.

However, the digital service provider noted that it would soon communicate the resumption of services. It also implored investors to be patient with the company.

Babel Finance Follows The Same Route As Celsius

On the 13th of June, the Celsius platform had suspended most of its services. Services such as swaps, transfers, and withdrawals were unavailable. According to the firm, it took such a route due to the extreme market crisis.

However, Babel Finance has followed the same route. Currently, the firm limits its operation to Bitcoin, Ethereum, and stablecoins. Also, it had reduced its clients to about 500.

Meanwhile, the platform has not revealed further steps or actions to navigate the crisis. On the other hand, Celsius has taken some measures. 

According to reports, Celsius has fired Citigroup to act as an advisory. Major whales in the company continue to sell off their holdings due to the ongoing decline. Celsius has over 1.7 million customers.

Amber Group Unmoved By Crypto Market Crisis 

In recent months, the crypto market valuation has dropped tremendously. It has fallen from over $1.3 trillion to about $937 billion in one week.

One of the most affected digital currencies is the flagship coin, Bitcoin. BTC has lost more than 34% in the past week. As of the time of writing, the currency has dipped below the $20k support. 

Another famous digital asset firm, Amber Group, commented on the recent decline. According to their blog post, the company is unperturbed by the cryptocurrency market crisis. 

Also, the firm believes this is “business as usual” and is ready to sail through. Amber stated that;

“We have never done any business that includes underwriting borrowers’ credit risk. Also, we have no intentions to do so anytime soon.”

Furthermore, Amber Group said it did not expose itself to any market players with likely “solvency issues.” As a result, all its products and services would continue to function correctly. 

Users can withdraw on the platform without any glitches. Also, services like dual-currency products, earnings, and deposits are still available.

Celsius and Babel are not the only digital asset providers that paused withdrawals services. Binance also suspended its withdrawal activities when Bitcoin dipped. However, the service is back and running.