MEXCFTX Crisis: Ren Left With $160K In Funding To Survive
The crypto project Ren seems to be in a state of limbo for not having enough funds for its development following the FTX crisis. Alameda Research, FTX’s trading arm, was funding Ren’s development with $700,000 every quarter.
Alameda’s Acquisition Proves Costly
In order to ensure funds for long-term development, Alameda Research acquired Ren at the beginning of the year in collaboration with the previous leadership. Since then, the development team has received quarterly support from Alameda.
Everything seemed fine until, last week, the FTX Group, which Alameda falls under, filed for Chapter 11 bankruptcy proceedings.
Read More: FTX Exchange Files For Bankruptcy
The Ren team said on Friday that it only has funds available through the end of Q4. Earlier this week, a community call revealed that the project’s leftover funding was around $160,000.
As reported earlier on CoinGape, FTX financed Alameda Research, billions of dollars worth of customer assets to finance risky trades and even personal loans to the management, thus paving the way for its sudden downfall. And along with it, it took some of its associated projects like Solana and Ren as well.
Read More: Solana Loses $1 Billion In USDT to Ethereum Due To FTX Collapse
Ren’s Future Plans Following FTX Crisis
Ren is currently seeking financial support from other sources. The team disclosed on Friday that it was investigating potential prospects with community members.
The team is aiming to introduce Ren 2.0, the most recent version of the protocol, in addition to acquiring new funding. This updated version was introduced in August as a planned transition to an open-source, community-run initiative.
The team claims that it is critical to accelerate the switch to the newest version because Alameda is thought to be owning the intellectual property (IP) rights for the earlier version.
These alternatives will probably be placed to a vote for selection by the RenDAO community.
Market Reaction
With the ongoing turmoil in the crypto community, the REN token has lost over 30% of its value in the past 30 days. Upon the announcement, REN’s price slipped by 1.85% in the last 24 hours and is currently trading at $0.07, at the time of writing.
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