The native token of the DeFi protocol, BABL, experienced a new all-time low of $0.23 after the founder declared that the company is ceasing operations.
After months of attempting to regain momentum following the Rari Fuse exploit, Babylon Finance, a decentralized finance (DeFi) protocol, has finally declared that it will shut down.
Despite the efforts of their staff to withstand the domino effect brought on by the attack, the platform witnessed an unstoppable bad streak, according to a statement from its creator Ramon Recuero. The protocol wasted $3.4 million, claims Recuero. The platform’s overall value locked down from $30 million to $4 million as a result. Even worse, the Fuse pool was shut down, eliminating a lending market worth $10 million, according to Recuero.
Their wounds were further worse by the general unfavorable sentiment scenario in the cryptocurrency market. According to the creator of the DeFi protocol, as issues grew, the native cryptocurrency token of Babylon Finance, BABL, likewise dropped in value from $20 to $6, costing the team months of development time.
In addition to these, the founder said that using BABL as collateral for financing choices became impractical. Additionally, due to its low cost, employing tokens as a fundraising tool was not practical. He stated in a tweet:
The founder added that, as a final move by their core team, they will begin distributing all of their treasury holdings to BABL and hBABL holders on September 6. Also stated by the team was that all tokens, vested and unvested, will be returned.
Following the news, the price of BABL fell by 99% and hit a new record-low of $0.23 per token. The token trades at $0.44 at the time of writing.
Attackers seized assets from Rari Capital’s Fuse Platform in May worth about $80 million. DeFi protocol demanded the restoration of the stolen funds at the time and offered the exploiters a $10 million bounty.