Digital asset platform Bancor Protocol on Monday, June 20, announced that it was forced to take extreme measures due to the difficult situation in the digital asset market.
Bancor Protocol has suspended user loss protection services. The site team promised that as the economy stabilizes, the service will be launched again:
“This ILP suspension measure should give the protocol some room to recover. In the meantime, we are waiting for the markets to stabilize and are working to resume customer protection as soon as possible.”
The team clarifies that users who attempt to withdraw assets during this volatile time will not be immune from losses. Those who keep the assets in the protocol will continue to receive income and will be able to safely withdraw money in the future – when the protection is reactivated.
The developers assured that trading remains active in all liquidity pools of the network. At the same time, they drowned out that currently user deposits are not placed on the site in order to avoid confusion during direct interaction with the smart contract – when information about the suspended protection is not visible.
The company reassured users by saying that the platform has not experienced cyber attacks and user funds are safe in Bancor Protocol.
Last week, cryptocurrency lender Babel Finance reacted to the market downturn by suspending financial transactions. Earlier, staking platform Finblox placed a cap of $1,500 on monthly withdrawals and suspended rewards due to uncertainty around hedge fund Three Arrows Capital.
