Mantle Moves to Buy Back 100 Million BITs from FTX/Alameda in OTC Deal

Mantle, the blockchain project formerly known as BitDAO, has announced a significant move to buy back 100 million BITs from FTX/Alameda through Mirana Ventures. 

This transaction is being facilitated via an over-the-counter (OTC) deal. The details of this buyback are crucial to understanding the implications for both Mantle and the broader crypto ecosystem.

The FTX/ByBit BIT-FTT Swap

To provide context, in early November 2021, the crypto exchanges ByBit and FTX engaged in a platform token swap. 

ByBit exchanged 100 million BITs (Mantle’s native token) for 3.36 million FTT (FTX’s native token). 

Both parties agreed not to sell these tokens for a period of three years. With only two months remaining until the end of this lock-up period, it is likely that a sell-off of these tokens will occur.

Also Read: FTX Unstakes Over $1 Billion Worth Of Solana Amid Bankruptcy Proceedings

The Value Disparity

At the time of the original token swap, the exchange was considered equal. However, the current value gap between the two tokens is significant. 

The 100 million BITs held by FTX/Alameda are now worth $57.73 million, while the 3.36 million FTT are worth only $4.47 million. 

This disparity has created an opportunity for Mantle to buy back its tokens at a favorable price.

The Buyback Details

Mantle has recently transferred $38.73 million in stablecoins to FTX/Alameda and, in return, has received 105 million BITs from the FTX/Alameda address. 

The OTC price for this transaction is estimated to be $0.367 per BIT. It’s worth noting that the current market price of Mantle’s native token, MNT (formerly BIT), is $1.03. 

Additionally, Mantle currently holds 3.362 million FTTs, valued at approximately $9.18 million.

Also Read: FTX and Alameda Top Executives Slapped with 34.5 Years in Prison for Crypto Fraud

Potential Future Developments

Since Alameda Research started selling WLD on 8/8, it has transferred a total of 698,000 WLD ($1.13M) to Binance in 20 days.

Alameda Research obtained 25 million WLD by investing in Worldcoin. Alameda Research currently still holds 24.3 million WLD ($36.69M).

Judging from the previous FTX/Alameda asset liquidation and sales, these WLD will continue to be sold in batches for a considerable period of time.

The question now arises: Will FTX/Alameda’s clearing agencies also buy back the 3.362 million FTTs that were swapped three years ago? 

These tokens, currently held by Mantle, are valued at $9.18 million. The buyback of these FTTs could further solidify Mantle’s position and potentially provide additional liquidity to the project.