Following the rapid plunge of the Bitdao token on November 7, members of the Bitdao community asked Alameda Research to address rumors that the main trading platform was dumping Bitdao’s BIT tokens. . The dumping, if confirmed, would be a violation of the swap agreement between the two entities that prohibit the transfer of each other’s tokens before November 2, 2024.
Alameda Research has 24 hours to resolve dumping allegations
Following the sudden drop of the BIT token – from nearly $0.38 to $0.31 between 11:00 and 11:05 p.m. EST on November 7 – the Bitdao community has asked the Alameda Research team to respond to allegations of token dumping. In its BIP-4 update, the Bitdao community said that if their request “is not met and if sufficient evidence or an alternative response is not provided” within 24 hours, a vote to determines the fate of the FTT tokens held in the Bitdao treasury to be held.
Follow updateBitdao’s October 30 swap agreement with Alameda Research requires the company to keep 3,362,315 FTT tokens in its treasury. Likewise, the agreement also obliges Alameda Research to hold 100 million BIT tokens for a period of three years. Under the agreement, both parties have committed not to sell each other’s tokens before November 2, 2024.
The failure as SBF allegedly caused worse consequences for industry competitors
In a response to a tweet by Bybit co-founder Ben Zhou, reiterating the Bitdao community’s concerns about Alameda Research’s alleged role in the BIT token’s plunge, CEO Caroline Ellison of the firm asserted that the main trading firm was not behind the dumping. Ellison explain:
Busy but it’s not us, will get you proof of money when things settle down.
However, some Twitter users refuted Ellison’s denial and pointed to onchain data showing that Alameda Research was in breach of its agreement with Bitdao.
– Lookonchain (@lookonchain) November 8, 2022
The reports of alleged dumping of BIT tokens by Alameda Research come as a rift between the founder of major trading platform Sam Bankman-Fried (SBF) and the decentralized finance (defi) community of Regulations. Alameda’s about Bitdao went bad.
Like report by Bitcoin.com News, rumors and allegations that the SBF was campaigning against rivals led Binance to sell off nearly 23 million FTT tokens on Nov. 5. Before Binance sold FTT tokens, the FTX insolvency reports have seen the token plunge. $25 on November 5 to just under $17 at the time of writing.
Commenting on the FTT plunge, Joe Consorti, a market analyst, stated in a tweet that many traders are currently shorting the token and this has resulted in the complete evaporation of 500 million dollars in just two hours.
“People and their mothers are missing this. Every circulating unit of FTT could have been shorted by now. FTX had to sell dollars to deal with the spot selling pressure of Binance and retailers, as well as derivatives. Real congratulations on this CZ Binance,” Consorti tweeted.
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