FTX $43M BIT Token Migration Sparks Debate in Mantle Community
• A Mantle community member has proposed the restriction on an automatic migration of FTX BIT tokens to Mantle (MNT).
• BitDAO and Alameda agreed to hold each other’s assets for three years which was due on Nov 2, 2024.
• FTX-linked Farmington State Bank has been sanctioned by the Federal Reserve Board and the Washington State Department of Financial Institutions.
Proposed Auto Migration of FTX $43 Million BIT Tokens
A Mantle community member has proposed the restriction on an automatic migration of FTX BIT tokens to Mantle (MNT) citing disqualifying factors. The debate sparked by members of the Mantle Decentralized Autonomous Organization (DAO) on the ongoing token migration of certain companies including the FTX exchange has gone mainstream as the platform seeks to unify ecosystems. Recently, BitDAO network proposed a merger with Mantle which would see both organizations operate under Mantle. While all moves have received positive feedback from the community, user of $43 million BIT tokens held by FTX continues to pose a setback.
FTX-BitDAO Network Arrangement
In November 2021, BitDAO entered into an arrangement with Alameda, a deal that saw BitDAO swap 100 million BIT tokens for about 3.3 million FTT, FTX utility tokens. As part of the deal, both companies agreed to hold each other’s assets for three years which was to be due on Nov 2, 2024. The collapse of FTX last year had a ripple effect on BIT’s price as a result of their arrangement following speculations of FTX selling tokens to raise funds. With proposal to unify BitDAO and Mantle, all BIT holders will automatically have their tokens converted to MNT prompting some members proposing suspension until final vote is casted regarding FTX-held token conversion process.
Temporary Fix Proposed By Members
The Mantle community backed by Bybit suggests not converting FTX/Alameda’s BIT tokens to new MNT token while process is suspended until final vote is taken regarding its migration contract status . In 2021, Alameda swapped 100M BITs for 362,315 FTT currently holding 98.86M BIT valued at $42M On-chain migration contract has been temporarily suspended until final vote is taken regarding it status while some members propose new separate contract that will restrict asset held by Alameda Research .
FTX-Linked Bank Sanctioned
FTX-linked Farmington State Bank has been sanctioned by Federal Reserve Bank after it improperly delved into digital assets without prior authorization. According action enforcement , one branch lender supposed wind down activities after adopted pro crypto business plan in 2022 now barred Federal Reserve Board and Washington State Department Financial Institutions certain banking activities making dividends or capital distribution related cryptocurrency or virtual currency activities involving customers located outside state Washington .
Conclusion
Until further investigation , conversion process overlapping between both platforms remain at standstill with no immediate solution sight . From possible sanctions imposed against bank linked with ftx exchange implications still uncertain but need careful consideration due potential risks associated with transfer large sums digital assets .
