Ren Protocol, a DeFi platform, has granted permission to FTX, Alameda Research, and other affiliated companies who acquired the platform in 2022, to transfer all their crypto assets to FTX’s borrowing wallets. This move is said to be aimed at securing borrowers’ assets in the event of system or infrastructure shutdowns. Additionally, the bridge service will transfer the assets to a wallet specifically reserved for Ren’s assets, thus separating them from other borrowing wallets.
To further its mission of promoting integration in the decentralized finance (DeFi) space, Ren merged with Alameda Research in February 2022. CEO Taiyang Zhang stated that Alameda’s acquisition aimed to support their technologies and that Alameda’s resources were necessary to support them.
However, FTX and Alameda Research experienced one of the most significant crypto crashes of 2022, which led to unwanted challenges for the plans. When the situation with Alameda peaked in December 2022, Ren Protocol suggested that users withdraw their tokens from the Ren 1.0 network and send them back to the main chains. According to the company, the network was shut down due to events related to Alameda Research.
Strong response from the $Ren community
On the other hand, the crypto community had mixed reactions to the news of Ren’s asset transfer. Some community members claimed that Ren had been legitimised legally, while others were surprised and suspicious, and believed that this move could be an insider move to lower the value of the $Ren token.