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$1 Billion Worth of Solana To Be Dumped Amid FTX Collapse | CoinGabbar

Key Takeaways

  • Token indices are undergoing a blood bath with even Bitcoin and Ethereum facing a steep fall in their prices. 

  • FTX and Sam Bankman were some of the biggest Solana whales in the industry. However, they had to dump their Solana into the market to cover up the liquidity crunch in FTX.

  • Solana Foundation is running a project that provides value to its users, and its complete crash is hardly possible because of FTX’s dump.


12 Nov 2022 By : Anirudh
Southeast Asia’s Lar

Led by a sudden crash of FTX and Alameda Research, uncertainty in the crypto space has also reached fundamentally stronger projects. Token indices are undergoing a blood bath with even Bitcoin and Ethereum facing a steep fall in their prices. 

Cryptocurrencies have already lost billions of market capitalization in a matter of days and as per the market sentiment, the worst is yet to come.

Why Solana is Being Dumped?

FTX and Sam Bankman were some of the biggest Solana whales in the industry. However, they had to dump their Solana into the market to cover up the liquidity crunch in FTX. This has affected the prices of Solana drastically had a comparatively good last week, touching the mark of $38.

This was not the end of the fall as the Solana validators that are foundational to the stability of the blockchains have already unlocked their $800 million worth of Solana from the network. These unlocked Solana tokens are most probably going to hit the markets as the lock-in period ‘Epoch 370’ ends anytime soon.

According to another report from Solana Compass’ blockchain data, another 55 million Solana tokens are pending to be unlocked and might hit the markets as well. 

Is Solana Going to Crash?

The present market scenarios have forced the entire Solana community into a dilemma of whether Solana going to survive this FTX crash. However, SBF did not own Solana and neither did FTX or Alameda Research. They were one of the earlier investors in the blockchain project and Solana is not an FTX product. 

Solana as a blockchain has shown its metal in multiple comparisons. The projects on Solana are working as fine as they used to and the use cases of its blockchain network are not going to get affected by its market price.

Alameda used to have massive Solana holdings but even that wasn’t any more than 10% of its total market capitalization. Solana Foundation is running a project that provides value to its users, generating an intrinsic value to its token. Solana is most probably not going to die because of the FTX crash however, a steep falling rally might continue to follow up in its charts. 

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