REN price fell sharply on FTX news from Ren Protocol

Home » REN price fell sharply on FTX news from Ren Protocol

  • REN price fell to lows of $0.94 after Ren Protocol announced the transfer of all crypto assets to FTX debtor wallet.
  • Ren says all assets will be sent to cold storage wallets belonging to the debtor.
  • FTX/Alameda acquired Ren, a cross chain bridge protocol, in February 2022.

The price of REN (REN) fell sharply on Wednesday morning after Ren Protocol announced it would be transferring all of its assets to the FTX debtor’s wallet.

As the broader market traded cautiously amid wider anticipation of economic data later in the day, REN holders were spooked into heavy selling. REN price nosedived from above $0.10 to lows of $0.94, shedding nearly 12% of its value against the US dollar.

The sharp declines were accompanied by huge sellside volume, with data from CoinGecko showing daily trading volume had spiked by more than 45%.

REN price nosedives on major FTX-related Ren announcement

Ren Protocol is a cross-chain bridge that FTX, through its subsidiary Alameda Research, acquired in February 2022. Following the collapse of the Sam Bankman-Fried led crypto exchange last November, the platform’s assets moved to the debtors’ amid the ongoing bankruptcy proceedings.

Now the Ren Protocol team says the FTX “Debtor” has asked them to transfer all crypto assets it holds to cold storage wallets controlled by the debtors. The platform noted that the transfers are meant to help secure the cryptocurrencies ahead of any possible shutdowns of infrastructure and systems related to FTX.

Ren will send the cryptocurrency to segregated wallets, with assets moved from bridge protocol stored separately from other assets secured by the Debtor.

In December, Ren announced that its v.1.0 remained operational after the FTX/Alameda debacle. However, the team recognised the network could go offline and urged holders of Ren assets to bridge back to the native chains.

While the REN/USD pair has clawed back a little, the token remains vulnerable to further downside. However, buyers are battling to keep the support zone near $0.98. Some REN holders are also looking at the dip as an opportunity to buy low, pointing to the promise of Ren v.2.0.

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