Oxygen (OXY) and Maps.me (MAPS), two Solana ecosystem projects heavily backed by Alameda Research, said that over 95% of their overall token supplies are held on FTX.
They said they want to protect their users and have “retained legal advisors to assist.”
Alameda put about $90 million in both Oxygen and Maps.me last year.
FTX held millions in OXY and MAPS.
OXY is down 99.5% from its all-time high, MAPS is down 97%.
Solana ecosystem projects Oxygen (OXY) and Maps.me (MAPS) revealed on Tuesday that they held over 95% of their overall token supplies on now-defunct exchange FTX.
In a blog post, the team behind Oxygen also said that while FTX had no equity investments in the companies, the bankrupt exchange held a “significant proportion” of OXY and MAPS. This is evident from the leaked FTX balance sheet, which shows that the exchange held millions of dollars in OXY, MAPS, and other illiquid tokens.
Oxygen said that it’s considering all options for how to protect its users and has “retained legal advisors to assist with this ongoing process.”
Oxygen and Maps.me were heavily backed by Alameda Research, Sam Bankman-Fried’s crypto trading firm that supposedly received customer funds from FTX to place risky bets. The firm led a $50 million investment round in Maps.me in January 2021. The project was supposed to be a decentralized competitor to Google Maps.
A month later it led another round of investment but this time in decentralized broker Oxygen. The firm invested $40 million with the hopes of integrating the project into Maps.me.
Now both tokens are essentially worthless. OXY is down 99.5% from its all-time high of $4.16 and currently trades at $0.019, according to data from CoinGecko. MAPS is trading at $0.06, 97% down from its highs of $2.
Alameda, which had a close relationship with FTX, is also said to have been frontrunning FTX token listings, according to a report by The Wall Street Journal. FTX would inform Alameda of upcoming new listings, which could’ve included OXY and MAPS. This was so it could amass huge amounts of tokens and sell them after the exchange listed them.
Both FTX and Alameda, together with FTX US and other 130 FTX Group companies, filed for Chapter 11 bankruptcy last Friday. FTX has a $10 billion dollar hole in its balance sheet.
On the Flipside
It’s unclear what will happen with the OXY and MAPS tokens stuck on FTX. For what it’s worth, both of them have become very illiquid over time.
Many speculate that Oxygen and Maps.me were de facto FTX projects primarily used to milk investors.
Why You Should Care
Multiple crypto companies, investors, and funds have recently revealed having been affected by the blowup of FTX. The full extent of the bankrupt exchange’s contagion is still unknown. Oxygen and Maps.me held almost all of their token supply on FTX. This also suggests that there may be other projects that had similar token custody strategies.