Crypto News

Balancer’s native coin BAL resilient amidst a security emergency

The native token of balancer, BAL, appears to be holding its own despite the platform’s ongoing security issues. On Friday, January 6th, the tweeted DeFi– Projekt issued a statement asking liquidity providers on its platform to withdraw their tokens from specified pools worth $6.3 million.

Via its official Twitter handle, the decentralized exchange stated that there was a security risk caused by the emergencyDAO of the platform cannot be remedied. As such, they advised LPs to immediately remove their assets from any affected pools.

IMPORTANT: Due to a related issue, LPs of the following pools should remove their liquidity as soon as possible as the issue cannot be mitigated by the emergency DAO.

— Balancer (@Balancer) January 6, 2023

Balancer’s native coin BAL resilient amidst a security emergency, Crypto Trading News

BAL Token holds its ground for now

Earlier today, Balancer confirmed that 85% of the assets in these pools have been moved, while continuing to urge LPs to withdraw the remainder as they attempt to resolve the issue at hand. Interestingly, given the ongoing problem of the decentralized exchange, several investors seemed to have lost their faith in the native one cryptocurrency BAL of having preserved the platform.

In the last 24 hours after Balancer’s alert, BAL appeared unaffected, falling just 0.13%, according to data from CoinMarketCap. At the time of writing, the ERC-20 token is exchanging hands at $5.35 with its market cap value fixed at $248,354,921, a negative change of just 0.11% from the last day.

Balancer’s native coin BAL resilient amidst a security emergency, Crypto Trading News

BAL is trading at $5.34 | Source: BALUSD chart on Tradingview.com

While it’s too early to determine the impact of the balancer security issue on BAL’s market performance — especially since the details are still unknown — these early signs show that BAL could weather this period, and investors needn’t panic .

Is Balancer Experiencing Another Crypto Exploit?

Like every coin in the cryptoverse, there is no certainty about market patterns. While Balancer has not disclosed the nature of the vulnerability and has assured the public of full disclosure following a successful mitigation, much speculation still lingers in the crypto community.

Many suspect a smart contract exploit as it won’t be the first Ethereum-based DEX would fall victim to one. In August 2020, Balancer was hacked, resulting in the loss of $500,000 worth of ETH.

However, compared to 2020 when Balancer was still an emerging crypto project, the DeFi protocol currently ranks as the fourth largest decentralized exchange with a TVL value of $1.49, based on data from DeFi analytics platform Defillama.

If current exploitation fears are confirmed, the fallout could be quite dire for a crypto market currently trying to recover from the FTX exchange crash late last year.

In November 2022, FTX, formerly one of the largest cryptocurrency exchanges, collapsed, causing the crypto market to lose billions of dollars. The crash was due to heightened leverage and solvency concerns over FTX’s Alameda Research trading arm, which resulted in many investors attempting to withdraw their assets from the exchange at the same time, leading to a liquidity crunch and eventual bankruptcy.

Featured image: ICOnow.net, Chart by Tradingview.com

Source: Crypto News Deutsch

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button