BABB, the banking-based cryptocurrency, has caused something of an investor crisis by changing the way that token holders communicate with them… by not allowing them to. In a ‘Progress Update’ posted on Medium last week, the group announced that they had chosen to “decommission” their community Telegram channels, which, as with many projects, is the bridge between the project and token holders. This was in response to a flurry of negative comments following a spate of bad news for the project.
Huge Selloff Sparks Concerns
The decision to make the Telegram channels one-way came just days after the price crashed almost 50% in 24-hours, a crash caused by “a former member of the team who sold this BAX”. This event caused consternation within the channels at the time and led to panicked members asking numerous questions, spreading rumors and otherwise stirring a pot that was already well-stirred by the event itself. This seems to have been the final straw for the BABB team, who released the Progress Update just five days later where they announced the change, which, by and large, didn’t go down well:
How is this a “progress” update? I see nothing here about results. What’s going on with you guys, now you’re going radio silent. Not comforting.
— virtcoincollector (@virtcoincollec1) February 26, 2019
The Changing Face of BABB
The changes being brought by BABB tie in with their recently stated ambitions. This includes the move towards a more traditional model of referring to token holders as customers rather than in terms relating to investment, which hasn’t gone down well with some holders. Yet, this makes sense with BABB’s ambitions to establish themselves as a big player in the crypto-traditional banking world. However, even the most ardent supporters have become concerned that the team have now missed their quarterly goals for the second quarter in a row. There were one or two however who see the recent changes as being positive for the project:
I like how the $BAX team closed their telegram. It was sloppy and a whole bunch of fanboy nonsense in there. No need for an open telegram whatsoever. #carryon
— Umvelinqangi (@umvelinqangi) March 1, 2019
Monday Sees More Sells
Reassurances from BABB that last week’s large-scale selloff would be the end of the matter seemed somewhat undermined, when it was alleged that another wallet registered to a team member sold 40% of their holding early on Monday. This is despite BABB insisting that a maximum of 25% is allowed to be sold by team members. It seems however that this arrangement was more of a gentleman’s agreement than anything enforced via an escrow system, which leaves the value of the token, and the integrity of the team, on something of a precipice. It seems that many supporters will need substantially good news to regain their faith in the project, something that does not seem immediately forthcoming.
