BitDAO (BIT), the native token of the cryptocurrency exchange Bybit, abruptly fell 20% on Tuesday. Ben Zhou, co-founder of the cryptocurrency exchange Bybit, thinks Alameda Research liquidated BIT tokens and broke the agreement to refrain from trading tokens for at least three years. If Alameda doesn't provide proof within 24 hours, the community may dump 3,362,315 FTT tokens.
Dumped BIT Tokens Were Caused by Alameda's Breaching of Agreement
On November 8, the BitDAO community published an urgent request asking Alameda Research to divulge the on-chain address of BIT coins kept as part of the three-year mutual commitment. Ben Zhou, a co-founder of Bybit, accused Alameda of selling BitDAO (BIT) coins, which prompted the action.
"Bitdao community is questioning the sudden dump of $bit token caused by Alameda dumping and breaching the 3 yr mutual no sale public commitment. Nothing is confirmed but bitdao community would like to confirm a proof of fund from Alameda."
Bybit's BIT token unexpectedly fell 20% in just one hour today. In 2021, 100 million BIT were transmitted to an FTX exchange address by Alameda Research. 3,362,315 FTT tokens are now held by the BitDAO community in the BitDAO Treasury. Both parties agreed to refrain from selling tokens for three years. Alameda would only get $30 million if they sold the tokens.
Caroline Ellison, CEO of Alameda, retorted that her company was not responsible for the waste. Additionally, she pledged to give Ben Zhou, a co-founder of Bybit, proof.
According to on-chain data, Alameda transferred 4,637,839 BIT worth $1.6 million to FTX 3 hours ago, according to a tweet from Lookonchain. Less than the 100 million BIT Alameda Research pledged, FTX wallet now has 97 million BIT in the FTX hot wallet.
BitDAO (BIT) and FTX Token (FTT) Both Fall by 20% Apiece
Over 22% of FTX Token (FTT) was lost in the previous 24 hours as it appeared that whales and investors were selling their holdings. The CEO of Binance, "CZ," previously disclosed plans to sell all FTT tokens in the upcoming months. Although it caused a liquidity problem on FTX, founder Sam Bankman-Fried noted that deposits and withdrawals are proceeding without any problems. Today's low price for FTT was $15.56.
In addition, the price of BitDAO (BIT) fell by almost 20% to a low of $0.30. The token has now bounced back from its bottom, although its 24-hour decline is still 9%.