Mantle Stops Token Migration Due to FTX

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The BitDAO and L2 project Mantle Network announced in May a merger to create a single ecosystem under the BitDAO brand.

Part of the process includes a conversion of BitDAO (BIT) tokens to MNT tokens.

Cateatpeanut, a user from the BitDAO community, suggested that this conversion should be canceled due to “disqualifying factors” – namely the issue surrounding the FTX Group’s holdings of BIT tokens. The majority of commentators have supported this suggestion.

However, one user argued that amid the regulatory challenges of Coinbase and Binance, the exchange should be allowed to restart as this would be a “safe haven” for traders and could lead to the listing of MNT, which would be beneficial for the project.

The discussion regarding this proposal is still ongoing. In November 2021, BitDAO exchanged 100 million BIT with Alameda Research for 362,315 FTT tokens from FTX.

Meanwhile, the company now owns 98.86M BIT worth ~$42M. Following issues with the exchange and its affiliate, the collapse of the price of BIT led to suspicions of a dump. At the time CEO Caroline Ellison denied Alameda Research’s involvement.

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