Solana has been battered underneath the load of its affiliation with Sam Bankman-Fried, with the value of its native token now buying and selling firmly at near-two yr lows.

SOL has plunged 35% this month and 75% because the FTX saga first broke. It began November past $33 — SOL now trades at $9.14 after slipping to single digits early Thursday, reaching a low of $8.30 final night time.

It was the primary time SOL had seen single digits since February 2021. SOL modified palms for as a lot as $260 final November, representing a 96% collapse. For scale, bitcoin and ether have each dropped round 75% over the identical interval. 

Whereas Solana itself has no direct connection to bankrupt crypto change FTX, the community was loudly championed by its disgraced former boss Bankman-Fried. His buying and selling unit Alameda Analysis invested in Solana Labs’ preliminary coin providing for SOL, per Crunchbase.

Alameda Analysis reportedly held about $1.2 billion in SOL tokens main as much as a crippling financial institution run on FTX, which led to its chapter.

The scenario has impacted The Solana Basis, a non-profit devoted to supporting the community’s development. The group final month disclosed it had about $1 million in money caught on FTX.

No SOL was saved on the platform because it stopped withdrawals, the inspiration has stated, however it had misplaced:

  • 3.43 million FTT ($76.1 million earlier than FTX blew up, $2.9 million now)
  • 135 million serum ($180 million then, $18.9 million now)
  • 3.24 million shares of FTX Buying and selling LTD widespread inventory (worth unknown)

FTT and serum are utility tokens for FTX and Solana-powered decentralized change protocol Serum, respectively. Each platforms have been based by Bankman-Fried.

There have been additionally issues that Serum had been compromised in the course of the odd cyberattacks on FTX simply earlier than its chapter. Important personal keys have been custodied at FTX on the time, main builders to fork the DEX protocol to make sure its legitimacy underneath management of a DAO. 

Including to Solana’s strife, two of its hottest Solana NFT tasks, DeGods and y00ts, this week confirmed they’d be migrating to rival blockchains Ethereum and Polygon early subsequent yr.

All these stresses have certainly weighed closely on the value of Solana. As crypto markets sag throughout the board, tokens related to Bankman-Fried have been hit notably onerous.

However Solana Labs co-founder Anatoly Yakovenko instructed Blockworks in a latest interview he believes results of the previous few months will ultimately cross.

“This can be a blip, it sucks, however ultimately — 4 or 5 years later — barely anybody goes to recollect it.”

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