Community Tensions Rise Over FTX Token Conversion
A recent discussion has kicked off in the Mantle decentralized autonomous organization (DAO), where a community member raised an eyebrow over the potential conversion of BitDAO (BIT) tokens, valued at a whopping $43 million, by the beleaguered FTX exchange and Alameda Research. To put it mildly, things are heating up faster than a freshly brewed cup of coffee in a crypto café.
Flashback: The Deal that Sparked Concerns
Let’s rewind to November 2, 2021. BitDAO struck a deal, swapping a staggering 100 million BIT tokens with Alameda in exchange for over 3.3 million FTX tokens (FTT). They both agreed to hold onto each other’s tokens for three years, which would be until Nov. 2, 2024—longer than most New Year’s resolutions last. However, the world of crypto turned upside down during the FTX fallout of 2022, leading BitDAO to suspect that Alameda was pulling some fast moves that tanked the BIT token value.
Denial and the Fallout
Former Alameda CEO Caroline Ellison was quick to deny any wrongdoing, claiming they weren’t behind the dump. In the crypto world, some might say denying it is the first step—though it often seems it’s the only step taken.
Unifying the Ecosystem: From BIT to MNT
Fast forward to May 2022, where BitDAO’s community voted to unify under the Mantle banner. Community member “Cateatpeanut”—yes, you read that right—championed the idea of integrating both ecosystems. Imagine the excitement; BIT holders would now get their tokens converted into MNT practically over night! On May 19, the vote passed with robust approval, like a hot potato in a game of pass. However, good vibes were short-lived with the looming FTX situation.
New Proposal: A Smart Contract for a Smart Move
On August 17, the subject of the Alameda-held BIT tokens came back to the spotlight. Cateatpeanut proposed that FTX’s BIT should not be easily converted to MNT due to “disqualifying factors.” What are these factors, you ask? Let’s just say there is a thrilling mix of anxieties that kept the community up at night—think sleepless nights filled with ‘did we just sink our own ship’ worries.
The community took this to heart, as Cateatpeanut pushed for a migration restriction to be included in a new smart contract. The on-chain migration contract has been put on pause as discussions continue—a textbook case of ‘let’s not throw good money after bad’ if there ever was one.
A Moment for the History Books
This saga is far from over. Whether you agree with Cateatpeanut or just want to jump on the hysterical crypto train, you might want to collect this article as an NFT. Why? Because preserving moments in crypto history is kind of like keeping your grandma’s cookie recipe; it becomes priceless with time.
