Solana, once hailed as a cryptocurrency rival Ethereum, has lost 70% of its value since the dramatic fall of Sam Bankman-Fried and 94% since the start of the year.
The cryptocurrency was heavily endorsed by Sam Bankman-Fried and featured on his company’s balance sheets.
Bankman-Fried said over the summer that Solana was the most undervalued cryptocurrency in the market.
Last summer, Sam Bankman-Fried (SBF) listed the Solana cryptocurrency as the most undervalued cryptocurrency. Since the beginning of the year, Solana has lost 94% of its value. November had a big impact when Sam Bankman-Fried’s FTX crypto exchange crashed. That month, Solana lost 70% of its value.
The cryptocurrency was once hailed as a rival to Ethereum, the second most popular cryptocurrency. Now its value is 10 US dollars (9.38 euros). By November 2021, Solana had peaked at $259.99.
The latest drop in value comes after the release of several cryptocurrency projects from the Solana ecosystem. On Monday, CoinDesk announced that two NFT collections, DeGods and Y00ts, plan to leave the Solana blockchain and move to Ethereum and Polygon.
read also
For years, Sam Bankman-Fried and his companies have backed Solana and invested in the failing cryptocurrency.
In 2021, Solana Labs raised $314.2 million in investments. Solana was the second largest investment from commercial firm Alameda Research, founded by Bankman-Fried. Bankman-Fried even created a decentralized exchange called Serum using the Solana blockchain.
Last November and with the collapse of the FTX empire, the Solana Foundation team published a blog post explaining the ties between Solana and the FTX company. FTX and Alameda Research together purchased over 50.5 million Solana tokens, which are now valued at $500 million and would remain “locked” until 2028.
The Solana Foundation, in turn, had approximately $1 million in cash or investments on the FTX crypto exchange. It was like that on November 6 – the day when customers were no longer able to withdraw funds because FTX ran out of cash.
What will happen to these assets remains unclear during FTX’s bankruptcy proceedings. However, Forbes reported, based on data from Solana Compass, that Alameda bankruptcy trustees have now frozen more than half a billion US dollars worth of cryptocurrencies.
This article was translated from English by Amin Al Magrebi. You can find the original here.