Written by 8:30 am Wealth Building Views: [tptn_views]

Stargate foundation advises DAO against reissuing STG tokens

The Stargate Foundation has deliberate its decentralized autonomous organization (DAO) against re-issuing the Stargate Finance (STG) native token attributable to concerns raised by FTX liquidators. Liquidators have expressed the idea that such a move would violate the automated stay and will have legal repercussions.

In March 2022, Alameda Research, a former cryptocurrency trading company, bought the complete STG auction for $25 million. However, in November of the identical yr, FTX declared bankruptcy, after which FTX and Alameda wallets were hacked for roughly $500 million. The liquidators eventually transferred all assets to latest portfolios.

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In light of those developments, the Stargate DAO has proposed to reissue the STG token to maneuver funds from a potentially compromised wallet to a safer one. However, the liquidators of FTX rejected this proposal.

The Stargate DAO maintains that the liquidators’ fears are unfounded and that re-issuing the STG token wouldn’t violate the automated residency. star Gate tweeted that “no interaction between foundations and liquidators indicates that they’ve understanding of the truth of smart contracts, how contracts work, or the way to interact with a contract to secure funds.”

Despite the efforts of exchanges, protocols and third parties to make sure the security of funds, the inspiration maintains its suggestion against re-issuing the STG token attributable to the opinion of FTX liquidators.

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