1 year ago
After the Bitdao token’s quickfire plunge connected Nov. 7, members of the Bitdao assemblage person asked Alameda Research to code rumors the main trading level has dumped Bitdao’s BIT tokens. The dump, if confirmed, would beryllium a breach of a swap statement betwixt the 2 entities which prohibits the offloading of each other’s tokens earlier Nov. 2, 2024.
Alameda Research Has 24 Hours to Address Dump Allegations
Following the BIT token’s abrupt plunge — from astir $0.38 to $0.31 betwixt 11:00 and 11:05 p.m. EST connected Nov. 7 — the Bitdao assemblage has asked the Alameda Research squad to respond to token dumping allegations. In its BIP-4 update, the Bitdao assemblage said if its petition “is not fulfilled and if capable alternate impervious oregon effect is not provided” wrong 24 hours, past a ballot to find the destiny of FTT tokens held successful the Bitdao treasury volition beryllium held.
According to the update, Bitdao’s Oct. 30 swap statement with Alameda Research required the erstwhile to clasp 3,362,315 FTT tokens successful its treasury. Likewise, the statement besides compelled Alameda Research to clasp 100 cardinal BIT tokens for a play of 3 years. As per the agreement, some parties had committed not to merchantability each other’s tokens earlier Nov. 2, 2024.
Fallout Over SBF’s Alleged Backstabbing of Industry Rivals Worsens
In a effect to Bybit co-founder Ben Zhou’s tweet, which reiterated the Bitdao community’s concerns implicit Alameda Research’s alleged relation successful the BIT token’s plunge, the second firm’s CEO Caroline Ellison insisted that the main trading steadfast was not down the dump. Ellison explained:
Busy astatine the infinitesimal but that wasn’t us, volition get you impervious of funds erstwhile things calm down.
However, immoderate Twitter users person rejected Ellison’s denial and person pointed to onchain information which appears to suggest that Alameda Research is successful breach of its statement with Bitdao.
But you did merchantability 4,637,839 $BIT ($1.6M), didn't you?https://t.co/NRDFE6GxB5
— Lookonchain (@lookonchain) November 8, 2022
Reports of Alameda Research’s alleged dumping of BIT tokens came arsenic the fallout betwixt the main trading platform’s laminitis Sam Bankman-Fried (SBF) and the decentralized concern (defi) assemblage Alameda’s regularisation of Bitdao worsened.
As reported by Bitcoin.com News, the rumors and allegations that SBF had lobbied against rivals had prompted Binance to offload astir 23 cardinal FTT tokens connected Nov. 5. Before Binance’s dump of FTT tokens, reports of FTX’s insolvency had seen the token plunge from conscionable implicit $25 connected Nov. 5 to conscionable nether $17 astatine the clip of writing.
Commenting connected FTT’s plunge, Joe Consorti, a marketplace analyst, claimed successful a tweet that galore traders are present shorting the token and this has led to the implicit vaporization of $500 cardinal successful conscionable 2 hours.
“Everyone and their parent is shorting this thing. Every azygous circulating portion of FTT is astir apt sold abbreviated close now. FTX has to merchantability dollars to contend with Binance’s and retail’s spot merchantability pressure, arsenic good arsenic the derivatives apes. Congrats connected this CZ Binance, seriously,” tweeted Consorti.
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Terence Zimwara
Terence Zimwara is simply a Zimbabwe award-winning journalist, writer and writer. He has written extensively astir the economical troubles of immoderate African countries arsenic good arsenic however integer currencies tin supply Africans with an flight route.
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