Alameda-backed Ren protocol shuts down, alerts customers to unwrap tokens

The Alameda-backed protocol, Ren, warned customers that its model 1.0 is winding down, and there’s a potential danger of shedding belongings.

The Alameda-backed protocol, Ren, introduced in a Twitter thread that their model 1.0 is winding down, and there’s a potential danger of lack of belongings. The crew said that after model 1.0 is retired, its holders might not be capable of recuperate belongings. 

Ren tweeted that Ren 1.0 shouldn’t be the top of the Ren protocol. After Ren’s model 1.0 shuts down, it is going to be changed by a brand new community-run Ren 2.0.

The builders informed customers to instantly burn the circulating tokens on Ethereum and declare them again to the unique chain as quickly as doable to guard themselves from potential danger. Based on some experiences, there are at present 1130 renBTC ($19.2 million) on Ethereum. 

The Ren crew claims Ren 2.0 will likely be a lot stronger and extra resilient than Ren 1.0. It should additionally allow novel multichain utility growth with EVM assist.

The Ren Protocol is an issuer of a wrapped Bitcoin asset referred to as renBTC funded by the notorious Alameda. Ren permits Bitcoin holders to lock their belongings and mint a wrapped model that can be utilized on Ethereum (ETH). Nevertheless, this mechanism has been placed on maintain for a while.

The crew announcement resulted in a misunderstanding, as some customers panicked and began promoting out their REN tokens as a substitute of unwrapping renBTC. In consequence, REN dropped from $0.93 earlier than the announcement to $0.82 on the lowest.

Alameda-backed Ren protocol shuts down, alerts users to unwrap tokens - 1
REN/USD 7-day chart. Supply:

An open protocol created to allow worth motion between blockchains might quickly be sunken into the ice of failed tasks. The first purpose for it’s the lack of funding after the monetary collapse of its mothership, Alameda Analysis, which acquired the Ren venture earlier this 12 months.

Alameda and the FTX alternate filed for Chapter 11 chapter safety within the early days of November. Ren stated its important funding supply could be eliminated, forcing it to wind down. Ren’s crew beforehand stated it was left with a runway that might end on the finish of the 12 months.

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