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BitDAO Community Targets Almeda For Allegedly Dumping BIT Tokens

9 Nov, 20223 min readOther
BitDAO Community Targets Almeda For Allegedly Dumping BIT Tokens

The BitDAO community is one of the most recognized decentralized autonomous organizations – known as DAOs. BitDAO carries out its operations by allocating funds to ensure the constant development of the decentralized finance (DeFi) sector.

BitDAO achieves this objective through unwavering support to the DeFi projects and partners. They’re also committed to providing funds to BitDAO contributors for special development projects. These projects may include community management initiatives, a long-term BitDAO foundation, or a bespoke governance module.

The decisions to make every slated project work comes from the BitDAO voting system and proposal. As a result, all community members can benefit from the initiatives the company supports.

Meanwhile, Alameda Research, a leading trading company, has come under the investigation of BitDAO. This occurrence is regarding the BIT tokens the company believes Alameda dumped recently. BitDAO is now requesting the BIT holding commitment of the trading company.

Dealings Between BitDAO And Alameda Research

Before now, a transaction went on between BitDAO and Alameda Research. This dealing occurred on November 2, 2021. The news was that Alameda received about 100 million BIT tokens from BitDAO to get 3,362,315 FTT tokens in exchange.

Based on both parties’ agreement, their tokens will be left in the custody of a public commitment. They are not expected to retrieve these tokens until after three years, on November 2, 2024.

Over time, there was a drop in the value of the BIT token. The effect was a function of growing speculations and uncertainties in the crypto market. BitDAO quickly noticed the rapid decline in the price of the BIT token.

The company believes the dipping prices of the token are a result of the Alameda Research dump of the BIT token. Therefore, this is a breach of commitment, per BitDAO’s claim.

Reasons For Suspicion

In the meantime, DAO wants to be proven wrong based on its suspicion. To this effect, the company demands to verify Alameda’s side of the BIT token commitment. The DAO has already revealed its token address and holdings of the FTT tokens. The address showed 3,362,315 FTT tokens, equal to the initial holding after the commitment.

The token demands that Alameda transfers the 100 million BIT tokens to a non-exchange address. The tokens will remain in the address until the slated date of the commitment. After that, the company leaves Alameda with a deadline of 24 hours to prove its innocence to the claim.

The community is not accusing Alameda Research of breaking the commitment just yet, says Ben Zhou. He added that all it wants is proof that the initial tokens they received are still intact. Ben Zhou is the co-founder of Bybit, a digital currency exchange.

The CEO at Alameda, Caroline Ellison, made a defensive statement, citing that the company is currently busy. However, she added that the firm would get the proof DAO demands when things are more settled.

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