Solana Foundation, the non-profit organization that fosters the development of the Solana blockchain, announced Monday that it lost $1 million in cash to the debacle of crypto exchange FTX. It also recorded several losses to the exchange.
Solana Foundation Loses Funds to FTX
In an official statement, the non-profit organization noted that it also lost 3.43 million FTT tokens and 134.54 million SRM tokens. It further recorded a loss of 3.24 million shares of FTX stocks. All these funds are currently being locked in FTX, as the exchange halted withdrawals earlier this month and filed for Chapter 11 bankruptcy protection.
Despite its losses, the foundation stated that the $1 million in cash held at FTX represents less than 1% of its funds and assets. It further told users that no amount of Solana is held in the custody of FTX.
SOL Tanks 60% After FTX Collapse
The native token for the Solana network, SOL, saw a severe downtrend amid news of FTX’s insolvency.
Before the news of FTX’s liquidity crunches, SOL traded around $35. However, upon the announcement of FTX’s collapse, the token saw a sudden downtrend, losing more than 60% of its value. At the time of writing, SOL traded for $14.
SBF’s Affiliation to Solana
A possible reason why Solana dropped heavily after the collapse of FTX is the relationship the token community has with Sam Bankman-Fried (SBF), the founder of FTX.
The FTX boss is known for supporting the growth of the Solana ecosystem. In August, Solana recorded a massive hack that wiped users’ funds from about 8,000 wallets. Notably, SOL barely reacted to the news of the hack, thereby keeping its price range at the time.
SBF capitalized on the fact that the Solana network maintained its stability throughout the time. He stated that SOL is the “most underrated” token.
In an earlier interview, Sam stated that Solana could become the largest decentralized finance (DeFi) platform. SBF’s company, Alameda Research, has also invested in a previous funding round for Solana Labs.
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