Ren (REN), acquired by investment firm Alameda Research and struggling with financing problems for a while, decided to issue 180 million new tokens to finance the upgrade. This decision to increase the supply is expected to cause selling pressure on the price.
According to the results of a vote by the Ren DAO, approximately approx. 11 million dollars worth 180 million new REN will be printed. Currently, according to CoinGecko data 1 billion REN supply is in circulation. With the new tokens to be issued, the supply will increase to 1 billion 180 million. This situation is already creating selling pressure and seems to have negatively affected the price.
REN was acquired by Alameda in February 2021 and last month FTX together with in Alameda After its bankruptcy, the Ren team lost their due due to financing problems. Color 1.0 announced that it would cease the activities of the project.
As a result of the voting submitted to the Rhine DAO, the voters 80.78% the majority preferred to print 200 million tokens. 1.08While a small portion of 150 million tokens voted in favor, 2.05%100 million tokens and 10.97%‘ voted in favor of 50 million token issuance. Taking the weighted average of these results, the administration decided to produce 180 million Ren tokens. agreed it happened.
After the confirmation of this decision on the increase in supply, a notable decrease in the price of the REN was observed. CoinGecko According to data, in the past 7 days 20% depreciating REN at the time of writing from $0.058 traded in the markets.