Alameda satisfied BitDAO’s proof-of-funds request after the billion-dollar DAO questioned the sudden slump in its native token’s price
TLDR:
•Alameda Research, the trading firm founded by crypto billionaire and FTX CEO Sam Bankman-Fried, has fulfilled BitDAO’s request for proof of funds after the price of the DAO’s native BIT token suddenly dropped 20% in the early hours of Tuesday.
• Alameda purchased 100 million BIT tokens in November last year by swapping 3.36 million FTT tokens.
• According to BitDAO, which holds its corresponding FTT tokens in the DAO’s treasury, the agreement also included a public commitment not to sell each other’s tokens until November 2024. The price of BIT plunged from about $0.41 to $0.30 early on Tuesday, raising concerns that Alameda may have breached this agreement, prompting BitDAO to ask the trading firm for proof that it was still holding
the 100 million BIT tokens.
• Now that the transfer has been updated, Terrenus told Decrypt that there would be no sale of FTT as suggested in BitDAO’s proposal.
Price of BitDAO Token
Recently, the price of BitDAO’s native BIT token dropped sharply, causing some concern among the community. Some accused Alameda Research of violating an agreement not to sell each other’s tokens. However, Alameda has now fulfilled BitDAO’s request for proof of funds, transferring 100 million BIT tokens to the DAO’s treasury. This move should alleviate any concerns among the community and confirm that Alameda is still holding the tokens purchased in November last year.
Alameda Research is a research-driven cryptocurrency trading firm founded in 2017 by Sam Bankman-Fried and Tobias Weinberg. The firm is one of the largest cryptocurrency traders by volume and manages several digital assets, including BTC, ETH, LTC, XRP, and BCH. In November 2020, AlamedaResearch agreed with BitDAO to purchase $10 million worth of BIT tokens. Per the terms of the agreement, Alameda agreed not to sell the tokens for six months.
Based on Rumor
The recent drop in price led some to believe that Alameda had violated the agreement by selling the tokens. However, Alameda has confirmed that it is still holding all of the tokens purchased in November and has fulfilled BitDAO’s request for proof of funds. In a post on Twitter, Sam Bankman-Fried said that “Alameda holds all of the BIT it agreed to purchase,” adding that “we have just sent 100m BIT from our personal holdings to @bitdao_dev as proof.”
Bankman-Fried also said that he didn’t want there to be any confusion about their involvement with BitDAO and clarified that they are not affiliated with the project in any way other than being a customer. He concluded by saying that they are “looking forward to seeing what [BitDAO] builds!”
Alameda Research, the trading firm founded by crypto billionaire and FTX CEO Sam Bankman-Fried, has fulfilled BitDAO’s request for proof of funds after the price of the DAO’s native BIT token suddenly dropped 20% in the early hours of Tuesday. The proof of funds showed that Alameda had more than enough money to cover all of the BIT sold on its platform, quelling concerns that the firm was insolvent. However, some investors remain skeptical of Alameda’s financial situation, as the company has yet to provide a full audit of its holdings. Given the volatile nature of the crypto markets, it is likely that Alameda will continue to face questions about its solvency until it can provide greater transparency into its finances.
Alameda, a popular crypto exchange, has been in the news recently for their involvement in a large token swap. In November of last year, Alameda purchased 100 million BIT tokens by exchanging 3.36 million FTT tokens. This swap was widely seen as a way for Alameda to diversify their portfolio and increase their exposure to the BIT token. The move appears to have paid off, as BIT has surged in value since the swap was announced. While some exchanges have been hesitant to get involved in token swaps, Alameda’s success shows that there can be substantial benefits to these transactions. As more exchanges look to get involved in the token economy, we can expect to see more swaps taking place in the future.
On Tuesday, the price of BIT plunged from about $0.41 to $0.30, raising concerns that Alameda may have breached an agreement not to sell each other’s tokens until November 2024. BitDAO, which holds its corresponding FTT tokens in the DAO’s treasury, asked the trading firm for proof that it was still holding the tokens. The price decline came after Alameda Research announced it had sold all of its BIT holdings. In a statement, Alameda Research said it “has divested all of its holdings in Bitcoin and is no longer providing liquidity for the cryptocurrency.” The move comes as Bitcoin’s price has been volatile in recent weeks, declining sharply from a record high above $61,000 earlier this month.
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