Tech

Solana postpones token unlock amid double-dip fears, developers unaffected

11/10/2022
Bitcoin Ethereum News

Solana (SOL) postponed its staking unlock period for two days while Solana developers were still able to unlock and liquidate their SOL tokens, according to crypto influencer @DrProfitCrypto.

@DrProfitCrypto also mentioned that Solana shut down its website, but it remains accessible at the time of writing.

Solana Unlock

Solana’s staking lock-in period was supposed to end between Nov. 9 and Nov. 10. The end would release 18 million SOL tokens into the market.

Considering the recent events with the FTX (FTT) crash, and Solana’s connection to the FTX, technical analysts said SOL wouldn’t be able to handle the sudden increase in supply and expected SOL to double-dip.

Postponing the unlock also postponed the anticipated double-dip, giving time to Solana developers to unlock and liquidate their SOL tokens from the current price.

Solana’s downfall

FTX’s venture capital side had several Solana-based projects, which led investors to perceive SOL as a part of FTX. Therefore, Solana took a major hit from the FTX collapse as well.

Countless network outages in Solana’s history associated the blockchain with errors. Unsurprisingly, Solana started to experience network issues as soon as the FTX crisis started to unveil.

According to CryptoSlate data, SOL is the second biggest loser after FTT. SOL lost 21.55% of its value in the last 24 hours. In the last seven days, on the other hand, it lost 50% of its total value.

SOLUSD
SOLUSD

At the beginning of the week, the SOL price reached as high as $37.72. In five days, the price retreated by 58% from its weekly high. At the time of writing, SOL is being traded for around $15.7.

Source: https://cryptoslate.com/solana-postpones-token-unlock-amid-double-dip-fears-developers-unaffected/