The ecosystem is teetering – Since last night, some so-called “wrapped” cryptocurrencies have been rocking, shaken by the FTX storm. So the bitcoin wrapped on the Solana blockchain (SOBTC) has lost nearly 70% of its value since yesterday. The enveloped ether, the SOETHnow also seems to be following him on his descent into hell.
Collapse of FTX and Alameda: Solana sees red
Whereas FTX filed for bankruptcy yesterday in the late afternoon and was hacking overnight – yes, that’s some information to digest – wrapped cryptocurrencies, i.e. hosted on the Blockchain Solana have gradually lost their value, thus leaving their 1 to 1 relationship.
So the SOBTC continues its descent into hell and is only traded at $5,427 at the time of writing these few lines, while the native bitcoin is worth 16,810.
Understand that many assets of the now bankrupt FTX and Alameda empire are operating in a wrapped form on the Solana blockchain. These assets, given the situation, are no longer exchangeable, inevitably leading the value of SOBTC to zero.
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For his part, the SOETH is also in turmoil. It does not have the same curve as the SOBTC certainly. However, we can see that it, too, has fallen off its 1:1 value on several occasions, even reaching almost 50% below the native value of ether first thing in the morning. Indeed, at 6 a.m. today, the SOETH was only worth $687. It then took over the value of the cryptocurrency it represents.
Make no mistake about it. No good trade is good to do here, let it be said. This volatility and this fragility of the price of cryptocurrencies are probably the first tremors of an ecosystem which lives one of the biggest earthquakes in its young history.
The Celsius and FTX disasters will have taught us at least one thing. It is better never to entrust the security of your cryptocurrencies to a third party, even a giant in the sector. To sleep with peace of mind, get a secure hardware wallet like Ledger offers for all budgets. Your security is priceless (commercial link).