One of the biggest decentralized autonomous organizations, BitDAO's native cryptocurrency, BIT, fell 20% as the DAO entered the ongoing FTX-Alameda saga.
So far, BitDAO (BIT) has accused Sam Bankman Fried's venture capital firm, Alameda Research, of breaking a 2021 agreement by selling 100 million BIT tokens, which made the price of BIT tumble.
The original deal between BitDAO and Alameda was that the latter held the FTX tokens they acquired in November 2021 token for at least three years.
According to Ben Zhao in a tweet, the abrupt BIT token dump brought on by Alameda's alleged dump and breach of the three-year mutual no-sale public pledge is being questioned by the Bitdao community. Zhao adds that nothing has been proven, but the Bitdao community wants to verify an Alameda proof of fund.
The conflict between FTX and Alameda started last week when CoinDesk revealed that Alameda had significant holdings of FTT coins on its balance sheet. In response, Binance took action to sell its FTT holdings, which caused a panic in the market. In less than three days, FTT has dropped prices by 40% to $15.
The BitDAO community also threatened to take action—possibly by selling its 3,362,315 FTT holdings if Alameda fails to explain within 24 hours.
According to the proposal submitted by BitDAO, the BitDAO community will determine (by vote or other emergency action) how to handle the FTT in the BitDAO Treasury if their request is not granted and if appropriate alternative proof or a response is not provided.
Caroline Ellison, CEO of Alameda Research, has emphasized that "that wasn't us" and committed to presenting the proof of money as soon as things have calmed down.
According to recent reports, Alameda has transferred over 100 million BIT tokens from an FTX hot wallet to an Alameda address in response to the DAO community's request for proof that it still holds its BIT tokens.
At the time of writing, BIT and FTT both saw a significant 20% decline in price. FTT plunged from $22.12 to the $15.36 zone where it now sits, and BIT declined from $0.40 to $0.33
The cryptocurrency's price has begun to normalize, and it has almost recovered all of its losses over the last day.
At the time of publication, BIT trades at $0.38 after dropping from $0.40 over the last day.
The RSI on BIT's daily chart still shows slightly oversold conditions and hints at a likelihood of the bulls gaining more control over the market. The MACD, on the other hand, appears unclear but hints at the bears still being slightly in control of the market.
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