REN Value Tumbles as Ren Protocol Transfers Crypto Assets to FTX Debtor Wallet


The price of REN (REN) dropped significantly on Wednesday morning as Ren Protocol revealed it was shifting all of its assets to the FTX debtor’s wallet. Market sentiment was weak across the board as traders awaited economic data later in the day, and REN holders responded by selling off, causing the value to plunge from above $0.10 to $0.94. Trading volume spiked by 45%, according to CoinGecko.

Ren Protocol is a cross-chain bridge that FTX, through its subsidiary Alameda Research, purchased in February 2022. After the collapse of the Sam Bankman-Fried led crypto exchange last November, FTX’s assets were transferred to the debtors amidst ongoing bankruptcy proceedings. The Debtor has now asked Ren to send all crypto assets it holds to cold storage wallets under their control. Ren stated that the objective of the transfers is to safeguard cryptocurrencies from any potential shutdowns of FTX-related infrastructure and systems.

The platform also highlighted that all assets will be sent to segregated wallets, with Ren bridge protocol funds stored separately from other assets controlled by the Debtor. In December, Ren declared that its version 1.0 was still operational after the FTX/Alameda incident. However, the team warned that the network could go offline and urged holders of Ren assets to bridge them back to the native chains.

At the time of writing, REN/USD has recovered slightly but remains vulnerable to more losses. Buyers are attempting to defend the support zone near $0.98, while some REN holders are taking advantage of the dip to buy low, considering the promise of Ren v.2.0.

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