Chip merger breaking the deadlock? BIT plunges 20%, Bybit CEO: Someone is selling off, Alameda denies

The platform token FTT of the exchange FTX plummeted more than 20% this morning, with the price dropping below $16 at one point. At the same time, the BitDAO token BIT supported by the exchange Bybit also experienced a rapid decline of over 20% in a short period of time.

Both tokens saw significant drops in value at almost the same time, prompting speculation about the proposal made by Alameda last year to exchange approximately 3.36 million FTT for about $190 million for 1 billion BIT, roughly $200 million, with each accounting for about 1% of the total circulation, and committing not to sell each other's tokens for 3 years.

Event Recap: Chip Alliance? 1% FTT for 1% BIT, Alameda proposed token exchange with BitDAO

Advertisement - Please scroll down for more content

Regarding the drop in BIT, the community is speculating whether it is the result of Alameda's actions, while Ben Zhou, CEO of Bybit, responded in the BitDAO Chinese community:

"Someone promised not to dump 1 billion bit, maybe we were fooled."

These words seem to suggest that the impact of the decline may have come from the initial sale of 1 billion BIT exchanged with Alameda in the market.

Was there a real sale by both parties?

The address provided by Alameda initially here currently has no BIT tokens, as the 100 million BIT tokens were later transferred to the FTX exchange address, which has consistently held over 100 million BIT tokens, but now stands at 98.57 million tokens. Update as of 11/8 19:00: Alameda has transferred the 100 million BIT tokens back to the original address.

Update as of 11/8 19:00: Tokens have gradually been transferred back to the Alameda address.

According to CoinCarp's data, there are still 4.64 million BIT tokens in other Alameda wallets.

Additionally, the 3.36 million FTX tokens received by BitDAO are still securely held in the original address.

Latest Community Proposal Discussions

Due to recent volatility and news, the BitDAO community has initiated a proposal discussion suggesting the transfer of 100 million BIT tokens to an on-chain non-exchange address for community verification. If this cannot be achieved, a vote will be conducted to decide how to manage the received 3.36 million FTT tokens.

Amid community panic, Alameda CEO Caroline promptly responded, stating that they have not sold any tokens and will provide evidence later on.