Ren claims that the move will ensure the safety of customer funds in case of a potential shutdown.
Ren Protocol, an open protocol that enables the movement of value between blockchains, has revealed plans to move all of its cryptocurrency assets to the "cold storage wallets" owned by FTX debtors.
According to the announcement shared on Twitter on April 12th, the company has received this instruction from FTX, Alameda Research, and other affiliates who acquired Ren Protocol in 2022.
Did you know?
Subscribe - We publish new crypto explainer videos every week!
How to Avoid Rug Pulls in Crypto? (5 Ways Explained)
By transferring its assets to FTX debtors' wallets, Ren Protocol allegedly aims to help debtors secure their assets in case the platform's systems and infrastructure experience a potential shutdown.
Ren Protocol pointed out that it would allocate the assets to a separate wallet specially created for Ren's crypto assets.
The cryptocurrency assets will be transferred to distinct segregated wallets cold storage wallets designated for these assets transferred by Ren, separate from the other Debror cold storage wallets.
Ren Protocol joined forces with Alameda Research on February 2nd, 2022, to obtain more resources and further its goal of fostering interoperability within the decentralized finance (DeFi) ecosystem.
At that time, Ren's CEO, Taiyang Zhang, claimed that the acquisition by Alameda Research would fast-track the decentralization of its technologies and offer support from Alameda's resources.
However, the intended plan did not progress as anticipated, with FTX and its sibling company, Alameda Research, facing one of the most tremendous collapses in cryptocurrency history in 2022.
Many crypto community members on Twitter were shocked and confused about the news. Several crypto enthusiasts asked the protocol, "what's that supposed to mean?"
The news also heavily impacted the price of REN. According to BitDegree data, the price of REN dropped by over 8% in the last 24 hours, with a token currently retailing for $0.0988.
