Alameda’s 100 Million BIT Bag Unsold, BitDAO Verifies Proof Of Tokens

Summary:

  • Sam Bankman-Fried’s Alameda Research provided proof of funds for 100 million BIT tokens held by the trading firm.
  • The asset declaration was a response to a ByBit community proposal asking the company to provide proof of the tokens.
  • ByBit’s community asked for proof after BIT fell around 20%, sparking rumors that SBF’s company sold BIT tokens amid the FTT controversy with Binance. 

Alameda Research disclosed proof that the company held 100 million BIT tokens amid concerns that the trading firm backed FTX CEO Sam Bankman-Fried the coins to support FTT prices. SBF’s firm was asked to provide proof of the assets by the ByBit community after the price of BIT fell as much as 20% early on Tuesday. 

“the 100M $BIT has been transferred to the original BIP-4 swap wallet “ the BitDAO tweeted to confirm Alameda’s proof of funds. The DAO thanked SBF’s quantitative trading outfit for a prompt response and said the swift actions on the company’s part bolstered community confidence. 

2/2 For community confidence, we recommend that the swapped $BIT and $FTT remain held in our respective on-chain addresses until the end of the no-sale commitment period. Thanks.

Crypto exchange ByBit issued BIT as its native coin and governance token for its community in the BitDAO, a decentralized autonomous organization made of ByBit users and other stakeholders. 

Back in November 2021, Alameda acquired 100 million BIT tokens in a swap deal with ByBit. ByBit received some 3.36 million FTT coins as part of the transaction. Both parties agreed not to any coins from the agreement until 2024. 

After BIT dipped about 20% from $0.41 to $0.30, BitDAO requested that SBF’s firm provide proof of the 100 BIT tokens. The community was supposedly concerned that Alameda might be tight on cash and decided to dump BIT tokens to free up liquidity. Sources and data reported that FTX pulled out assets across a myriad of DeFi protocols.

However, the trading company has since quelled rumors on the matter and provided proof of the tokens. ByBit co-founder Ben Zhou confirmation of the proof, and reminded the broader crypto community to avoid “jumping to conclusions”.

Thanks for the swift response Caroline, this gave a lot of confidence to the Bitdao community. For others that are jumping into the conclusion, nothing is confirmed until proven, I am sure Alameda will be able to navigate the current straits. https://t.co/I4KZk9kdxa

Alameda Dominates Spotlight As Sam Bankman-Fried Weathers FTT Saga

Indeed, the trading firm backed by FTX CEO Sam Bankman-Fried has drawn attention in recent days since Binance disclosed a trading strategy to exit FTT positions. Binance CEO Changpeng Zhao tweeted the decision to crypto Twitter, sharing insight on the reasons behind the move and supposedly sparking speculations.

Liquidating our FTT is just post-exit risk management, learning from LUNA. We gave support before, but we won’t pretend to make love after divorce. We are not against anyone. But we won’t support people who lobby against other industry players behind their backs. Onwards.

CZ remarked that Binance planned to offload some $2.1 billion worth of FTT in the free market. Alameda CEO Caroline Ellison replied with an offer to scoop up CZ’s FTT bags in a private deal to minimize market impact. 

Per TradingView, FTT dipped since Ellison’s offer, The coin exchanged hands for $17.12 at press time. It’s unclear if Alameda’s offer to buy Binance’s FTT still holds after Tuesday’s 20% dip.


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