Developers Of This Altcoin Say We Are “Closing”, Warn Users of Risk of Loss!

funded by Alameda and renBTC called wrapped Bitcoin Ren Protocol, the issuer of the asset your altcoin warned its users of the potential risk of loss after its shutdown.

After Alameda Collapsed, renBTC Altcoin Decided to Shut Down

The Ren team said that this tokenized Bitcoin, called Ren 1.0, will be shut down soon. The primary reason for the shutdown of Ren 1.0 is cited as a lack of funding after Alameda Research’s financial collapse.

Ren allows Bitcoin holders to lock their holdings and mint a wrapped version that can be used on Ethereum, but this mechanism has been put on hold for some time. After version 1.0 of Ren is shut down, it will be replaced by a new community-run Ren 2.0.

However, the two versions may not be compatible. The project told users to immediately burn tokens circulating in Ethereum and claim them back on the original chain as soon as possible to protect themselves from potential risks.

“As compatibility between Ren 1.0 and 2.0 cannot be guaranteed, owners of Ren assets should return to local chains as soon as possible or risk losing them,” the team said.

According to the data, there are currently 1,130 renBTC ($19.2 million) on Ethereum. As stated by the team, there is a possibility that owners will not be able to get their assets back after version 1.0 is retired.

Earlier this year, Alameda Research, a trading firm closely affiliated with FTX, bought the Rhine project and funded its development on a quarterly basis.

After Alameda and the FTX exchange filed for Chapter 11 bankruptcy protection, Ren said its main source of funding would be removed and forced into closure.

*Not investment advice.