Alameda Satisfied BitDAO’s Proof of Funds Request Amid Suspects of BIT Tokens Dumping

BitDAO's fears stem from speculation that Alameda is liquidating its token holdings to defend FTX's native cryptocurrency.

Alameda Research has fulfilled BitDAO’s request for proof of funds after after the price of both native token both BIT and FTT suddenly dropped 20% on Tuesday.

On November 2, 2021, BitDAO swapped 100M $BIT with Alameda for 3.362.315 $FTT and agreed not to sell either token for the next three years. After the price of BIT and FTT crashed 20% on Tuesday and around 40% in 4 days – with BIT falling from $0.40 to $0.33 and FTT plummeting from $22.12 to $15.36 – the community behind the decentralized autonomous organization (DAO) filed a proposal on Tuesday asking the FTX CEO Sam Bankman-Fried venture capital firm to transfer within 24 hours “100M $BIT tokens to an on-chain address for the BitDAO community” in order to provide evidences that Alameda haven’t breached the public commitment not to sell each other’s tokens until November 2024.

“In light of recent volatility and news, we propose that we allow the community to monitor and verify that the parties to BIP-4 are following their commitment to the community,” asked the DAO. “If this request is not fulfilled, and if sufficient alternative proof or response is not provided, it will be up to the BitDAO community to decide (vote, or any other emergency action) how to deal with the $FTT in the BitDAO Treasury,” the proposal reads.

“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,” explained on Twitter BitDAO’s founder and CEO Ben Zhou.

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. https://t.co/YassKhcdPt

— Ben Zhou (@benbybit) November 8, 2022

Finally today, BitDAO confirmed that Alameda Research has transferred 100m $BIT to the on-chain address BitDAO requested and thanked the company “for its prompt response”.

1/2 Community update on BIP-4: the 100M $BIT has been transferred to the original BIP-4 swap wallet https://t.co/72FBhGieKY.

Thanks @AlamedaResearch @carolinecapital for the prompt response.

— BitDAO (@BitDAO_Official) November 8, 2022

BitDAO has also introduced a proposal that will allow the community to monitor and verify that the FTT-BIT swap commitments are being followed.