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Bancor exchange rolls back non-permanent loss protection due to “hostile market conditions”
Decentralized cryptocurrency trading platform Bancor has halted its non-permanent loss protection mechanism
Decentralized cryptocurrency exchange Bancor has stopped its non-permanent loss protection mechanism. Representatives of the site reported about it in their blog. It is claimed that the reason for stopping the mechanism was “hostile market conditions.
Non-permanent losses are price discrepancies in assets that are placed by investors in liquidity pools for passive income.
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Representatives of the site stressed that the exchange is not under attack and that user funds are safe. However, the mechanism will be restored only after “market stabilization”. It is not clear when exactly this will happen. Along with stopping the asset protection mechanism, the exchange also stopped the deposit of cryptocurrencies.
“In analyzing the current circumstances, we noticed anomalies and even manipulative behavior affecting [trading] data – Bancor said.
The company did not specify what manipulative behavior it was referring to. Meanwhile, the cryptocurrency community speculates that problems with the Celsius Network lending service may be the cause of the suspension.
As reported by a user under the nickname @MikeBurgersburg, citing his own sources, the “hostile market conditions” refers to Celsius Network, which withdraws BNT tokens from Bancor, and then actively sells on the exchange FTX.
At the time of writing, neither Bancor nor Celsius Network has commented on the allegations in the dump.