The FTX contagion has continued to spread, and many crypto platforms are receiving the effects of the exchange’s collapse. DeFi prime brokerage, Oxygen, has stated that it was taken aback by the events relating to FTX bankruptcy proceedings.
Announcing this in a Twitter post, the protocol made it known that FTX was the custodian for most of the tokens (about 95%) in its ecosystem.
According to a statement by the protocol,
“Whilst FTX Group did not hold any equity [in the MAPS.ME or Oxygen businesses], it did hold a significant proportion of MAPS/Oxy tokens. It also acted as custodian for over 95% of the overall supply of our ecosystem tokens — both locked and unlocked.”
Recall that in January 2021, Maps.me, an offline version map created for travelers, generated $50 million during its fundraising, which Alameda Research led. Also, the sister company to FTX chaired a $40 million fundraising for crypto lender, Oxygen, the next month.
With the fundraising, Oxygen launched its decentralized ecosystem known as Serum which was built on the Solana blockchain. But recent revelations have shown that FTX oversaw most of the tokens in the Serum ecosystem.
As a result, the FTX bankruptcy has greatly affected them. Oxygen stated it is considering options to protect MAPS and Oxy ecosystems, and as such, the DeFi lender has retained legal advisors to help with the process.
Oxygen also emphasized that it can only rely on publicly available information. However, the company promises to always communicate to its users once there is any tangible update.
Many crypto activists and users have called the protocol out after this announcement. They were dismayed by the fact that Oxygen had not communicated with them in over seven months, only to come back out due to the FTX collapse. Users claim the Oxygen is trying to use the FTX story to cover up their mess.
