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Odaily Translator | Nian Yin Si Tang
Summary:
Summary:
- The Solana Foundation shared today the extent of its financial ties to FTX and Alameda Research.
- SOL has lost more than half of its market capitalization since FTX disclosed its liquidity crunch last Tuesday.Most major cryptocurrencies have fallen sharply over the past week due to the collapse of popular cryptocurrency exchange FTX, but Solana (SOL) has been hit harder than most cryptocurrencies. This was exacerbated by the Sam Bankman-Fried (SBF) relationship. Today, the Solana Foundation。
Solana Foundation in ablog postblog post
Zhong said that as of Nov. 6, before FTX stopped processing customer withdrawals, the foundation had about $1 million worth of cash or equivalent assets on FTX. Those assets are now trapped on the platform pending the outcome of FTXs bankruptcy proceedings. The foundation said the funding represented less than 1% of its total funding.
In addition, the Solana Foundation holds approximately 3.24 million common shares of FTX Trading LTD, as well as approximately 3.43 million FTT tokens and 134.54 million SRM tokens (from decentralized exchange Project Serum). SBF founded this Solana-based DEX in 2020.
Currently, the value of FTT tokens is approximately $4.36 million, while the total value of SRM tokens is approximately $29.3 million. However, the prices of both tokens have fallen sharply over the past week. As of last Monday (November 7), the foundation’s FTT tokens were worth about $75.5 million and the SRM was worth nearly $101 million.
The blog also claims that FTX and its affiliated Alameda Research crypto exchange (also co-founded by SBF) purchased more than 50.5 million SOL from the foundation, currently worth about $708 million. However, a large portion of SOL is locked in a monthly unlocking program that lasts until 2028.Solana Labs, a company representing founders and core contributors to the Solana network, also sold over 7.56 million SOL (worth approximately $106 million) to Alameda Research. All these tokens will be unlocked for trading in 2025. Solana Labs CEO Anatoly Yakovenko previously stated that Solana Labs was not affected by the FTX crash,。
Also do not hold funds on the exchange
The foundations disclosures underline the extent to which Solana and SBFs companies and projects are closely related. This also explains why the breakup of FTX last week had such an exaggerated impact on SOL price.
As of this writing, SOL is down 57% over the past week and currently trades at just under $14. By comparison, bitcoin and ethereum are down about 22% for the week, according to data from CoinGecko. SOL fell as low as $12.28 last night, its lowest recorded price since February 2021.
The foundation also noted that roughly $40 million worth of so-called “Sollet” assets — or wrapped versions of Solana — were affected by FTX’s exposure because they were already backed by the exchange. The status of the underlying assets is currently unknown, the foundation wrote.Meanwhile, the core developers of Project SerumA community-led fork of the project is being prepared, to ensure that theFTX was hacked last Friday
