There is only one certainty in the world of crypto: that nothing is certain. The crypto world tends to keep people on their toes. Something big or downright chaotic can happen in a minute. Something similar just happened. The BABY token by Babylon is facing a major dip in the last 24 hours.
We are talking about $1.2 billion BTC unstaked. This had a massive impact on the TVL, where it came crashing by 32%. This massive dip has sent people into a state of frenzy. While many people are suggesting foul play, industry experts believe that it is just another regular crypto drama.
The recent drop in Babylon came shortly after the airdrop campaign ended. On the third of April, Babylon Foundation distributed close to 600 million BABY tokens to early investors. Following this, around 256 BTC, valued close to $21 million, were unstacked from the protocol itself.
One transaction that stood out was a specific transaction where a 1.35 BTC transaction consumed a third of the BTC block. Users who received the reward then unstaked their BTC purposefully. This initiated the 32% drop in the total value. It also raised many questions.
BABY allows users to earn profit or rewards by staking their BTC. This is aimed at bringing BTC to the DeFi ecosystem. This could initiate something different. Therefore, it is important to see where this is going.
