Amidst the turmoil surrounding crypto exchange FTX, there is currently one big loser, Solana (SOL). When Binance CEO Changpeng Zhao announced the sale of all FTT tokens, the FTT token was at the center of discussion for many market observers, seeing the price of SOL drop by a whopping -12% over the past 24 hours.
Even the FTT token is currently recording a loss of less than -3%. So what’s closing the sale of SOL? Just a few days back after Google announced the launch of Solana Verifier, SOL experienced a hefty price tag.
On Monday morning, the SOL declined from its one-month high of $38.78 to reach $30.74 on Binance on Saturday. At press time, the SOL token was trading at $31.34. Thus today’s selloff has wiped out all gains after Google News and is now trading up -8% on a weekly basis.
Victims of Solana FTX Drama?
The Ethereum community, in particular Eric Konner, the main dev of Ethereum and co-founder of Ethhub, was quick to condemn the alleged “Ethereum killer”. Conner said via Twitter that it is “ridiculous” that the alleged “FTX/Almada/Solana scam” surfaced two years later.
It’s so funny to see you all realize the FTX/Almada/Solana scam, when most of us called it out and reprimanded for doing so.
— eric.eth (@econoar) 7 November 2022
But words of warning for Solana investors are coming not only from the ETH community. Users are wondering whether a potentially impending FTX implosion will have a massive impact on SOL.
focus on #solana , ftx will have to sell to cover the expenses. if they are having problems
— berg (@ADAMBERGMANshow) 7 November 2022
it was recently revealed That Solana (SOL) tokens are among the more important assets on FTX’s balance sheet. Bankman-Fried was an early investor in Solana and has mobilized support for Solana several times in the past.
The exchange owns approximately $3.37 billion in cryptocurrencies, with a large amount of SOL tokens: $292 million in “UnlockedSOL”, $863 million in “LockSOL” and $41 million in “SOL collateral”.
The SOL token could be a means of obtaining liquidity for FTX totaling $1.2 billion and protecting the price of the FTT token, which is also a key pillar of FTX’s balance sheet. However, little is currently known about putative SOL sales by FTX. However, the only correlation between FTX and Solana could be a big pressure on the price of SOL at the moment.
Thus, there may also be pure speculation behind the current SOL dilemma. As mentioned in the beginning, the background is that FTX is closely related to SOL. If the bank goes on for a long time, there is at least a very high chance that the Solana coin will take a big hit as well.
But, if Bankman-Fried is dumping SOL, it certainly isn’t the only altcoin. as on-chain analysts Comment, other tokens are also affected by selling pressure by FTX. These coins include CHZ, LOOM, SHIB, LINK and DYDX.