- Solana network was championed by Samuel Bankman-Fried, the co-founder of FTX exchange and Alameda trading.
- Solana is battling scrutiny from critics who argue that SOL price appreciation was driven by Bankman-Fried’s marketing efforts.
- SOL price is down 94.8% over the past year, the altcoin is struggling to recover from the bloodbath in the aftermath of FTX's collapse.
Solana lost nearly 95% of its value over the past year, in the aftermath of the FTX collapse and bankruptcy. The Ethereum-alternative is struggling to hold steady after Samuel Bankman-Fried’s FTX exchange suffered insolvency. Experts believe the Solana price rally relied on the marketing efforts of Samuel Bankman-Fried (SBF).
Also read: Binance and KuCoin users connected to trading bot 3Commas hit by 100,000 API leak
Solana struggles to survive crypto winter in aftermath of FTX exchange collapse
Solana, Ethereum’s competitor, is struggling to survive the crypto bear market since FTX exchange’s collapse. Since November 2022, SOL price has plummeted 30%. The crypto community is debating whether Solana can survive 2023 and recent events have raised questions about SOL’s future prospects.
The Ethereum-killer network witnessed a steep decline in its price over the past month. Fear, uncertainty and doubt (FUD) in the crypto community has accelerated and the recent departure of NFT projects and active developers from the Solana network triggered a bearish sentiment among SOL holders.
Competition from other Ethereum scaling solutions and the collapse of Solana’s vocal supporter Samuel Bankman-Fried’s firms FTX exchange and Alameda Research has seen FUD spike in the SOL holder community.
Skeptics in the crypto community argue that Bankman-Fried’s market interventions and advocacy triggered a rally in Solana price and drove the token’s appreciation. While SBF is under house arrest and facing charges, and FTX exchange is going through financial restructuring post its bankruptcy filing, SOL price dropped 96.4% from its all-time high of $259.96.
Solana co-founder scrambles to save the altcoin from collapse
Anatoly Yakovenko, co-founder of Solana Labs Inc. is scrambling to sever the connection of the token with SBF. In an interview earlier this month, Yakovenko said that he doesn’t usually comment on price and his focus is on “the technology and having people build something awesome that’s decentralized.”
The collapse of FTX exchange had an impact on the Solana ecosystem and its founders. The price drop in the Ethereum-alternative was seen as an expression of waning confidence in the FTX ecosystem and the spreading contagion.
Yakovenko said that roughly 4% of the teams building projects on the Solana network were acutely affected by FTX’s collapse. Some projects had funds custodied on the crypto exchange. About 80% of teams on Solana’s blockchain had no exposure at all to FTX, and the team is working on connecting severely impacted founders with investors who could potentially provide emergency capital.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.