Following the recent dip in price of BIT tokens in the last 2 days, the BitDAO community have suspected a dump scheme by Alameda following their three-year no-sale commitment. And in response to this suspicion, they are now demanding that Alameda show them proof that they still have the 100 million BIT tokens they swapped a year ago with over 3 million FTT.
This is coming from ByBit co-founder, Ben Zhou, who has announced that although there is no proof that Alameda want to break the rules binding the no-sale commitment, the BitDAO community still insists on evaluating and confirming the existence of their tokens in Alameda’s possession.
Recall that there have been debate and speculations concerning the volatility of FTX tokens (FTT) and this has not augered well with FTX CEO, Sam Bankman-Fried, and most of his other businesses. One of such businesses is Alameda Research.
BitDAO Are Looking for the Cause of BTT’s Recent Price Crash
In November, 2021, BitDAO struck a three-year no-sale public agreement with Alameda which was to ensure that a portion of each party’s tokens remains held for three years to further guarantee price stability. BitDAO exchanged 100 million BIT tokens for Alameda’s 3.3 million FTT tokens, and as expected of both parties, these tokens are supposed to remain with them and not sold or dumped.
Now in November, 2022, BIT has experienced a very bad price fall, and the BitDAO community is not happy with this. They are looking for a way to remedy the price and tokenomics of their tokens and are suspicious of Alameda.
It is believed that the BitDAO community suspect that Alameda have dumped the 100 million BIT tokens which are supposed to be in their possession. Hence they are now seeking assurance from Alameda that they still have the tokens.
Bitdao Is Holding Up Their Own End of the Bargain, but Is Alameda Doing the Same?
As soon as they requested for the confirmation of Alameda’s possession of their 100 million BIT tokens, BitDAO presented proof that they have the 3,362,315 FTT tokens by presenting an address that shows the tokens in the possession of their BitDAO treasury. So the question to be asked now is if Alameda are holding up their own end of the bargain just as BitDAO have.
The BitDAO community have given Alameda Research 24 hours to honour their request, stating that they would prefer it if Alameda can transfer the 100 million BIT tokens to a non-exchange address where BitDAO can verify it to ensure that there is no foul play. This 24-hour ultimatum has also been backed up a warning from BitDAO which states that they would deal with the FTT in their possession however they deem fit if their request is not granted
In response, the CEO of Alameda Research, Caroline Ellison, has insisted that the price crash is not Alameda’s fault, they still have the BIT tokens in their possession, and would show proof when “things calm down”.
As Caroline Ellison has stated, the price crash may not be due to Alameda’s purported “dump” of the BIT tokens but that remains to be seen, and it’ll be worth the wait for investors and traders as they anticipate where they put their faith (and money) in.