Ren Protocol In The FTX Aftermath

A tweet from Ren Protocol on the 11th November 2022, shared an update with their community the current position of the protocol in light of the FTX implosion and subsequent bankruptcy filing. In my opinion, things unfortunately do not bode well for the team unless a solution can be found within a relatively short period of time.

A key point disclosed in the tweet was that Ren Labs has been receiving funding from Alameda on a quarterly basis to continue developing and maintaining their network over the past 12 months. The funding provided by Alameda sounds like it was meant for salaries, overheads for running the network and any other incremental expenses the team may incur in the course of their operations. The team has disclosed that they have funds to sustain the remainder of Q4 2022, beyond which funding would be completely stopped in light of current developments.

This effectively gives the team at Ren Labs 1.5 months to find alternative funding to continue on which in all honesty is not a lot of time to find alternative funding, go through the necessary due diligence, etc…

To make matters worst, Ren Labs has had no access to the company treasury or insight into plans around how the acquired $REN would be used. We can safely assume that this is no longer available to the team.

While it’s definitely not great to hear of teams that are directly impacted by the fall of FTX and Alameda, the situation facing the Ren Labs team is not an easy one. Maybe the will be able to pull a hat trick and secure the funding needed to continue on but the loss of the protocols treasury would be a big wall for the team to overcome.

You can read the complete tweet from the team here.

BadgerDAO has also released an announcement pulling its support for Ren Protocol and Ren Assets. The BadgerDAO announcement can be found here.

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