The FTX crisis has severely affected Solana (SOL), as well as the exchange’s own cryptocurrency FTT. Behind this negative effect were allegations that Solana is a coin supported by the CEO of FTX. The Solana Foundation and Solana Labs, which remained silent after the FTX crisis, made a statement. It disclosed assets and transaction histories associated with FTX and its sister trading company, Alameda Research. Here are the details…
Solana Foundation disclosed its assets
As we reported on Cryptokoin.com, on November 11, FTX.com and Alameda Research filed for Chapter 11 bankruptcy. The firms had strong ties to the Solana ecosystem, which caused panic among investors. The Solana Foundation, a Switzerland-based nonprofit that supports the Solana Blockchain, has revealed that it had around $1 million in cash or cash equivalents in FTX before the exchange paused withdrawals. According to the foundation, this represents a negligible amount of their assets.
The foundation also owns 3.24 million common shares in FTX Trading Ltd. On the other hand, it has 3.43 million FTT tokens and around 135 million SRM tokens. Serum is a Solana-based decentralized exchange and SRM is its native token. Now, according to the statement, all these assets are stuck on the FTX exchange. The Solana Foundation and Solana Labs have sold a total of 58.08 million SOL tokens to Alameda Research and FTX Trading, representing approximately 11 percent of Solana’s total supply.
The total value of FTTs held by the foundation before FTX went bankrupt was 75 million. Currently, this amount is worth 4.3 million dollars. SRM value decreased from $101 million to $30 million in total. Meanwhile, it has been revealed that a certain part of the 50.5 million SOLs held by FTX and Alameda is locked and will be unlocked in 2028. Solana Labs also sold 7.56 million SOLs to Alameda. These will be unlocked in 2025.
There are fork studies for serum
Meanwhile, Serum, an orderbook-based DEX that is the primary source of liquidity for many of Solana’s protocols, is believed to be in jeopardy. Mango Max and other Solana developers teamed up to fork the protocol after the $650 million FTX hack on November 12. Many leading Solana dApps have dropped support for the legacy Serum protocol. These include Magic Eden, the leading NFT marketplace in Solana, and Phantom, a crypto wallet.
Meanwhile, DeFi lender Mango Markets has confirmed that it will support the community fork of Serum when it launches its V4 iteration. Serum’s native SRM token is up 43.7 percent in the last 24 hours. It changes hands at $0.303719. On November 13, the Crypto.com exchange paused SRM deposits and withdrawals.
SOL, on the other hand, is currently changing hands at $14.84, up 2.8 percent. The cryptocurrency has lost close to 50 percent in the last seven days.
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