After crypto financial services provider Babel Finance halted withdrawals and redemptions amid a market meltdown on Friday, the platform has now taken steps to ease near-term liquidity pressure.
In a recent to remark, the platform noted that an “emergency assessment” of the company’s liquidity status has been completed. He also said, “We have communicated with key counterparties and affected customers and reached preliminary agreements on the repayment period for certain debts, which has eased the short-term liquidity pressure on the business.”
In addition, Babel Finance explained that it was seeking liquidity support from shareholders and potential investors amid the crisis.
We can recall that last week, the Hong Kong-based crypto lender said that due to “the state of the current crypto market, its fluctuations and the conductive risk factors faced by some institutions”, Babel Finance is facing “unusual” liquidity pressures. .
That said, the company has now emphasized that it “will continue to communicate closely with customers, counterparties and other partners, and provide updates in a timely and transparent manner.”
Babel Finance is not alone in the liquidity pressure
The liquidity pressure had followed a major crypto slide that led platforms like Babel Finance, Binance, Celsius, Finblox and Three Arrows Capital Ltd., among others, to suspend or limit withdrawals.
With that, Celsius reiterated that stabilizing its cash and operations “will take time.” This Noted in a recent blog post, “We plan to continue to work with regulators and officials regarding this pause and our company’s determination to find a solution.” Meanwhile, Celsius has reportedly hired Citigroup as an “advisor” as it continues to plunge this month.
In the meantime, the cumulative crypto market now totaled almost $950 billion as part of the currently volatile crypto market.
FTX extends credit line
FTX Trading Ltd. would provide lines of credit in an attempt to stem the fall of the industry. Yesterday, crypto exchange BlockFi announced that it had secured a $250 million revolving line of credit from FTX.
Meanwhile, FTX CEO Sam Bankman-Fried believes that the US Federal Reserve’s decision to aggressively raise interest rates was the main reason for the stock market crash.
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