Solana Foundation loses more than 180 million due to the collapse of FTX

The blockchain’s non-profit organization held a large stake in FTT and SRM tokens on the bankrupt exchange

25.11.2022 - 08:15

450

2 min

What’s new? According to the Solana Foundation’s report, the non-profit organization held about $1 million in fiat and equivalents on the bankrupt FTX exchange as of November 6. The non-profit organization stressed that the collapse of the exchange does not have a significant impact on the project, as this amount is less than 1% of its assets. Although the native token SOL was not stored on FTX, about 3,43 million FTX’s (FTT) coins and 134,54 million Serum (SRM) coins owned by the fund are currently locked up on the exchange. According to CoinGecko, at the time FTT was trading at ~$22 and SRM was worth ~$0,8. Thus, the fund’s assets of $75,46 million and $107,6 million respectively remain on FTX.

Solana’s website

What else did the report say? The non-profit organization noted that USDC and USDT stablecoins on Solana are issued directly by Circle and Tether issuers. The team added that stablecoins have not lost their peg to the dollar at this time.

Meanwhile, on November 17, Binance suspended accepting deposits in USDC and USDT issued on Solana, and the OKX exchange delisted both assets. Tether later said it was transferring 1 billion USDT from the Solana network to Ethereum

What is going on with Solana? One of the largest investors in the project is trading firm Alameda Research, part of the bankrupt FTX Group.

Analysts at Santiment said that “there are not a lot of big Solana believers.” On November 22, experts recorded a massive shorting of SOL on the cryptocurrency exchange Binance, when its rate fell by 63% in just under four days.

As of November 25, 08:00 UTC, SOL is trading at $14,2, down by 1,12% in 24 hours, according to Binance. FTT and SRM prices amount to $1,38 (+5,3%) and $0,27999 (-0,78%).

Author: