The cascading impact of FTX is not only limited to its user base. The damage has been spread to its closely tied crypto enterprises, such as the Solana network.
SBF, which maintained an altruistic image in the cryptocurrency sector, is now connected to dragging all other cryptocurrency enterprises working alongside it into a black hole.
All the cryptocurrency enterprises that had maintained a close working relationship and dependency on FTX are sinking into this pit.
Since the reports of Alameda and FTX financial conundrums come to light, investors have been pulling out their positions from all its associated platforms.
As the lawsuit against FTX is underway, more reports are coming out to stockpile the incriminating evidence against SBF. Meanwhile, SOL, the native token to Solana, has now dropped 50% on account of its association and large trading stakes with Alameda and the FTX exchange.
SBF reportedly introduced this token as an alternative token against Ethereum. Considering the background, the demise of SOL is far greater in comparison to some other cryptocurrency tokens, such as AVAX and BNB.
These altcoins have also experienced retracements of 25% and 15%, respectively, but they are considered normal based on the current economic backdrop.
Solana Empire is Crumbling
Solana network is undergoing a massive demolition as statistics indicate that some of the biggest Solana projects depended heavily on FTX. Wu Blockchain has tweeted an SOL whale address that is under the process of liquidation.
The latest statement issued by Solana network suggests that less than 1% of Solana Foundation assets in cash or cash equivalent were reserved with FTX exchange.
Meanwhile, there are other allegations, such as a tweet by Mango Max revealing that the Serum update key was connected to FTX rather than SRM DAO. The Sollet-wrapped assets were dissolved when reports about their issuance from FTX were made public.