Will 3.36 million FTX Tokens be let out in the market in 24-hours?

FTX, its sister company Alameda, and Binance have been the talk of the crypto town over the last couple of days. Well-known decentralized autonomous organization BitDAO stepped into the picture and gained limelight on Tuesday.

In just the past few hours, the DAO’s native token BIT dropped from a $0.41 to a low of $0.307. Despite the slight recovery noted, the token was trading 8.5% down on the daily at at press time.

Source: CMC

Bybit Co-Founder Ben Zhao tweeted that the BitDAO was “questioning” the sudden dump of the BIT token “caused by Alameda.”

Alameda, on its part, acquired over 100 million BIT tokens in November last year by converting 3.36 million FTX’s native token FTT. Per the token swap deal, Alameda is required to HOLD the tokens for a period of at least three years.

Community demands proof from Alameda

The community has now issued a proposal asking Alameda to provide the on-chain address of the tokens that it promised not to be sold for three years. According to the proposal,

For the Alameda x $BIT portion, the preferred method is for Alameda to transfer the 100M $BIT tokens to an on-chain (non-exchange) address for the BitDAO community to verify, and hold until the end of the agreement.

The BitDAO community has requested clarification to be provided within 24 hours. If not, as a response, the community will decide what to do with its share of 3.36 million FTT in its treasury.

If this request is not fulfilled, and if sufficient alternative proof or response is not provided, it will be up to the BitDAO community to decide (vote, or any other emergency action) how to deal with the $FTT in the BitDAO Treasury.

Responding to Zhou’s tweet, Alameda Research’s CEO Caroline Ellison said, “that wasn’t us.” She also added that she will provide the “proof of funds” when things calmed down. Zhou thanked Ellison for the swift response, and said that “it gives a lot of confidence to the BitDAO community.” He also asserted that “nothing is confirmed until proven,” and added,

“I am sure Alameda will be able to navigate the current straits.”

Also Read: FTT token plummets by 20% as FTX-Binance saga persists

  • Alameda
  • BitDAO
  • FTT
  • FTX

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