Stacks and the Stacks Ecosystem Post-FTX
Published by Stacks Foundation Team on November 21, 2022
Given the latest market developments and our commitment to transparency, we’re providing an update on the status of the Stacks Foundation and indexing related responses from other organizations operating within the Stacks Ecosystem. We’re disappointed and frustrated by the latest events related to FTX and Alameda, but have not been directly impacted by the fallout or resulting liquidity issues. We hope that through collaboration, we can build a more trustworthy Web3 together.

Below, we’ve collected statements from various Stacks entities in an effort to assure the community that Stacks builders will continue to have the support they count on from organizations leading various aspects of the ecosystem. No organization listed below had any direct exposure to FTX and they do not anticipate being impacted by any further unraveling of interconnected businesses, aka ‘the contagion.’

If you operate a Stacks company or represent a project and would like to have your statement added to this post, please contact us.

Stacks (STX) Token: A low-volume futures PERP was listed on FTX, but otherwise there was no regular token listing or agreement for listing between Stacks entities and FTX. Alameda was not a Stacks market maker. PERPs can now be found on Helix (formerly Injective).

Stacks Foundation: Our treasury was fully seeded after the SEC-qualified sale and is managed by Qualified Custodians. These custodians have released statements reinforcing that they have not been impacted by FTX and that their very structure prevents our funds from being at risk. To further clarify, we are not awaiting capital calls from organizations that might be caught in the domino effect.

Organizations in alphabetical order:

Daemon Technologies
Gamma
Notice to our users, from Gamma; November 21, 2022: We’d like to formally share that Gamma.io has had no affiliation, exposure, or funds stored with FTX. Users’ assets are not custodied by Gamma in any centralized manner, and the vast majority of our corporate assets are stored in self-custodied solutions or in FDIC-insured, US-based bank accounts. Gamma.io Inc as a Delwarare C-corp and is subject to, and complies with, all US regulations for corporations. Read more here.
Hiro Systems
Hiro had no exposure to FTX. Read more here.
Mechanism
Secret Key Labs/Xverse
Stacks Ventures
Trust Machines
Muneeb and the official Trust Machines account reassured followers that they have no exposure to FTX.

Remaining cautious, methodical

From the beginning, the Stacks project has prioritized compliance as a means of protecting its builders and community. This commitment is evidenced by the SEC-qualified token offering and transparent public offering report - as well as how we strive to operate carefully and methodically on a daily basis. We will continue to choose opportunities and partners, including exchanges and custody, with careful consideration. It’s not always obvious where issues may arise, but we hope our continued focus on creating a trusted environment for builders and preventing future incidents that could impact users and token holders.

Moving forward

Looking ahead, we recognize that this unraveling will continue to impact many people in significant, negative ways. As we navigate how this will affect the industry, let's encourage each other to acknowledge and discuss the personal mental and emotional toll that inevitably occurs around these types of crises. Check in on your community, friends, and anyone impacted.

This moment has the potential to be a turning point for the better. We can ensure that by working together to create a more responsible industry. For our part, we will focus on education that aims to help developers, token holders, and builders make the best possible decisions on how they engage with the industry and operate their projects.
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