BitDAO Threatens to Sell FTT After BIT Token Drops 20%

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  • BitDAO asks Alameda to provide proof of funds after the BIT token drops 20%.
  • Alameda and BitDAO made a deal to hold each other’s tokens for 3 years.
  • The community proposed that Alameda should transfer 100M BIT tokens to a non-exchange address until after its agreement.

BitDAO, one of the leading decentralized autonomous organizations, asked Alameda Research to provide proof of funds after the BIT token plunged 20% in the course of one hour.

In a tweet, Bybit co-founder Ben Zhou revealed that the community requests Alameda to provide proof that they still hold the 100 million BIT tokens promised not to be sold for 3 years, threatening to take action if Alameda failed to shed light within 24 hours.

According to the discussion, the BitDAO community stated that they currently held their BitDAO x FTT portion in the BitDAO Treasury. The group also proposed that Alameda should transfer the 100 million BIT tokens to an on-chain (non-exchange) address until the end of the agreement.

In November 2021, BitDAO made a pact with Alameda, a crypto firm founded by now-troubled Sam Bankman-Fried, to swap 100 million worth of BIT tokens with 3.36 million FTX tokens (FTT). The agreement requires Alameda to hold the tokens for three years.

However, after FTX’s competitor Binance liquidated its FTT holdings, the BitDAO community speculated that Alameda sold their portion to avoid the further downfall of FTT, the backbone of the FTX ecosystem.

Meanwhile, Alameda’s CEO Caroline Ellison immediately replied to Zhou’s tweet denying the claims that it was the firm’s doing and swore to provide the “proof of funds when things calm down.”

The response of Alameda’s CEO certainly calmed the market as the BIT token bounced and is now trading at $0.3874, after it fell for over $0.26 earlier today, as per CoinMarketCap. 

On the other hand, the distressed FTX token (FTT) is down 19.55% over the last 24 hours. At the time of writing, FTT is currently trading at $18.29.

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Bryan is a gamer who became genuinely interested in crypto after his initial exposure to Play-to-Earn games like Axie Infinity and Pegaxy. He has basic knowledge of technical analysis and is keeping an eye out for interesting developments in the metaverse and GameFi space.