Mar 15, 2023
“Stargate DAO Rejects Reissuing STG Token”
Stargate Foundation, a decentralized autonomous organization (DAO) has recently advised against reissuing its native Stargate Finance (STG) token due to concerns raised by FTX liquidators. This news has been met with mixed reactions from the crypto community, as some are in favor of the decision while others are in opposition.
The story began in March 2022, when Alameda Research, a former cryptocurrency trading firm, purchased the entire STG auction for $25 million. Unfortunately, in November of the same year, FTX declared bankruptcy, and its wallets were hacked for roughly $500 million. The liquidators transferred all assets to new wallets, and the STG token was left in the potentially compromised wallet.
In light of this, the Stargate DAO proposed reissuing the STG token to move the funds from the potentially compromised wallet to a safer one. However, the FTX liquidators have rejected this proposal, citing that it would violate the automatic stay and could result in legal repercussions.
Stargate DAO maintains that the liquidators’ concerns are unfounded and that reissuing the STG token would not violate the automatic stay. They have tweeted that “nothing in any interaction the foundation has had with the liquidators indicates that they have a firm grasp of the reality of the smart contracts, how the contracts work, or how they will interact with the contract to secure the funds.”
Despite the efforts of exchanges, protocols and external parties to ensure the security of funds, the foundation is standing by its recommendation against reissuing the STG token due to the opinion of FTX liquidators.
The implications of this decision are far-reaching, as the security of funds is a major concern in the crypto space. Moreover, the decision could have a major impact on the NFT marketing and promotion industry, as the STG token is a key asset for NFT marketers.
NFTs have been gaining traction in the web3 space for the past few years, and the NFT marketing and promotion industry has been growing rapidly. NFT marketers use the STG token to promote and market their NFTs on social media platforms such as Twitter, and the decision to not reissue the token could have a negative impact on the industry.
NFT marketers are now looking for alternative methods to promote and market their NFTs, such as using web3 agencies, which specialize in NFT promotion and marketing. These agencies have the expertise to help NFT marketers reach their target audience and promote their NFTs effectively.
The uncertainty surrounding the STG token is a cause of concern for the NFT marketing and promotion industry, as the token is an essential asset for NFT marketers. It remains to be seen how the industry will adjust to the new situation, and how the Stargate Foundation will respond to the FTX liquidators’ concerns.
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