It is obvious that the Solana foundation suffered a considerable loss when the FTX failed. A cryptocurrency exchange called FTX is closely related to the ups and downs of the Solana foundation. A sizable amount, $200 million, was lost.
According to a recently updated report, the Solana Foundation had approximately $1 million in cash, 3.43 million FTT tokens, and 134.54 million SRM tokens on FTX as of November 7, the day the exchange halted processing customer withdrawals.
When FTT traded at $22 and SRM at roughly $0.8, their respective pre-crash values, their total market worth was $183 million.
The Foundation also disclosed that it owned around 3.24 million shares of FTX Trading LTD, the principal business behind FTX.com. Given that FTX was not publicly listed, it is more difficult to calculate the loss from these shares.
Early in 2022, an investment round valued FTX at $32 billion.
The Foundation emphasised in its report that at the time of the collapse, it had no SOL tokens in custody on FTX.com. Furthermore, it stated that the $1 million in cash on the exchange had a “negligible” effect on business operations and represented less than 1% of overall cash reserves.
The Solana Foundation reported on the assets owned by the exchange, saying, “In light of the voluntary Chapter 11 bankruptcy procedures that FTX/Alameda initiated on November 11, we do not know how this and other FTX/assets Alameda’s would be handled in the wake of the Chapter 11 proceedings.”
SBF And Solana
There is a widespread belief that Sam Bankman-Fried controls Solana and the ecology surrounding it. The former exchange chief was an early investor in Solana through his trading company Alameda Research, although having no official affiliation with it.
The alleged relationship between Bankman-Fried and Solana caused the price of SOL to fall precipitously as the turmoil surrounding FTX developed.
SOL’s price dropped more than 60% with the collapse of FTX between November 6 and November 9, hitting a low of $12.37 on that day. ETH, the native currency of Ethereum, decreased by well over 30% in comparison within the same time frame.
SOL was trading for close to $180 at the start of this year. At the time of writing, the cost was $14.20.
On November 11, FTX filed for Chapter 11 bankruptcy, and Sam Bankman-Fried resigned as CEO the same day.
Chris Burniske, a partner at the venture capital company Placeholder that specialises in cryptocurrencies, was one of several to remark on SOL’s precipitous price decrease following FTX’s demise. He said that SOL is “purging everybody except the most devoted.”
The price collapse, he continued, reminds him of ETH’s decline to below $100 during the previous bear market. He noted that he is still positive for the longer term.
Summary Of The News
- Solana lost $200 after the collapse of FTX.
- The Foundation has 3.24 million shares of FTX trading LTD
- SBF has control over Solana