Solana (SOL) has yet to catch a break. The so-called “Ethereum killer” has plummeted in value over the past few days amid the growing speculation that the seemingly insolvent crypto exchange FTX and its trading firm Alameda Research are dumping the tokens to raise liquidity.
SOL is currently trading at $16.92, down about 30% on the day and over 43% in the last week, according to TradingView. The dump has totally erased the gains SOL made a few days ago when Solana announced a partnership with Google Cloud. SOL is now down 93% from its all-time high of $259.96 and has fallen out of the top 10 crypto coins, according to data from CoinGecko.
The dumping of the SOL token comes after the news that FTX, the second largest crypto exchange in the world, is insolvent and being acquired by its rival, Binance. Some suspect that Alameda, which was founded by FTX CEO Sam Bankman-Fried and still has close ties to him, is unloading SOL to raise liquidity.
SOL is Alameda’s second-largest holding as the firm was one of the most active investors in the blockchain project. It also holds other Solana ecosystem tokens like Serum (SRM), MAPS (MAPS), and Oxygen (OXY). In the last 24 hours, SRM is down 28% ($0.40), MAPS 10% ($0.10), and OXY 1% ($0.3), according to TradingView.
FTX’s native token FTT is also down another 27% in the last 24 hours. Just yesterday it was trading at over $22 but has since dumped to $4, a 95% drawdown from its all-time high.
Another token that Alameda holds is BitDAO (BIT). When it unexpectedly crashed 20% on Monday, the DAO asked Alameda to prove it still holds 100 million BIT tokens that it got in a swap agreement in 2021. The DAO said it would consider selling 3.4 million FTT tokens if Alameda indeed had unloaded BIT because both parties agreed to hold the tokens for three years.
While Alameda provided proof that it still has the tokens, BIT is again down 7% on the day, trading at $0.32 and going even lower than Monday.
Solana is one of the largest and most valuable blockchains in the industry. If FTX and Alameda are indeed insolvent, this might mean SOL will continue dumping, as both firms will liquidate the tokens to honor withdrawals and square up with their investors.
Sourced from dailycoin.com.
Written by
by Rue Abernai on 2022-11-09 13:00:27.
