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A trader works at the New York Stock Exchange NYSE in New York, the United States, on March 9, 2022. Michael Nagle/Xinhua via Getty
Crypto lender Babel is freezing withdrawals for users due to "unusual liquidity pressures."
It's the second major platform to do so this week as the crypto market faces a massive selloff.
Celsius previously stopped letting customers withdraw their holdings on Sunday.
1 of 12 Photos in Gallery©Stephen Jones / Insider
See inside an NFT art gallery with 36 TV screens, 6 advisors, and space-themed dog sculptures. Investors can pay however they want.
Quantus Gallery is London's first permanent NFT art gallery. Insider took a tour.
NFTs are displayed on 36 TVs, alongside dog sculptures and physical pieces of art.
It has six in-house advisors to educate visitors about how to make, buy, and sell NFTs.
The idea of a physical art gallery that is dedicated to selling digital artworks seems slightly paradoxical.
But Josh Sandhu, James Ryan, and Ryan Marsh say it's the next logical step of a global market that surged to $41 billion in 2021, which is why they've opened what is London's first permanent NFT art gallery, Quantus Gallery.
An NFT — or non-fungible token — is a digital asset built onto a blockchain. It essentially provides a unique record of ownership. Many consider them to be modern-day collectibles.
Some consider NFTs as the future of art and highlight the fact that established art auction houses Christie's and Sotheby's are already in on the trend. Skeptics say it's a volatile asset and any popularity is merely a bubble.
Quantus' three co-founders have backgrounds in graphic design, art galleries, and finance respectively. They said they want to appeal to the "95% of people" who don't yet fully understand the asset. Opening a physical gallery offers something different, and gives more people a way into the market, they add.
Intrigued, curious and slightly skeptical, Insider went along to see what it's like.
Another major crypto lending platform has stopped letting people take out their holdings.
Babel Finance, which is based in Hong Kong and boasts a customer base of 500, said Friday that withdrawals from its services will be "temporarily suspended" as cryptocurrencies face a brutal and widespread selloff.
"The crypto market has seen major fluctuations, and some institutions in the industry have experienced conductive risk events," Babel said on its website. "Due to the current situation, Babel Finance is facing unusual liquidity pressures."
Babel did not immediately respond to Insider's request for comment.
The firm was last valued at $2 billion in May, Reuters reported, and only allows the trading and lending of bitcoin, ethereum, and stablecoins.
It's also not the only lending platform to halt withdrawals as liquidity pressures mount amid a worsening market rout.
Celsius Network said Sunday that it was doing the same for its 1.7 million customers, citing "extreme market conditions."
Celsius users told Insider this week that they're anxious about their holdings currently trapped on the platform. One user said he has $105,000 worth of crypto stuck on the app. Another said she may have lost two years' worth of income.
The price of bitcoin, still the largest and most well-known cryptocurrency, has declined 70% from a November 2021 peak. The slump has dragged down the entire market's value below $1 trillion for the first time since February 2021.
The rout's also impacted hedge funds like the 10-year-old, crypto-focused Three Arrows Capital, also known as 3AC. The firm has hired "legal and financial advisers," the Wall Street Journal reported, following massive losses sparked by a major investment in stablecoins that later tanked.
3AC is also now faced with $400 million in liquidations, according to The Block.
Founders Zhu Su and Kyle Davies, meanwhile, have "ghosted" their business partners as they grapple with concerns over insolvency, Vice reported.
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