The Decentralized Oxygen Protocol has locked 95% of its OXY tokens in FTX.
The Oxygen protocol, a decentralized prime brokerage network, revealed that FTX held over 95% of its MAPS/OXY tokens.
On November 15, the team issued a statement stating that the defunct exchange had locked and unlocked tokens.
The incident is likely to enrage investors and the crypto community in general, who will question its claims of decentralization.
The team said it was “shocked” by the events surrounding FTX Group’s bankruptcy proceedings. It, like other creditors, must await further developments and rely on publicly available information.
It is an issue for a decentralized network to rely on a centralized exchange to act as a custodian for nearly all of its tokens. The demise of FTX has raised new concerns about such options, which will only encourage more investors to shift to DEXs.
Oxygen Protocol’s team did state that they were considering all options for protecting the network’s ecosystem.
This includes hiring legal counsel to help with the process. The news has had little impact on the MAPS and OXY tokens.
Oxygen is a DeFi prime brokerage protocol based on Solana that makes use of Serum’s on-chain infrastructure. It offers a variety of services, such as lending and borrowing, risk management tools, and leverage products.
In 2021, FTX-affiliated firm Alameda Research led funding rounds for Oxygen and Maps.me. The latter received investments totaling $50 million, while the former received $40 million.