Recent concerns around the volatility of FTX Token has entered into Sam Bankman-Fried, CEO, FTX’s other business operation called Alameda Research, on account of the BitDAO community requesting information about Alameda’s BitDAO (BIT) holding commitment, as reported by Cointelegraph.
According to Cointelegraph, on November 2, 2021, BitDAO made the swap of 100 million BIT tokens with Alameda in exchange for 3,362,315 FTT tokens for a public commitment to have control over each other’s tokens, until November 2, 2024. With regard to uncertainties and speculations, BitDAO community reacted towards the sudden fall of BIT prices on November 8, 2022, suspecting Alameda of dumping the BIT tokens and breaching the three-year mutual no-sale public commitment.
On the basis of information by Cointelegraph, the BitDAO community asked for an allowance to monitor and verify Alameda’s commitment to holding BIT tokens. With regard to the situation, BitDAO gave proof which showed an address around BitDAO Treasury holding all 3,362,315 FTT tokens. Ben Zhou, co-founder, Bybit, a cryptocurrency exchange, mentioned that while no confirmation was received on the matter, the BitDAO community wanted to confirm proof of funds from Alameda. Against the accusation, Caroline Ellison, CEO, Alameda Rsearch, said that the company’s end consisted of no wrongdoings and they promised to reveal the proof of funds.
“If this request is not fulfilled, and if sufficient alternative proof or response is not provided, it will be up to the BitDAO community to decide (vote, or any other emergency action) how to deal with the $FTT in the BitDAO Treasury,” the warning highlighted for BitDAO’s proposal to request for Alameda’s funds proof.
Moreover, Cointelegraph noted that since November 6, 2022, many FTX users started facing problems while withdrawing their funds from the exchanges, with regard to delays and failures. Also, users facing delays in stablecoin withdrawals were informed that withdrawal speeds would be getting back to normal post banks resuming operations during the weekdays.
(With insights from Cointelegraph)