Has Sam Bankman-Fried-Led Alameda Research Dumped Its BIT Holdings? 

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After Alameda Research started liquidating its BIT holdings, BitDAO[BIT], the token of the Bybit contributor group, dropped by as much as 20% in less than two hours.

BitDAO is a decentralized autonomous organization that aims to level the playing field for everyone by constructing a decentralized token economy. This protocol is run by BIT token holders and is one of the largest and newest decentralized autonomous organizations focused on DeFi. Open finance and a decentralized tokenized economy are the goals of BitDAO.

Bybit CEO Ben Zhou, in an unexpected tweet, alerted the crypto industry to some BitDAO community concerns. He claimed that the sudden dump of its coin by the FTX-sister firm had left BitDAO worried.

Zhou added that the endeavor opposed the existing commitment to not sell their holdings for at least three years.

Consequences, Responses, and Contradictions

The CEO also added a BitDAO community update to his tweet. According to details from the discourse, the neighborhood had requested Alameda to provide evidence that it was not selling BIT.

Sam Bankman-Fried, the CEO of FTX, also runs Alameda Research, a company that was affected by the recent worries about the FTX token’s volatility as the BitDAO community inquired about Alameda’s commitment to holding BitDao (BIT) tokens. This came with a public promise to keep each other’s tokens for three years, or until Nov. 2, 2024.

A Lookonchain transaction on Etherscan revealed that Alameda had transferred nearly $1.6 million to the FTX exchange, requiring documentation. 

The BitDAO conversation stated, “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 how to deal with the $FTT in the BitDAO Treasury.”

In contrast, Alex Svanevik, CEO of Nansen, claimed that Mirana Ventures, a venture capitalist partner of Bybit and not Alameda, was responsible for the BIT withdrawals. However, the CEO of the crypto-insight company emphasized that withdrawals did not always imply a sale effort. As a result, it’s possible that neither Alameda nor Mirana took part in the BIT dive.

This FTX wallet has kept >100M BIT tokens since they were received.

But yesterday the balance fell to just below 100M BIT.https://t.co/4qeiC3kgPB pic.twitter.com/dQxLE4PHiw

— Alex Svanevik (@ASvanevik) November 8, 2022

Alameda Research’s CEO, Caroline Ellison, assured Zhou that there had been no misconduct on the part of the business and that she would provide proof of funds.

“Busy at the moment but that wasn’t us, will get you proof of funds when things calm down.”

Mending Bridges 

It’s interesting how BIT on-chain’s destiny has changed. Santiment said that BIT’s volume had increased by an astounding 170% in the previous day.

This suggested that the network had received more funding. As a result, an increase was anticipated to follow. That was also the case because, by the time of publication, BIT had recovered and was trading at $0.40. Additional information revealed that Alameda played a significant role in the token comeback.

Caroline appeared to have positively acknowledged the Zhou and BitDAO request, which resulted from Lookonchain’s revelation.

He said that, as of press time, the CEO of Alameda had transferred $182.4 million. It was quite likely that BitDAO would decide against selling the $3.3 million FTT that they currently had.