The recent major hit to the crypto industry in the form of FTX collapse continues to send its ripple effects. Many crypto assets and firms were directly affected by the incident. Solana (SOL) is included in one such beleaguered network and so the projects based on it. Solana based defi project Mercurial reported to seek its revamp in the wake of crypto exchange fall.
Mercurial is said to relaunch with ‘Meteora’ and will issue an all new token for the holders of MER token. With this, the decentralized finance trading project inferred to make efforts to ensure its dissociate with the Bahamian crypto exchange and its founder Sam Bankman-Fried.
The protocol is planning to be overhauled could bring significant consequences for MER token holders. This is worth mentioning that the token declined up to 46% following the fall of Bahamian crypto exchange.
Token holders are disowning existing tokens in aspiration of the upcoming token. The new token, Meteora, is said to have a maximum supply of 100 million tokens which is about 10% of previous token. The existing holders will get the equal amount of their holdings in the form of new tokens.
Although the token holders seem to remain in a break-even situation, project insiders might not meet the same fate.
Co-founder of Solana based Jupiter Finance, Ben Chow said that the seed investors, private investors and the team members of Mercurial are likely to see a reduction of 50% from their unvested tokens. These major backers are said to control up to 45% of overall MER tokens. The shakeup will result in increasing the influence of existing tokens holders.
The Solana-based cryptosystem Meteora is the most recent to reinvent itself in the blazing ruins of the FTX and Alameda Research. As leading venture capitalists and market-makers in the Solana DeFi ecosystem, Sam Bankman-hedge Fried’s fund and crypto exchange were kingmakers. Nearly all Solana-based trade protocols have been destroyed by their death, including Mercurial, which released its token in a sale managed by FTX.
When a hacker ransacked the exchange’s ruins in November, hours after FTX Group declared bankruptcy, they also made off with a sizable haul of MER tokens, which were then worth $800,000. According to Chow, that incident offered Mercurial’s team a justification to change the entire protocol.
Source: https://www.thecoinrepublic.com/2022/12/28/solana-based-defi-platform-mercurial-seeking-rebranding-to-meteora/