Users of the Alameda-backed Ren Protocol may risk losing their money if they do not take immediate action. Altcoin developers have warned users that they may run the risk of losing their tokens.
Altcoin developers announce: You are at risk
Alameda-backed altcoin Ren has warned users that they could lose their tokens as a result of the upgrade. Like other bridges, Ren allows users to deposit a cryptocurrency from its native blockchain (e.g. BTC in Bitcoin) in exchange for a tokenized representation of that asset (e.g. renBTC) circulating on Ethereum. This gives Bitcoin holders access to applications, fees, and transaction speeds found on other blockchains. The upgrade to Ren 2.0 aims to make Ren an open-source and community-controlled project while also severing all ties with the now bankrupt Alameda Research. The developers said in their statements on Twitter:
- As previously announced, the Ren 1.0 network is being shut down due to events surrounding Alameda. As compatibility between Ren 1.0 and 2.0 cannot be guaranteed, holders of Ren altcoins should bridge local chains as soon as possible otherwise they risk losing them!
- To protect the integrity of the project and the security of Ren users, the Ren 1.0 network will be retired. We aim to launch Ren 2.0, a fully community-controlled network, as soon as possible.
- With mints disabled, the process will start soon, while burns will remain active for 30 days.
- This affects liquidity pools with Ren assets and the possibilities to arbitrate the price of Ren assets in LPs, even if the underlying asset can always be redeemed.
- We aim to ensure that any RenJS integrations will migrate to the Ren 2.0 network when launched. We also intend to use the same gateways and token contracts for the Ren 2.0 network.
- And finally, we aim to come back stronger with a fully decentralized and community-owned cross-chain network.
2) In short, to protect the integrity of the project and the safety of users of Ren, the Ren 1.0 network will be sunset, and we aim to launch a fully community-controlled network, Ren 2.0, as soon as possible.
— Ren (@renprotocol) November 20, 2022
RenVM, the company behind the project, has previously stated that it will release a new version of the protocol, Ren 2.0, “in parallel” with the shutdown of the existing one. This meant that existing bridged assets could still be usable after Ren 1.0 was shut down. However, this new announcement makes it clear that existing assets may not be available in the new version of the platform. Therefore, users’ tokens may get stuck on the platform.
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