BitDAO Community May Dump 3.3 Mln FTX Token (FTT), Here’s Why

Crypto exchange Bybit’s native token BitDAO (BIT) plummeted 20% suddenly on Tuesday. Ben Zhou, the co-founder of crypto exchange Bybit, believes that Alameda Research dumped BIT tokens and breached the commitment to avoid selling each other tokens for at least 3 years. The community may dump 3,362,315 FTT tokens if Alameda doesn’t give proof within 24 hours.

Alameda Breached Commitment and Dumped BIT Tokens

The BitDAO community issued an emergency proposal on November 8 seeking Alameda Research to share the on-chain address of BIT tokens stored as part of the 3-year mutual commitment. The move came after Bybit co-founder Ben Zhou blamed Alameda for selling BitDAO (BIT) tokens.

“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 exchange token BIT suddenly plummeted by 20% in an hour today. Alameda Research received 100 million BIT in 2021 and sent it to an FTX exchange address. Meanwhile, BitDAO community has 3,362,315 FTT tokens in the BitDAO Treasury. Both parties committed to not sell tokens within 3 years. If Alameda sold the tokens, they will receive only $30 million.

However, Alameda CEO Caroline Ellison replied that the firm was not behind the dump. She also promised to share the proof with Bybit co-founder Ben Zhou.

Lookonchain tweeted that on-chain data indicate Alameda transferred 4,637,839 BIT worth $1.6 million to FTX 3 hours ago. FTX wallet currently holds 97 million BIT in the FTX hot wallet, which is less than the 100 million committed by Alameda Research.

FTX Token (FTT) and BitDAO (BIT) Plummet 20%

FTX Token (FTT) fell over 22% in the last 24 hours as whales and investors seem to be selling their holdings. Binance CEO “CZ” earlier announced selling all FTT tokens in the next few months. It has triggered a liquidity issue on FTX, but founder Sam Bankman-Fried said deposits and withdrawals are running smoothly. FTT price dropped to a low of $15.56 today.

BitDAO (BIT) price also plummet nearly 20% to a low of $0.30. The token has now recovered from the low, but is still down 9% in the last 24 hours.

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.