News That Delights Solana Investors
Solana was punished under the weight of his association with Sam Bankman-Fried, and the price of his country is now selling well in almost two years.
SOL has fallen 35% this month and 75% since the start of the FTX saga. It started in November above $ 33 – SOL is currently trading at $ 9.14 after entering a low figure early Thursday morning, hitting a low of $ 8.30 last night.
It is the first time SOL has seen single digits since February 2021. SOL changed hands as low as $260 last November, representing a 96% decline. For statistics, bitcoin and ether have both fallen around 75% in the same period. Although Solana himself has no direct connection to the defunct crypto exchange FTX, the network has been boldly defended by his former CEO Bankman-Fried.
Alameda’s research business unit invested in Solana Labs’ first round of funding for SOL, per Crunchbase. Alameda’s investigation alleged the seizure of approximately $1.2 billion in SOL tokens leading to the bankruptcy of FTX, which led to its downfall.
This situation has affected the Solana Foundation, a non-profit organization dedicated to supporting the growth of the network. Last month, the group revealed that it had up to $1 million in cash locked up in FTX.
No SOL has been set on the platform to stop withdrawals, the foundation said, but it missed:
- 3.43 million FTT ($76.1 before FTX explosion, $2.9 million now)
- 135 million serum ($180 million then, $18.9 million now)
- 3.24 million worth of FTX Trading LTD (value unknown)
- FTT and Serum are useful markers for the transformation process supported by FTX and Solana, respectively. Both platforms were founded by Bankman-Fried.
There were also concerns that Serum was compromised during the critical cyberattacks on FTX before it collapsed. A critical encryption key was placed on the FTX, which led developers to push the DEX protocol to ensure it was valid under the control of the DAO.
In addition to the Solana controversy, two of Solana’s most popular NFT projects, DeGods and y00ts, confirmed this week that they will migrate to the Ethereum blockchain at Polygon early next year. All these obstacles have weighed heavily on Solana’s price.
As crypto markets are down across the board, Bankman-Fried-related indicators have been hit hard. But Solana Labs founder Anatoly Yakovenko told Blockworks in a recent interview that he believes the impact of the past few months will eventually pass.
“It’s awkward, it’s slippery, but in the end – four or five years later – no one will remember it.”