Stargate propose token reissue amid Alameda wallet hack, STG up 21%
Stargate proposes to reissue token amid Alameda wallet hack, STG up 21%
The reissue of the tokens ensures that the 100 million Alameda assets in the STG are not stolen and released to the market.
The Stargate Finance internet protocol initiated a 1 billion STG reissuance proposal due to concerns that the Alameda wallet containing 10% of the tokens had been compromised.
During Stargate’s public sale on March 17, 2022, Alameda Research acquired 10% (100 million) of STG’s total supply with a commitment to lock the tokens until March 2025.
Following the recent FTX crash, Alameda’s wallet was reportedly compromised. December 28, 2022 Arkham Intelligence tagged an attacker who transferred over $1.7 million from Alameda’s wallet through multiple crypto mixers.
The malicious Alameda hack raised concerns that all tokens, including locked STGs, could be stolen and released into the market.
Hence Stargate DAO proposed reissue all STG tokens to prevent an attacker from taking the tokens and dumping them into the Stargate liquidity pools.
“Without token reissues, an attacker with access to Alameda’s private keys could claim Stargate tokens from the contract as they are transferred and misappropriated.”
Under the offer, Stargate will perform a snapshot on March 15, 2022 and reissue new STG tokens to existing holders at a 1:1 ratio.
24 hours prior to the snapshot, all exchanges and pools that support STG will suspend deposit and withdrawal requests. However, trading will be resumed after the completion of the reissue of tokens.
The reissuance of tokens ensures that Alameda’s 100 million assets in STG are not stolen and released to the market.
In addition, the Stargate Foundation said it will create a new multi-signature wallet to protect Alameda tokens pending the outcome of the trading firm’s ongoing bankruptcy process.
According to the data, Stargate native token (STG) is up over 21% in the last 24 hours and 96% in the last 30 days. Cryptooshala data.
Credit : cryptoslate.com