The implosion of the troubled cryptocurrency exchange FTX which happened about a week ago has left many digital asset firms and players in a state of confusion, keeping them at a point of little or no confidence in the ecosystem with several uncertainties about their future. Two of Alameda Research’s-backed Decentralized Finance (DeFi) projects, Maps.me and Oxygen have a huge percentage of their tokens locked in the exchange.
Maps.me is a mobile alternative to Google Maps which has about 100 million users on its platform while Oxygen is a DeFi prime brokerage service that is built on the Solana blockchain and powered by Serum’s on-chain infrastructure.
Both DeFi projects have confessed to being shocked at the turn of events at the FTX Derivative Exchange including its Chapter 11 bankruptcy proceedings. As per a published statement, 95% of their overall ecosystem token supply is in FTX due to the fact that the beleaguered exchange acted as a custodian for both projects.
“The MAPS.ME and Oxygen teams are shocked by events relating to FTX Group’s bankruptcy proceedings,” the statement outlined “Whilst FTX Group did not hold any equity [in the MAPS.ME or Oxygen businesses], it did hold a significant proportion of MAPS/Oxy tokens. It also acted as custodian for over 95% of the overall supply of our ecosystem tokens — both locked and unlocked.”
FTX Associate Alameda Research Invests in Maps.me And Oxygen
For now, the DeFi projects are exploring other options to keep their ecosystems afloat. Legal experts have been contacted to represent them in the ongoing bankruptcy proceedings. Before the whole saga involving FTX Derivative Exchange and its trading arm Alameda Research, the latter used to be a notable investor in Maps.me and Oxygen.
At the beginning of 2021, Alameda Research led a $50 million funding round for Maps.me. Again in February, the Sam Bankman-Fried-operated Alameda led an investment for Oxygen which yielded $40 million. These rounds promoted both entities’ confidence and trust in the exchange and led to their commitment to FTX as their custodian.
Presently, the FTX bankruptcy proceedings are still ongoing, and until it is finalized the fate of most of these connected firms is unknown. The only information accessible to them is public information made available.