The native coin of crypto exchange Bybit, BitDAO (BIT), dropped dramatically by 20% on Tuesday. Bybit’s co-founder Ben Zhou claims that Alameda Research liquidated BIT tokens, breaking their promise to not sell each other’s tokens for three years. If Alameda does not provide evidence within 24 hours, the community may liquidate 3,362,315 FTT tokens.

Recent Released: As Market Tumbles, Crypto Community Calms FTX vs Binance “CZ” Spat

Alameda Lost Faith in the BIT Token and Dumped It

An urgent proposal was filed by the BitDAO community on November 8 asking Alameda Research to disclose the on-chain address where BIT tokens were being held as part of the 3-year mutual commitment.

Ben Zhou, co-founder of Bybit, said that Alameda was to responsible for the sale of BitDAO (BIT) tokens. “Bitdao community is questioning the rapid dump of $bit token triggered by Alameda dumping and breaching the 3 yr mutual no sale public promise,” Zhou said. The bitdao community would like to verify a proof of fund from Alameda, although this is not yet established.

The value of Bybit’s BIT token, used on the exchange, dropped by 20% in a single hour today. In 2021, 100,000,000 BIT were delivered to an FTX exchange address from Alameda Research. Meanwhile, there are 3,362,315 FTT tokens owned by the BitDAO community and stored in the BitDAO Treasury. Each participant agreed not to sell their tokens for a period of three years. Should Alameda decide to sell the tokens, they would only net $30 million.

The CEO of Alameda, however, has responded that the company is not responsible for the dumping. She also said she’d send the evidence to Ben Zhou, co-founder of Bybit.

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According to a tweet from Lookonchain, on-chain information shows that Alameda sent 4,637,839 BIT to FTX three hours ago, at a value of $1.6 million. To now, Alameda Research has pledged 100 million BIT, however the FTX hot wallet only holds 97 million.

BitDAO (BIT) and FTX Token (FTT) Fall by 20%

Speculators and large holders of FTX Token (FTT) have dumped their holdings, sending the token’s price down by nearly 22% in the last 24 hours. The CEO of Binance, “CZ,” has previously stated that all FTT tokens will be sold in the next months. However, FTX founder Sam Bankman-Fried assured the public that the problem has not affected the platform’s ability to accept deposits or make withdrawals. Today, the cost of FTT fell to $15.56, a new low for the market.

The cost of a single BitDAO token (BIT) dropped by approximately 20%, to a low of $0.30. After hitting a low, the token has rebounded somewhat, although it is still down 9% in the last 24 hours.

Source: Google Trend

By Vil Joe

A writer and editor based out of San Francisco, Vil has worked for The Wirecutter, PCWorld, MaximumPC and TechHive. Her work has also appeared on InfoWorld, MacWorld, Details, Apartment Therapy and Broke-Ass Stuart. In her spare time, she takes too many pictures of her cats, watches too much CSI and obsesses over her bullet journal.

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