Cross-chain bridging service Ren Protocol has revealed that FTX, Alameda Research, and other entities that acquired it in 2022 have given the company permission to transfer all of its cryptocurrency assets to the portfolios of FTX creditors.
Ren claims that by taking this measure, debtors can protect their assets in case their infrastructure and systems end up shutting down. The bridge provider also stated that the assets will be transferred to a separate wallet for Ren assets in order to keep the funds separate from other debtor wallets.
— Ren (@renprotocol) April 12, 2023
Ren is a service that allowed users to move tokens like bitcoin (BTC) and ether (ETH) between blockchain networks and quickly grew to become one of the most popular decentralized finance (DeFi) protocols during the 2021-2022 bull run. .
The Ren Protocol wants to protect you from system crashes
The acquisition of Ren Protocol by Alameda Research in February 2022 is intended to accelerate the decentralization of the platform and drive interoperability within the DeFi market. The Alameda acquisition was intended to provide Ren Protocol with additional support to achieve its goals.
“Since then, Alameda has been funding the development team on a quarterly basis,” the bridge protocol said in a statement in late 2022.
However, last year, the FTX exchange and its sister company, Alameda Research, witnessed one of the most serious collapses in the history of cryptocurrencies, which affected the Ren 1.0 network and forced its shutdown. Ren Protocol urged its users to remove their tokens from their wrapping and return them to native chains in December.
After the FTX/Alameda scandal broke, the Ren 1.0 network was declared to be “extinguished” to preserve the integrity of the project and the safety of its usersin order to launch the Ren 2.0 network, fully controlled by the community, as soon as possible.
However, the Ren Protocol move has sparked various comments in the cryptocurrency community, with some Twitter users assuming the transfer is an insider attempt to short the REN token, while others expressed disappointment.
The native Ren Protocol token, REN, has fallen as much as 8.5% in the past day, and most of the losses occurred after the company tweeted the decision. At press time, it was trading at $0.09781 and had a 24-hour trading volume of $40,098,736.