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Crypto lending company Babel Finance halts redemptions and withdrawals

babel.finance

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Re: Crypto lending company Babel Finance halts redemptions and withdrawals

#71

Post by icu »

shafyy wrote: post #39
icu wrote: post #33

My biggest takeaway right now is to study the crypto firms and projects that are having trouble as a way to abstract what red flags to look for. For example, with Terra the abstraction was that pegs don't work as we've seen many a time, especially when Soros broke the BoE. I took a small bath with my Terra holding and life goes on. I can do that because I didn't use leverage, I can lose everything I put into crypto,…

I do have a great analysis framework for crypto projects: "is crypto project?" -> "stay away"

Sure I get that, but I'm old enough to remember the .com crash carnage and people saying that the web was a total waste of time etc and look how wrong they were.

I think that the future is a probability distribution, and there is a non-zero probability that crypto doesn't die but keeps growing. Therefore, I'm not all in, but I'm not all out.

Re: Crypto lending company Babel Finance halts redemptions and withdrawals

#72

Post by O__________O »

aaaaaaaaata wrote: post #58
O__________O wrote: post #50

Besides Terra (LUNA), Celsius Network (CEL), 3AC, and Babel Finance —- are there other examples? * As is, while clearly some of these failures have had a massive impact, there clearly a lot of DeFi projects of significance still standing: https://coinmarketcap.com/view/defi/

Quoted post unavailable.

It’s amazing to me how fast the number of meaningless comments are growing on HN. Anything of substance to add?

Re: Crypto lending company Babel Finance halts redemptions and withdrawals

#73

Post by delaaxe »

rvz wrote: post #7

Not all of these crypto projects will survive. When the tide lowers, we will be seeing who is swimming naked and it looks like these DeFi projects have been caught after the hype has died with the market sentiment turning bearish for crypto in general. The ones that will survive this crypto crash are probably going to be around for much longer, especially most cryptocurrency coins and blockchains (and not the ERC-20…

DeFi projects are doing just fine and work as expected. All these news are about centralized finance companies being irresponsible if not outright malevolent

Re: Crypto lending company Babel Finance halts redemptions and withdrawals

#74

Post by VHRanger »

O__________O wrote: post #50

Besides Terra (LUNA), Celsius Network (CEL), 3AC, and Babel Finance —- are there other examples? * As is, while clearly some of these failures have had a massive impact, there clearly a lot of DeFi projects of significance still standing: https://coinmarketcap.com/view/defi/

Babel was pretty important to other lending institutions.

Here are dominos to fall ahead of us:

- BlockFi

- Voyager

Somewhere down the line, tether is also standing. We know they're insolvent, the question is when redemptions become a problem. And at that point, the abyss

Re: Crypto lending company Babel Finance halts redemptions and withdrawals

#75

Post by dig1 »

lifty wrote: post #45

Question for the crypto skeptics of HN. Do you think this cycle the whole crypto space goes down the drain never to be heard of again? Do you think the whole space is a fad or do you think there are patches of values underneath the froth? How do you see the space evolving? Thanks!

I'm not a crypto/finance expert, but the current crypto space reminds me of the early US "Free Banking" era. Too many players, wild west, many earners, and many losers. There is a tech & concept value in crypto space, so I don't think it will go down the drain. It will take time to stabilize, just like US banking sector.

Re: Crypto lending company Babel Finance halts redemptions and withdrawals

#76

Post by ceejayoz »

ClumsyPilot wrote: post #69
ceejayoz wrote: post #57

Earlier quoted context omitted.

> With DeFi (decentralized finance) you have transparency over what the smart contract does. No, you don't. People find subtle bugs in open source code all the time, some of them disastrous. Unintentional bugs in smart contracts have lost tens of millions of dollars multiple times; imagine what you could accomplish with intentional holes. Parity lost $280M alone. https://www.cnbc.com/2017/11/08/accidental-bug-may-hav…

Thats a major problem, but it's a different problem to the one OP is talking about - some shady guy taking or misusing your money on a whim

What if said shady guy wrote a subtle bug into the contract intentionally?

Re: Crypto lending company Babel Finance halts redemptions and withdrawals

#77

Post by [deleted] »

aaaaaaaaata wrote: post #58
O__________O wrote: post #50

Besides Terra (LUNA), Celsius Network (CEL), 3AC, and Babel Finance —- are there other examples? * As is, while clearly some of these failures have had a massive impact, there clearly a lot of DeFi projects of significance still standing: https://coinmarketcap.com/view/defi/

Quoted post unavailable.

[deleted]

Re: Crypto lending company Babel Finance halts redemptions and withdrawals

#78

Post by bena »

lifty wrote: post #45

Question for the crypto skeptics of HN. Do you think this cycle the whole crypto space goes down the drain never to be heard of again? Do you think the whole space is a fad or do you think there are patches of values underneath the froth? How do you see the space evolving? Thanks!

Regardless, I think bitcoin survives. I don't think it has patches of value, but I do think others think that it does.

I think eventually bitcoin fills the same space as "no programming knowledge required coding tools". Every few years it'll spike as this time they know went wrong the last time. And then the inevitable happens.

Re: Crypto lending company Babel Finance halts redemptions and withdrawals

#79

Post by blitzar »

ceejayoz wrote: post #49
lifty wrote: post #45

Question for the crypto skeptics of HN. Do you think this cycle the whole crypto space goes down the drain never to be heard of again? Do you think the whole space is a fad or do you think there are patches of values underneath the froth? How do you see the space evolving? Thanks!

There will always be new victims ready to hear "this time is different".

Let me just see if we can validate this comment ...

People bought luna 2.0 within days of the collapse of luna 1.0 - check

Re: Crypto lending company Babel Finance halts redemptions and withdrawals

#80

Post by typon »

shafyy wrote: post #39
icu wrote: post #33

My biggest takeaway right now is to study the crypto firms and projects that are having trouble as a way to abstract what red flags to look for. For example, with Terra the abstraction was that pegs don't work as we've seen many a time, especially when Soros broke the BoE. I took a small bath with my Terra holding and life goes on. I can do that because I didn't use leverage, I can lose everything I put into crypto,…

I do have a great analysis framework for crypto projects: "is crypto project?" -> "stay away"

I think its better to rip the bandaid off using this approach rather than suffer through another few years of these scams and trash. Just declare this whole crypto thing as a failed experiment and move on.
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