BitDAO (BIT) was launched after FTX founder Sam Bankman Fried’s venture capital firm, Alameda Research, sold 100 million BIT tokens in violation of an agreement signed in 2021. I suspect it has plummeted.
The DAO community asked Alameda to prove they still own BIT tokens, and Alameda responded by transferring over 100 million BIT tokens from the FTX hot wallet to Alameda addresses.
Alameda announced a proposal titled BIP-4 He also proposed to BitDAO to exchange 100 million BIT tokens for Alameda and 3,362.315 FTT tokens and pledge not to sell each other’s tokens for three years. The proposal, from 20 October 2021 he can vote until 30 October 2021, was passed with his 100% affirmative vote of the participants.
The token swap will take place on November 2nd, 2021 in three transactions and both parties have agreed not to sell until November 2nd, 2024.
On November 8th, both BIT and FTT experienced a sharp 20% decline almost simultaneously. BIT fell from $0.40 to $0.33 while FTT plunged from $22.12 to $15.36. Both tokens quickly recovered from some of their losses. At the time of writing, BIT is trading at $0.39 and FTT is trading at $18.184.
In light of recent speculations about FTX’s financial stability, the BitDAO community suspected Alameda had sold its holdings of BIT, causing the sudden sale of both FTT and BIT.
BitDAO founder and CEO Ben Zhou tweeted to explain the allegations, announcing that he is seeking proof of funding from Alameda.
The Bitdao community questions the sudden dump $bit Tokens resulted from Alameda’s dumping and violation of its 3-year no cross-selling pledge. Nothing has been confirmed, but the bitdao community would like to confirm proof of funding from Alameda. https://t.co/YassKhcdPt
— Zhou Ben (@benbybit) November 8, 2022
The BitDAO community has ensured that 3,362.315 FTT tokens are safe and sound in BitDAO’s treasury. Asked Alameda vouches for BitDAO by transferring 100 million BIT tokens to an on-chain address for verification by the BitDAO community.
The BitDAO community has warned that if Alameda fails to provide sufficient proof of funds within 24 hours:
“It is up to the BitDAO community to decide what to do with $FTT in the BitDAO Treasury (voting or other emergency measures).”
More than 100 million BIT tokens will be distributed according to BitDAO’s request forwarded From FTX hot wallet to Alameda address.
This address is the original address where Alameda agreed to receive BIT tokens when the deal is signed in 2021.