Source: Key members of L1 project Syscoin Foundation plan to resign and form a new entity

Early L1 project Syscoin is expected to undergo leadership changes in the coming days due to mismanagement and lack of financial transparency, according to multiple people familiar with the matter. Key members of the Syscoin Foundation plan to resign and form a new entity, Syscoin Red. The Syscoin Foundation is a nonprofit organization established to further develop the project. People familiar with the matter said that internal disputes between the foundation and another for-profit entity, SYS Labs, over the allocation of funds have erupted, causing disunity within the foundation. Willy Ko, a member of the foundation's board of directors and treasurer, said the new entity aims to restore transparency and trust in the Syscoin community and clearly define who controls the project funds. Ko said: "The foundation's treasury wallet is not a multi-signature wallet, and SYS Labs CEO Jagdeep Sidhu has sole control. I am concerned about the lack of transparency in the use of foundation funds." At its peak in January 2022, the total market value of the project's native token SYS was approximately US$775.3 million. CoinGecko data shows that this figure has dropped to just under US$80 million. (Decrypt)