Mantle Blocks FTX from Converting $43M in BIT Tokens

• Mantle DAO community member proposed restricting FTX from converting $43 million in BitDAO tokens to MNT tokens.
• Background of the discussion dates back to Nov. 2, 2021 when FTX and Alameda Research swapped BIT for FTT tokens.
• Cateatpeanut initiated a governance vote to merge both under the Mantle brand allowing BIT holders to convert their tokens into MNT.

Background of the Discussion

On Nov. 2, 2021, BitDAO swapped 100 million BIT with Alameda for over 3.3 million FTX tokens (FTT). The trade was accompanied by a mutual commitment to retain each other’s tokens until Nov. 2, 2024. However, following the FTX fallout in 2022, BitDAO suspected Alameda of offloading the tokens leading to a sharp decline in BIT’s value which was refuted by Caroline Ellison, former Alameda CEO.

Proposal To Merge Both Under The Mantle Brand

Months later, the BitDAO community proposed the integration of the BitDAO ecosystem with BitDAO serving as its governance arm and Mantle as its product. On May 12, Cateatpeanut initiated a governance vote to merge both under the Mantle brand allowing BIT holders to convert their tokens into MNT which was accepted on May 19 with significant support from the community.

The Issue Resurfaces

The issue resurfaced on Aug 17 when BIT held by Alameda became topic of debate among Mantle community members where Cateatpeanut contended that FTX Group’s BIT should not be automatically converted to MNT citing “various disqualifying factors” and launched proposal including request to create new smart contract capable of inhibiting automatic migration of FTX-owned token and halting on-chain migration contract pending discussion & vote.

Proposed Solution

Cateatpeanut proposed creating a new smart contract that would restrict FTX from converting $43 million worth of BIT tokens into MNT tokens amid ongoing token migration process and requested temporarily halting on-chain migration contract until further discussion & voting is done within Mantle DAO community members regarding this issue..

Conclusion

BitDAO initiated swapping 100 million BIT with Alameda for over 3.3 million FTX (FTT) while agreeing upon retaining each other’s token till Nov 2 2024 but following FTX fallout in 2022 suspicious arose regarding offloading of token resulting in depreciation of it’s price followed by proposal integrating both Ecosystems under mantle brand allowing conversion of bit into mnt which created debate regarding automatic migration against various disqualifying factors prompting proposal restricting ftx from converting 43m worth bit into mnt while halting on-chain migration till further discussion & voting is done

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Felix Schulze ist unser Krypto-Enthusiast und Chefredakteur im Team. Der studierte Wirtschaftsinformatiker hat sich schon früh, seit 2017, intensiv mit den technischen Grundlagen von Bitcoin und Blockchain-Anwendungen beschäftigt.

Er betreibt einen der populärsten deutschsprachigen Blogs zu diesen Themen und produziert einen viel gehörten Podcast für Krypto-Fans. Mit seinem enormen Wissensschatz hat Felix sich längst als einer der führenden Experten für die funktionellen und technologischen Details rund um Bitcoin etabliert. Er steuert spannende Hintergrundberichte und Technik-Analysen für unsere Leser bei.