The fall of FTX has created a major domino effect along the crypto industry. Many companies have already gone out of business and others are preparing for it. Analysts believe that in the next few months, the impact of this collapse will still be present. Ren Protocol is an open, community-driven protocol that enables the transfer of values between blockchains. Since November, he has had a Damocles sword above his head. That of the closure of its activities. Decryption.
An imminent shutdown and a loss of $15 million in cryptos?
Ren Protocol might be closed in the next few days or weeks. However, the team does not know exactly when this will happen. This is because the bitcoin-focused project was acquired in February 2021 by the now bankrupt trading firm Alameda Research. It appears that Alameda controlled the infrastructure behind the network. This, separately from its node operators. Unfortunately, the team does not have all the technical information on this.
You should know that there are still 15 million dollars stored on Ren Protocol. This amount may be blocked when the network stops. This is why the actors of the project warn the crypto community on the risks now incurred.
“We don’t know exactly when the closure will occur. It depends on the closure of the infrastructure that we do not control. It could be in the next few days, or in a week or two. We don’t have the information, but we’re trying to find out what’s going on.”said Maximilian Roszko, ecosystem advocate for Ren Protocol, in the project’s Discord channel.
The network supports packaged cryptos from other blockchains. Chief among them is renBTC, a tokenized version of bitcoin on the Ethereum blockchain. If Ren Protocol goes down, these cryptos will not necessarily have any value and cannot be returned to their original blockchains to unlock the collateral.
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