DeFi

Ren Protocol 1.0 Is Likely To Imminently Shut Down

Ren Protocol 1.0 network may shut down at any time, and any remaining assets on the network are at risk of being lost.

The Ren team is unsure of the date the network will cease to operate. Maximilian Roszko, the ecosystem advocate at Ren Protocol, said in the project’s Discord channel:

“We don’t know exactly when, depends on when infrastructure down which we aren’t in control of, could be in the next few days, or a week or two, we don’t know but trying to figure out.”

Ren Protocol also announced on Twitter:

Tokens wrapped from other blockchains are supported by the network. RenBTC, a tokenized variation of bitcoin on the Ethereum blockchain, is one of the most significant of them. These tokens won’t necessarily have any value in the event that Ren fails, and they won’t be able to be sent back to their original chains in order to release the collateral.

This is so because the now-defunct trading company Alameda Research, which purchased the bundled Bitcoin-focused project in February 2021, has since folded. The team doesn’t have all the facts, but it looks like Alameda was managing the network’s supporting infrastructure independently from its node operators.

When asked if the network’s node operators could force a manual restart, Roszko said that due to Alameda’s involvement, this was not possible.

The Ren team won’t have access to any money when the network is shut down, according to Roszko. On the other hand, it might possibly be resumed in the future, allowing for a recovery process.

Ren Protocol has therefore cautioned users to unlock this collateral by sending these tokens back to their individual chains before the network abruptly goes down. Nevertheless, more than $15 million in renBTC is still present on Ethereum and is in danger of becoming stranded despite these cautions.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

Coincu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.