Babylon Finance decides to shut down the project
The founder of Babylon Finance confirmed that the team is not able to run the project because of the huge negative impact because of the hack attack on the platform.
Babylon Finance is a community-led crypto asset management decentralized protocol, which allows platform users to invest in Defi together. This platform is built on the Ethereum network and platform helps crypto projects to raise funds for better concepts or business models. Recently the platform faced a hacking attack in which the platform lost around $3.4 million worth of crypto assets and that degraded the interest of crypto investors in the platform badly.
On 31 August, Ramon Recuero, founder of Babylon Finance, took to Twitter to inform the crypto community that the team is shutting down the Babylon Finance platform because the team is not able to compensate the negative impact on the platform, which arose because of the hack attack on the platform.
1/ Babylon Finance is Shutting Down
— Ramon Recuero |
Despite our efforts, we haven’t been able to revert the negative momentum caused by the Rari hack.Market hasn't helped.https://t.co/Qgb5XM33ZX
TLDR below
(@ramonrecuero) August 31, 2022
Babylon’s founder noted that the Rari hack plunged the Total Value Locked (TVL) in the platform from $30 million to $4 million. And also the hack resulted in the out of $10 million lending funds from the platform at once.
According to Ramon, in the current situation, Babl tokens can’t be used in the form of collateral, and the price of Babl tokens is not in great condition, which can help to raise funds.
Further, Ramon said that for the last few months, the team has been working blindly without any salary to get out of this situation. The platform needed $50 million TVL at least to sustain its business but unfortunately, the team couldn’t do it.
In the end, the Babylon Finance founder admitted that they failed to run the business and now the team & founders are not able to get out of this situation, so the team will distribute all the funds to the Babl token holders.
The official website of Babylon Finance will run till 15 November 2022 and the platform’ Strategists and garden managers urged to unwind their positions before that date.
8/ Babylon Website will continue running until November 15th.
— Ramon Recuero |
Strategists and garden managers need to unwind their positions before that date.
Deposits and new garden creation are now disabled in the UI.
Read also: Celsius wants to return funds to some users
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