According to a report, Bancor has started feeling the hot hands of the current crypto market bloodbath. Consequently, the decentralized exchange has decided to halt its impermanent loss (IL) protection offers.
Bancor Exchange Halts IL Protection Offers
In the report, Bancor cited that it would halt the offers for now due to the hostile bearish market status. However, it promised to restart the offer once the market becomes bullish and normal again.
The exchange announced the news during the AMA program. Henceforth, users who withdraw their funds won’t partake in the impermanent loss protection.
Also, the Bancor DAO has to approve the decision before it can come to pass. To this effect, the BIP 21 would be held soon.
Bancor said that it would strive hard and keep all hands on deck to restore normalcy to its impermanent loss protection offers soon. However, it also claimed that it would have enough freedom to rest for some time before it would bring the offers again.
Furthermore, the crypto exchange pointed out two cases that happened recently. One was an entity that liquidated its position and withdrew a huge sum of funds.
The second opened a large short position. The firm decided to stop offering IL protection because of liability cases as cited above.
However, the decision can also be seen as a sign that the exchange has begun to feel the touches of the crypto bloodbath. Everyone associated with the firm continued to hope that everything would be returned to normalcy soon.
The Value Of BNT Token Drops Steeply Like Others
Meanwhile, BNT, the native token of Bancor, witnessed a significant loss of 50%. It is currently traded at $0.52, which is quite low.
However, the current price is still significantly higher than the token’s all-time low in March. This is unexpected as all tokens across all crypto networks suffered in the current bloodbath.
Even stablecoins are not left out as many of them depegged from the 1 dollar mark. This has caused many networks that own stablecoins to borrow massively to avoid liquidation.
Many people and institutions have fallen victims to the dipping crypto market. Popular among the victims are the Celsius Network and the Three Arrow Capital.
At the moment, a lot of speculation has been going on over the financial crises Three Arrow Capital is facing. Rumor has it that insolvency has overwhelmed it.
However, it remains a fact that the continuing bloodbath is a looming danger for the future of the crypto industry.