Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Fox Token: Crypto Trading Pioneer ShapeShift Set to Fully Decentralize

CryptocurrencyJul 19, 2021 12:30AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
Fox Token: Crypto Trading Pioneer ShapeShift Set to Fully Decentralize

  • ShapeShift has taken tentative steps to shut down its operations and hand over the keys to a DAO.
  • The winding-up process is scheduled to take around 3-12 months and will include airdrops worth around $98 million.
  • Users that have used the ShapeShift platform at any point will be eligible to take part in the airdrop.
  • 32% of FOX tokens in circulation will be shared amongst ShapeShift staff, while 34% will be distributed to the community.

ShapeShift has announced that it will be closing its doors of operations in the coming months. The “radical” decision is part of a move to go all-in on decentralization, breaking the norm from what is generally applicable in the current climate.

The ship will be steered by a decentralized autonomous organization (DAO) that is made up of FOX token holders. The transition is expected to take a few months and will include the distribution of FOX tokens to the community, staff, and Foundation.

The Curtain Falls for ShapeShift

Popular cryptocurrency trading platform, ShapeShift has revealed the decision to cease operations as a company. The Denver-based firm will pass the baton to a DAO that is controlled by holders of the FOX token.

According to Erik Voorhees, CEO of the company, the winding-up process may take up to a year, and in the end the company will have “no employees, no bank accounts and no CEO.”

The move lines up with the desire to be fully decentralized and the decision of the protocol to close “its corporate entity sets it apart,” which can rightfully be called “true decentralization.” Firms in the industry usually leave behind a corporate entity to carve out a profit for the founders.

This is huge news for the cryptocurrency ecosystem as it could trigger mass migration towards large-scale decentralization. All eyes are on ShapeShift to see how well the transition process is carried out.

The Process

To ensure a smooth, seamless transition for the company, ShapeShift will be distributing $98 million worth of crypto to past users of the platform and other affiliated communities.

340 million of ShapeShift’s FOX token will be airdropped to all the previous users of the platform, which amounts to over 900,000 addresses. Users of other DeFi platforms can also participate in the airdrop as 120,000 addresses have been earmarked.

Users that have carried out 100+ trades on the platform are eligible to receive 8,500 FOX while KeepKey customers that have connected their KeepKey to ShapeShift are eligible to receive 250 FOX.

Users of Gitcoin, Aave, Compound, Uniswap, among others, are eligible to receive 200 FOX if they meet certain criteria.

32% of the FOX supply will be disbursed to staff, while 24% will be given to the ShapeShift DAO and 1.3% will be utilized by the company as it begins the process.

On The Flipside

  • The move to embrace true decentralization is setting a precedent, but the community is yet to see how well the arrangement works out.
  • It all hangs in the balance and, much like the flip of a coin, it could either become a massive success, or a disastrous failure.

What Does It All Mean?

For ShapeShift, this marks the end of its corporate existence and is the beginning of a community-owned crypto platform. The codebase of the protocol will be open-sourced, making it truly decentralized.

The success of this intrepid attempt by ShapeShift would inevitably lead to more protocols following suit. The equitable distribution of assets has been cited by cryptocurrency experts as a key factor for why the transition may be fluid.

Since the announcement, FOX has risen by well over 164% and is currently trading at $0.7881, while trading volume is up by a mind-boggling 295,073% as of the time of writing.


Join to get the flipside of crypto

Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.

[contact-form-7] You can always unsubscribe with just 1 click.

Continue reading on DailyCoin

Fox Token: Crypto Trading Pioneer ShapeShift Set to Fully Decentralize

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email