More crypto turmoil

[SlugSlinger]

Crypto Tumult Spreads as Lender Babel Puts Freeze on Withdrawals​

Move is in response to ‘unusual liquidity pressures’ Babel news follows Celsius, Three Arrows in sign of distress​

Muyao ShenJune 17, 2022, 11:22 AM CDT
June 17, 2022, 7:31 AM CDT
From
In a sign of deepening turmoil in the crypto community, Babel Finance became the second major digital-asset lender this week to freeze withdrawals, telling clients it is facing “unusual liquidity pressures” as it contends with recent market declines.
“The crypto market has seen major fluctuations, and some institutions in the industry have experienced conductive risk events,” the Asia-based lender and asset manager said in a notice on its website to explain the temporary measure. A spokesperson at Babel told Bloomberg that the team has faced “some pressure” and “are working on it.”

Down from $65k

 

[SlugSlinger]

 

[cowadle]

please explain freeze on withdrawls? does that mean they won't let you have your currency?

 

[SlugSlinger]

please explain freeze on withdrawls? does that mean they won't let you have your currency?

These companies loaned out the dollars people used to deposit into their crypto accounts mostly to buy cryptos like Bitcoin.

Mostly due to human nature and emotion, cryptos are dropping and people want to sell. You know those who buy high and sell low.

These companies do not have the cash reserves to fund the crypto account holders that are selling and want to withdraw money from their account because the company loaned these funds out to other borrowers under contracted terms. The people who took out these loans do not have to repay just because the lender ask them to.

It’s just like a run on a bank when the bank has ran out of cash.

 

[FrankNmac]

From the movie "The Big Short" this scene shows the immediate reaction from customers when you tell them you are freezing withdrawals from a fund.

Start at the 1:00 mark to save time.

 

[cowadle]

These companies loaned out the dollars people used to deposit into their crypto accounts mostly to buy cryptos like Bitcoin.

Mostly due to human nature and emotion, cryptos are dropping and people want to sell. You know those who buy high and sell low.

These companies do not have the cash reserves to fund the crypto account holders that are selling and want to withdraw money from their account because the company loaned these funds out to other borrowers under contracted terms. The people who took out these loans do not have to repay just because the lender ask them to.

It’s just like a run on a bank when the bank has ran out of cash.

thats what i thought. no fdic

 

[SlugSlinger]

thats what i thought. no fdic

Nope, and I don’t think there is any kind of regulation on those types of companies. I think that company in the article is a Chinese company.

 

[dennishoddy]

I bought a couple hundred bucks of Doge on a whim. It never went anywhere, so if I lose it, no big deal. Thats my only experience with crypto.
Friends went in big awhile back to the tune of a quarter million in bitcoin. They were sure bragging it up how much money they were making.
Looking at the current pricing, I'm betting they are down around 100K.

 

[LennyDw]

These companies loaned out the dollars people used to deposit into their crypto accounts mostly to buy cryptos like Bitcoin.

Mostly due to human nature and emotion, cryptos are dropping and people want to sell. You know those who buy high and sell low.

These companies do not have the cash reserves to fund the crypto account holders that are selling and want to withdraw money from their account because the company loaned these funds out to other borrowers under contracted terms. The people who took out these loans do not have to repay just because the lender ask them to.

It’s just like a run on a bank when the bank has ran out of cash.

That's why I despise exchanges and believe in holding your own crypto in a cold wallet. This doesn't affect those that help their own crypto.

 

[ttown]

If I was buying crypto it wouldn’t be Bitcoin or Eth JMO

I dont follow the various coins usually. I’m been reading about XRP. After researching this could be my next DWAC.

Researching I hit this summary that okay @ .30 cents this could be a home run and @$300 per 1000 coins affordable.

The issue with bitcoins and such is the transaction network they run on is WAY to slow, CC do millions of transactions per minute, to complete with the SWIFT system You have a need for speed.

Ripple was design to replace SWIFT (see article), the coin is neutral meaning the fed coin they’re talking about or another coin coming out of the East would use this to settle transactions rapidly.

Of course I could be wrong, this is only food for thought.

https://www.forbes.com/advisor/investing/cryptocurrency/what-is-ripple-xrp/