• Balancer’s native token, BAL, has held up despite the platform’s ongoing security issues.
• On Friday, Jan. 6, the DeFi project tweeted a statement asking liquidity providers on its platform to withdraw their tokens from certain pools valued at $6.3 million due to a security risk.
• In the last 24 hours following Balancer’s warning, BAL has appeared unaffected, decreasing in value only by 0.13% based on data from CoinMarketCap.
Despite the ongoing security issues surrounding Balancer, the platform’s native token, BAL, appears to be holding up. On Friday, Jan. 6, the decentralized finance (DeFi) project tweeted a statement asking liquidity providers (LPs) on its platform to withdraw their tokens from certain pools valued at $6.3 million due to a security risk that could not be resolved by the platform’s emergency DAO. The team urged LPs to immediately remove their assets from all affected pools.
Earlier today, Balancer confirmed that 85% of the assets in those pools had been moved while still asking LPs to withdraw the remainder as they attempt to resolve the issue. Despite the current situation, several investors have retained their faith in the platform’s native cryptocurrency BAL. In the last 24 hours following Balancer’s warning, BAL has appeared unaffected, decreasing in value only by 0.13% based on data from CoinMarketCap. At the time of writing, the ERC-20 token is exchanging hands at $5.35, with its market cap value set at $248,354,921, representing only a 0.11% negative change over the last day.
With the decentralized exchange’s security issue unresolved, investors will be watching how the issue unfolds and whether the platform is able to recover. Those holding BAL tokens will be hoping that the token retains its value despite the current situation. If the platform is able to resolve the issue, it could lead to an increase in value for BAL tokens as confidence in the platform is restored.