As a result of the FTX exchange’s collapse, Companies that were meant to be saved by the exchange are now going under alongside their former “Savior,” Sam Bankman-Fried.
While custodial exchanges and lending platforms are among the most vulnerable, the whole blockchain ecosystem may be in danger because of its dependence on FTX and Alameda.
SOL decline is far more severe than the 25% to 15% declines seen by other network tokens such as ETH, MATIC, AVAX, and BNB during the same time period.
When FTX and Alameda’s assets are sold off, there will inevitably be further selling pressure. With the aid of Binance’s CEO Changpeng Zhao, a leaked balance sheet caused a run on FTX, revealing that Alameda had $292 million in unlocked SOL, $863 million in locked SOL, and $41 million in SOL collateral.
After the announcement that soBTC coins were wrapped BTC tokens issued by FTX or Alameda, the value of all soBTC-backed assets dropped to about $1,315 on CoinGecko. Both companies have declared bankruptcy, making the BTC tokens worthless.
Concerns were raised that the private keys for the decentralized exchange Serum, situated in Solana had been hacked in the wake of the $477 million breach of FTX. As a result, a new fork of the protocol was swiftly released, with power now vested in “a multi-sig managed by a team of trustworthy engineers,” rather than the exchange’s DAO.
There will undoubtedly be more failures and bankruptcy notifications as the battle in crypto markets continues.
Also Read: CZ On Verge Of Second Crypto Rescue