Solana and FTX: Dangerous Liaisons

We learn a little more – One week after the start of the FTX drama, the Solana Foundation details its relationship with FTX. If it was common knowledge that the two entities were close, the public now has a little more information.

Fall of FTX: the Solana Foundation impacted

What is the actual extent of the damage? In a post of November 14, the Solana Foundation indicated that it hadone million dollars approximately in cash or cash equivalent, on, on November 6, when the crypto exchange froze withdrawals.

The Solana Foundation also owns 3.24 million common shares of FTX Trading LTD (now worth nothing), 3.43 million FTT (tumble towards 0), and approximately 134.54 million Serum (SRM) tokens, which are blocked on FTX, since this suspension of withdrawals.

At the current price and according to data from CoinGecko, FTT and SRM tokens locked on FTX are worth approximately $4.4 million and $29.3 million respectively, down from $83 million and $107 million on the eve of the freeze on withdrawals.

Did the major crypto protocols manage to jump ship FTX in time?

The Solana Foundation claims that it had no SOL tokens deposited on the crypto exchange at the time of the suspension of withdrawals. It details these figures a little more.

The announcement states that FTX and Alameda had bought SOL to the Solana Foundation from August 2020. The total amount of purchases would amount to 58 086 686 SOL. In the post, the foundation indicates that it is unaware of the intended treatment for these assets, after FTX and its affiliates have filed for bankruptcy.

The FTX carnage has already rocked cryptocurrencies hosted on Solanaas well as the Serum decentralized exchange, built on the SOL blockchain. Be that as it may, we haven’t finished seeing the corpses come to the surface.

The markets can do what they want, come hell or high water, are you an extreme hodler? So add a few satoshis to your wallet! To do this, Sign up on Bitget (commercial link).

Leave a Comment