Solana Among Top Laggards Amid FTX Drama

Former BitMEX CEO Arthur Hayes recently mocked the performance of the Solana (SOL) token, referring to the lyrics of Drake’s hit single “Hotline Bling” in a recent tweet.

Solana (SOL) has significantly underperformed the rest of the market over the past 24 hours, plunging by 33%.

As reported by U.Today, Binance agreed to acquire its archrival, thus potentially consolidating its position as the biggest cryptocurrency exchange. The deal made it possible to prevent the total collapse of FTX, which is why it managed to temporarily calm the market.

Ads

However, the recovery was just a flash in the pan, and some of the leading cryptocurrencies started to quickly lose ground. Bitcoin collapsed to a new yearly low of $17,114 on the Bitstamp exchange, weighing down other major cryptocurrencies.

No exposure to FTX

SOL has been expectedly hit hard by the fallout due to its ties to FTX and Alameda Research, the two firms controlled by crypto billionaire Sam Bankman-Fried. In the meantime, the FTX token collapsed by 71.7% within a day, sliding to 70th place by market capitalization.

In a recent tweet, Solana Labs founder Anatoly Yakovenko has clarified that his company did not have any assets on the embattled exchange.

More regulation on horizon

In a note to employees, Binance CEO Changpeng Zhao reportedly said that the FTX crisis had undermined confidence in the cryptocurrency industry.

The Binance headbbelieves that the recent mayhem will lead to more regulatory scrutiny. He also expressed his concerns about Binance potentially becoming an even bigger target.