In the world of cryptocurrencies, tensions rise when Mantle chooses to halt token migration in response to a conversion attempt by the bankrupt FTX exchange. At the center of attention is the sum of 43 million dollars and the decisions made by participants of the Mantle DAO.
Mantle, a well-known decentralized autonomous organization (DAO), found itself in the midst of controversy when a community member started a discussion about preventing the FTX exchange and Alameda Research from converting their BitDAO (BIT) tokens worth 43 million dollars into Mantle (MNT) tokens during an ongoing migration process.
The matter has its roots in November 2021. At that time, BitDAO exchanged 100 million BIT tokens with Alameda in exchange for over 3.3 million FTX (FTT) tokens. This agreement stipulated a three-year commitment from both parties to hold the acquired tokens. Nevertheless, in 2022, in light of FTX’s troubles, BitDAO suspected Alameda of selling off tokens, leading to a sharp drop in BIT’s value. Former Alameda CEO, Caroline Ellison, vehemently denied any market interference.
A few months later, the BitDAO community put forth a proposal for unification of the BitDAO ecosystem, where BitDAO served as the governance body and Mantle was the product. On May 12, a community member with the pseudonym Cateatpeanut initiated a vote on unifying both under the Mantle banner. This would mean converting BIT tokens to MNT. On May 19, the proposal was accepted with overwhelming community support.
On August 17, the issue of BIT tokens held by Alameda became a hot topic for the Mantle community. Cateatpeanut argued that the BIT tokens belonging to the FTX group should not be automatically converted to MNT due to “various disqualifying factors.” According to him, there isn’t a “guaranteed right to migrate” for these tokens, leading to the initiation of a new proposal.
The proposal involved introducing a new MNT smart contract that would limit the automatic migration of tokens held by FTX. The community member also emphasized that the migration contract was paused until discussions and voting concluded.
In light of these events, many cryptocurrency market observers are pondering the future of collaboration between these organizations and the impact of such decisions on the overall market stability. One thing is certain, in the world of cryptocurrencies nothing is simple, and every decision can have far-reaching consequences.
