The bankruptcy of FTX has plunged linked altcoins Solana (SOL) and FTX Token (FTT) into the abyss. Now, the effects of the crash are spreading across the altcoin market.
Thousands of dollars are leaving this altcoin project with the FTX collapse
Ethereum-based cross-chain protocol Ren (REN) experienced $160,000 funding outflow after the FTX crisis. The altcoin project is in danger of not having enough resources in the wake of the crisis. The new data shows that Ren doesn’t have enough funds to develop after what happened at FTX. Alameda, FTX’s sister company, was funding Ren’s development with $700,000 every three months. When this resource goes bankrupt, the altcoin project suffers in terms of financing.
Alameda bankruptcy undermines Ren’s financial resources
Alameda Research had acquired Ren earlier in the year to provide financing for long-term development. Since then, it has been funding the development team quarterly. Before the FTX Group, of which Alameda is a part, filed for bankruptcy last week, all was well. The Ren team announced on Friday that they have enough funds until the end of the 4th quarter. Earlier this week, new reports made it clear that the project’s current funding is around $160,000.
FTX was the main source of funding for Alameda Research. It used billions of dollars’ worth of client funds to finance risky transactions. He even provided personal loans to his managers. All this complicated credit relationship also resulted in his sudden death. Now, he is under fire for his related projects including Solana and Ren.
Ren’s future plans after the FTX collapse
The Ren team is currently seeking additional funding sources. They revealed on Friday that they were talking to community members about potential collaborations. In addition to raising new funding, the team hopes to introduce Ren 2.0, the latest update to the protocol. In August, a revised version was released as part of an informed transition to an open-source, community-driven initiative. The Ren team argues that accelerating the transition to the newest version is imperative, as Alameda is considered to own the intellectual property (IP) rights for the older version. These options will likely be put to the RenDAO community’s election vote.
Impact of reports on REN price
The REN price has lost more than 30% of its value in the past 30 days due to the ongoing unrest among cryptocurrency investors. Following the announcement, the REN price dropped 1.85% the next day. It is currently recovering slightly and trading at $0.07697. cryptocoin.com We have covered all the details about Ren and its features in this article.
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