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The FTX downfall severely affected Solana, a major cryptocurrency exchange. Recently, Solana reacted to FTX’s downfall. It released a letter that mainly detailed the risks of bankrupt crypto exchange FTX. Solana owned $180 million worth of digital assets before the exchange restricted the possibility of withdrawal on November 6, 2022.
As compared to the Proof-of-Work (PoW) blockchain Litecoin, the price of the Proof-of-Stake blockchain Solana went down. Solana lost half of its market value before the FTX bankruptcy. Representatives of Solana stated that the entity holds nearly $1 million (USD) on the crypto exchange. According to experts, this volume was insignificant and amounted to less than 1% of cash reserves.
Solana foundation stated, “This is less than 1% of Solana Foundation’s cash or cash equivalents and as such, the impact on Solana Foundation operations is negligible.”
According to reports, in spring FTX held nearly 3.43 million (USD) FTT tokens and 134.5 million (USD) Serum tokens. FTT was traded at $22, and Serum was traded at $0.8. In November 2022, Solana dropped to $15 from $259 last year. At the time of FTX’s downfall, Solana held nearly $3.2 million (USD) shares of FTX. During spring, FTX held nearly $60 billion in collateral and $2 billion in liabilities. During the FTX collapse, the collateral dropped to $25 billion and liabilities to $8 billion.
Arthur Hayes, the co-founder of BitMex, stated that it would be difficult to get a bail for the FTX, and maybe it will take time for users to recover their frozen funds on the FTX platform. He added that major cryptocurrencies like Bitcoin, Ethereum, and Solana might be affected due to their price surge.
Meanwhile, the two popular cryptocurrencies remain unaffected by FTX’s bankruptcy. Uniswap and XRP tokens are experiencing huge profits from last week. Uniswap has been trading at a high point since last Tuesday. Uniswap reached $6.45, and XRP rose by over 10%.
Currently, Coinbase is providing multi-wallet support for both Ethereum and Solana. Now, Ethereum and Solana can be stored in 15 sub-wallets linked to one recovery wallet. Each sub-wallet will provide a unique address for the transaction.
The Top Five Eco-Friendly Crypto Platforms
- Solana
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Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
