Oxygen Protocol, a Solana-based decentralized prime brokerage platform, revealed on November 15 that 95% of its MAPS and OXY token supply is being held on bankrupt cryptocurrency exchange FTX.
1/ The MAPS and Oxygen teams are shocked by events related to FTX Group’s bankruptcy proceedings.
— Oxygen – Decentralized Prime Brokerage (@Oxygen_protocol) November 15, 2022
The statement said the struggling crypto company has no stake in the business, but holds a sizeable portion of the tokens.
“(FTX) has acted as a custodian of over 95% of the overall supply of ecosystem tokens, both locked and unlocked.”
The MAPS and Oxygen teams expressed their shock over the FTX bankruptcy case, adding that they only have access to publicly available information.
Oxygen Protocol said it is exploring all options to protect its ecosystem. DeFi Protocol said it is hiring legal counsel to help with the process.
The cryptocurrency community, on the other hand, seems unsurprised by the latest revelations. Some comments suggest that Sam Bankman-Fried was in control of the protocol and that he was tweeting the announcement.
This is the first tweet since April 2022 stfu
—ZachXBT (@zachxbt) November 15, 2022
ZachXBT pointed out that this is the protocol’s first tweet since April 2022.
The Maps and Oxygen protocols were projects sponsored by Alameda Research. In January 2021, Alameda Research led his $50 million investment round into Maps.me. He also led his $40 million investment round in Oxygen in February 2021.
MAPS and OXY make up a significant portion of Alameda’s balance sheet, according to reports.
According to CryptoSlate data, OXY has lost 46% of its value over the past seven days, trading at $0.0202 at the time of writing. MAPS is also down about 47% to $0.062 at the time of writing.