The collapse of FTX has rippled throughout the business, hobbling liquidity at companies with publicity to what was as soon as one of many world’s largest crypto exchanges.
Solana, or SOL, is the token behind the upstart Solana blockchain, which helps good contracts, together with non-fungible tokens, and has emerged as a rival to the ethereum blockchain.
Bankman-Fried, who is predicted to enter a plea subsequent week to felony costs he defrauded traders and looted billions of {dollars} in buyer funds at FTX, steadily praised Solana. FTX and Alameda, Bankman-Fried’s buying and selling agency, held Solana tokens on their steadiness sheets.
While Solana has no direct relation to FTX, and had restricted publicity to the failed alternate, its affiliation with Bankman-Fried has been a drag.
“The general problem with crypto is that its lack of intrinsic value means that values are based on confidence and perceived utility. If those suffer in relation to a specific token, then it suffers,” mentioned Steve Sosnick, chief strategist at Interactive Brokers.
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A consultant for Solana was not instantly out there for remark.
SOL has dropped 51.14% for the reason that furor round FTX started unfolding on Nov. 2. In the identical interval, ether has fallen about 21.3% and bitcoin 17.6%.
The value of Serum, or SRM, the token for the decentralized alternate of the identical identify created by Bankman-Fried on the Solana blockchain, is down 80.5% since Nov. 2, buying and selling at simply over 14 cents, in accordance with coinmarketcap.com.
The whole market capitalization of the cryptocurrency market now stands at $798.4 billion, in accordance with the web site, down from a peak of over $3 trillion in Nov. 2021.