The Solana Foundation and Solana Labs disclosed asset exposure and trading history related to bankrupt cryptocurrency exchange FTX and its sister trading firm Alameda Research.
On November 11, FTX.com and Alameda Research filed for Chapter 11 bankruptcy protection. These companies have strong ties to the Solana ecosystem, which has caused panic among investors.
The Solana Foundation, the Swiss nonprofit behind the Solana blockchain, announced that it had approximately $1 million in cash or cash equivalents in FTX before the exchange suspended payments. According to the foundation, this represents a tiny fraction of its holdings.
According to Coingecko, the 15th largest cryptocurrency by market cap has lost a whopping 41.2% of its value over the past week.
Solana’s native token, SOL, has fallen from slightly over $20 on Nov. 9 to just over $14 at the time of writing, making it the worst performer among the top 100 cryptocurrencies by market cap.
The downtrend in crypto values has brought SOL is down nearly 94.5% from its all-time high.
The foundation also holds 3.24 million common shares of FTX Trading Ltd, as well as 3.43 million FTT tokens and approximately 135 million SRM tokens. All of these assets reside on the FTX exchange.
The Solana Foundation and Solana Labs sold a total of 58.08 million SOL tokens to Alameda Research and FTX Trading, representing almost 11% of Solana’s total supply.
NFTs on Solana
Along with the unfortunate relation with FTX, the decrease in user activity in relation to Solana based NFTs also affected the value of the token.
NFTs were a large factor in the uptrend and popularity of the Solana token.
Although, Solana took a major hit due to FTX, the broader crypto market has also felt the effects.