Wrapped Tokens Issued by FTX or Alameda Slumps, No Longer Redeemable

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Following the filed Chapter 11 bankruptcy from FTX, the wrapped tokens issued by the crypto speech oregon its sister trading store Alameda Research person present undergone a terms decline.

According to information from Coingecko, Wrapped bitcoin connected Sollet is down by implicit 60% successful the past 24 hours, falling from its autochthonal bitcoin's existent $16,811. In contrast, Wrapped ETH connected Sollet is besides down but by lone astir 8% to $1,209 implicit the aforesaid 24 hours clip frame. Native ETH is trading astatine $1,261, astatine the clip of writing.

Notably, for some wrapped tokens, soETH and soBTC, Coingecko is displaying a informing announcement connected its website that reads: "soBTC tokens are wrapped BTC tokens issued by FTX oregon Alameda. Both these entities person filed for Chapter 11 bankruptcy, and the BTC tokens are nary longer redeemable."

Wrapping tokens, specified arsenic the 1 for Bitcoin oregon Ethereum, connected Solana marque these assets disposable for usage connected the Solana blockchain truthful users tin clasp oregon commercialized them alternatively of the existent Bitcoin oregon Ethereum.

Founder of Roktiapp, an unfastened root portfolio tracking app, commented connected these wrapped assets saying since astir Solana wrapped assets were custodied by the present collapsed crypto speech FTX and Alameda probe means the wrapped tokens are nary longer redeemable and volition astir apt spell to 0.

Reactions concerning the wrapped assets were conscionable individuals trying to pass others that the wrapped tokens were not existent tokens. A tweep with the Pseudonymous meow tweeted,

“The worst lawsuit scenarios for soBTC came existent - thing is backing it, rogue devs person entree to FTX accounts & nary 1 takes immoderate responsibility.”

So far, quality concerning the illness of FTX keeps getting worse.

Yesterday, Blockchain.News reported FTX is soon to person its European License suspended by Cyprus regulators. Meanwhile, connected Nov 9, CySEC requested FTX Europe to “suspend its operations and to proceed instantly with a fig of actions for the extortion of the investors.”

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