23 February, 2024

Alameda Claims ‘It Wasn’t Us’ Amid Speculation About Bitdao’s 20% Plunge

1 year ago

22 Nov, 2023

After the DAO’s native token BIT fell 20% on Tuesday, the BitDAO community issued a proposal asking Alameda to provide the on-chain address of the tokens that promised not to be sold for three years.

According to the WU Blockchain report, if the proposal does not receive a response within 24 hours, the community may dump or will decide what to do with the 3362315 FTT. 

The BITDAO community, which is supported by crypto exchange Bybit, Pantera, billionaire Peter Thiel, and several other funds, asked the trading firm, Alameda, to convert 3.36 million FTT tokens to prove that they still hold 100 million BIT tokens acquired in November last year. Alameda was required to hold tokens for at least three years as part of the token swap agreement.

Bitdao community is questioning the sudden dump of $bit token caused by Alameda dumping and breaching the 3 yr mutual no sale public commitment

Ben Zhao the co-founder of crypto exchange Bybit tweeted.

Ben Zhao believes Alameda Research dumped BIT tokens and violated their agreement to avoid selling each other tokens for at least 3 years. 

In response to Zhou, Caroline Ellison, chief executive officer of Alameda, tweeted that the team is currently busy “but that wasn’t us” and that Alameda will provide BitDAO proof of funds “when things calm down.”

According to Lookonchain, Alameda transferred 4,637,839 BIT worth $1.6 million to FTX 3 hours ago. The FTX hot wallet currently holds 97 million BIT, which is less than the 100 million committed by Alameda Research.

However, Zhao thanked Caroline for her prompt response, which reassured the BitDao community. “For others that are jumping into the conclusion, nothing is confirmed until proven, I am sure Alameda will be able to navigate the current straits.” he added.

BitDAO’s concerns may stem from reports that Alameda is liquidating its other token holdings in order to defend FTX’s native cryptocurrency.

In four days, FTTT has dropped 40% to $15. The FTX-Alameda saga started last week when CoinDesk revealed that Alameda had large amounts of FTT tokens on its balance sheet. Binance responded by liquidating its FTT holdings, sparking industry debate.