Ren Protocol has announced that all of its cryptocurrencies will be transferred to the cold wallets of FTX’s debtors. Does this event mark the end of the bridge
Ren Protocol’s cryptocurrencies will be transferred to FTX
The Ren Protocol bridge announced on Twitter that in accordance with the rights granted by Alameda Research’s investment in the project, all of its crypto-currencies will be transferred to FTX debtors in charge of managing the bankruptcy process:
“We wish to inform the Ren community that FTX […], Alameda Research […] and some of their affiliates […] who had purchased the shares and all assets of the Ren Protocol entities, have authorized and directed the Ren Protocol entities to transfer all crypto-assets to the FTX debtors’ cold wallets for safekeeping, in anticipation of possible infrastructure closures. “
Note, however, that the release states that said assets will be transferred to wallets separate from other FTX debtors’ wallets.
A predictable situation?
In fact, the situation was more or less foreseeable, given the fact that as soon as FTX collapsed, Ren Protocol had announced that it would accelerate the development of Ren 2.0, a fully community-managed version of the bridge, in order to emancipate itself from Alameda Research.
In December, the project teams had even strongly advised holders of Ren assets, such as renBTC for example, to return them to their original blockchain so as not to risk losing them :
1) Important notice ⚠️
As announced previously, the Ren 1.0 network is shutting down due to the events surrounding Alameda
As compatibility between Ren 1.0 and 2.0 cannot be guaranteed, holders of Ren assets should bridge back to native chains ASAP, or risk losing them! https://t.co/20vpGBc8W0
– Ren (@renprotocol) December 7, 2022
This seems to be the end of the protocol, whose bridge assets are normally no longer collateralized. Note that the total locked value (TVL) of Ren Protocol has been falling since last fall, from 1.7 billion to just under 31 million dollars according to DefiLlama data:
TVL from Ren Protocol
As for the REN token, it is down 6.4% in 24 hours as of this writing. Since its high in February 2021 at $1.84, the asset has lost nearly 95% of its value.
