Solana Foundation Exposed to FTX Collapse via Direct Investments

The Solana Foundation has 3.24M shares of FTX Trading LTD common stock, 3.43 million FTT tokens, and 134.54M SRM tokens.

As more cryptocurrency companies report their digital assets’ balance sheet, Solana Foundation has revealed that it had approximately $1 million on the FTX exchange when the company ceased operations. The Solana Foundation shed light on allegations that SOL was heavily leveraged on the FTX cryptocurrency exchange. Reportedly, the foundation had no SOL custodied on FTX.

Nonetheless, the SOL coin is trading at around $14.57, down over 51 percent in the past seven days. The spike in SOL’s volatility is similar to what is observed on FTT, only that the latter has filed for a chapter 11 bankruptcy filings.

The Solana Foundation has noted that it has assets locked in the FTX accounts and continues to be unavailable due to the standing status.

Reportedly, the Solana foundation has 3.24m shares of FTX Trading LTD common stock, 3.43 million FTT tokens, and 134.54m SRM tokens.

On the other hand, FTX and Alameda had invested in Solana through a stake in SOL tokens. Reportedly, the collapsed FTX ecosystem holds 58,086,686 SOL tokens, purchased in August 2020, six months after Mainnet Beta launched. Precisely, Alameda Research Ltd had SOL tokens that will be unlocked until 2028.

Solana Ecosystem Takes a Hit after FTX Collapse

While the bankruptcy proceedings are yet to hit the ground, the Solana foundation has admitted that it does not know how the balances will be settled.

“In light of the voluntary Chapter 11 bankruptcy proceedings that FTX/Alameda announced on November 11, we do not know how these and other FTX/Alameda’s assets will be settled in the aftermath of the Chapter 11 proceedings,” the blog post reads.

Moreover, Sam Bankman-Fried seems to be protected by the political elite whom he sponsored during the recent 2022 midterm elections in the United States. Reportedly, Sam donated approximately $40 million to both sides of the aisle, Democrats and Republicans.

The Solana network has reported that the large decentralized financial ecosystem (DeFi) on its blockchain had limited or no exposure to FTX exchange. On the other hand, the SOL network has admitted that small DeFi projects may be exposed to the FTX saga, but they are figuring out the way forward.

For instance, the Solana developers are forking Serum (SRM) after it may have been compromised in a hack on the FTX exchange. The fork is meant to render the stolen coins worthless and return the coins to the respective owners.

Meanwhile, the SOL network has a market cap of approximately $5,181,519,319, with a daily traded volume of around $1,182,893,454. According to market data, the SOL coin has lost approximately 94 percent of its value in the past year.

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Source: https://www.coinspeaker.com/solana-ftx-collapse-direct-investments/