Stargate Cancels Token Relaunch Plan After Legal Threat from FTX
Cross-chain project Stargate Finance has scrapped its plans to relaunch the STG token following a legal threat from FTX.
Stargate Abandons Token Relaunch Amid FTX Threat
As reported by Coin68, Stargate Finance had announced in early February 2023 that it would fully relaunch the STG token due to concerns over the 10% of the total supply held by Alameda Research, a fund connected to the now-bankrupt FTX. Stargate feared that the FTX hack following its collapse posed a threat to the security of assets held by Alameda, including STG. To mitigate risks, Stargate planned to relaunch the token and move the 10% at risk to a separate wallet.
tldr; Stargate Foundation is recommending the DAO NOT re-issue the STG token. Story below
— Stargate (@StargateFinance) March 10, 2023
3/17/2022
Alameda snipes STG auction and purchases 100% of the auction for $25m
Details: Stargate Finance (STG) to Relaunch All Tokens Due to FTX Hack
Originally, Stargate planned to snapshot the STG balance on March 15, 2023, and then airdrop the new STG tokens to users accordingly. The Stargate DAO community voted in favor of this proposal.
However, on March 11, Stargate Foundation, the entity behind Stargate Finance, unexpectedly recommended canceling the token relaunch plan. Stargate Foundation revealed that FTX’s bankruptcy estate had reached out, claiming that any actions affecting FTX's assets would violate U.S. bankruptcy regulations. If Stargate proceeded with the token relaunch, the bankruptcy estate threatened legal action.
Subsequently, the Stargate DAO community conducted another vote and reached a consensus to abandon the token relaunch and continue using the old STG tokens.
Stargate DAO Votes to Cancel STG Token Relaunch
Several trading platforms, including Binance and Bitfinex, announced the cancellation of the STG token swap for token holders on their exchanges.
However, Coinbase had previously announced the delisting of the old STG to facilitate the token relaunch plan and officially halted STG trading on March 14. Coinbase has yet to provide an update on the future of STG.
As previously announced, we have disabled trading for Stargate V1 (STG). Your STG funds will remain accessible to you, and you will continue to have the ability to withdraw your funds at any time. https://t.co/zAnHWlwLmW
— Coinbase Assets 🛡️ (@CoinbaseAssets) March 14, 2023
The STG price has shown minimal reaction, primarily following the general trends in the cryptocurrency market.
4H Chart of STG/USDT on Binance as of 2:25 PM on March 15, 2023
