In the cryptocurrency world, the FTX crash affected all altcoin projects. However, Solana in particular was more affected by this collapse. The collapse caused Solana to fall to the $12 level. However, there are now very different interpretations of the SOL. Let’s look at the details.
Solana emerges strong
In 2022, the cryptocurrency world experienced a seismic event when FTX, a leading exchange, suffered a catastrophic crash, sending shockwaves throughout the industry. Among those most affected by this turmoil was the Solana ecosystem, a Layer-1 smart contract blockchain protocol. Anatoly Yakovenko, co-founder and CEO of Solana, attracted attention with his recent statements. Accordingly, Yakovenko expressed concerns about the numerous projects being built on Solana.
Following the bankruptcy of FTX, Solana’s native token, SOL, dropped its value from $36 in early November 2022 to $12 in the days following the stock market crash. Solana’s leadership and investors took immediate action, reaching out to hundreds of teams working on products, services, and decentralized applications in the ecosystem to assess the extent of the damage.
Extent of damage
Approximately 20% of Solana-based projects received investment from FTX or Alameda Research. Additionally, only 5% of ecosystem startups had their funds tied to the now-bankrupt stock market. This loss of funding has severely impacted the ability of many startups to continue their operations. It also caused their runways to evaporate. One notable case was Armani Ferrante, who secured nearly $20 million to develop Coral, a cryptocurrency infrastructure company based in Solana. Ferrante estimates that FTX lost about $14.5 million due to its collapse.
Despite such setbacks, founders like Ferrante have persisted, using failure as motivation to rebuild their companies from the ground up. Solana SOL’s price drop is sad. However, Yakovenko emphasized that the real tragedy is the damage to ecosystem projects. He expressed relief that despite the difficult conditions, most of the crew managed to survive. As the one-year anniversary of FTX’s collapse approaches, some positive developments have emerged.
Positive developments
FTX’s former CEO, Sam Bankman-Fried, faces a high-profile criminal case. He was also found guilty of all seven charges on November 3. Accordingly, the sentence is planned to be given in March 2024. Investors realized that the influence of FTX was hindering the growth of the next generation smart contract Layer 1. But there is a silver lining for the Solana ecosystem.
Ethereum venture capital investor Chris Burniske makes a statement on the subject. Accordingly, Solana points out that SOL plays a very important role in highlighting the value proposition. He also points out that it encourages people to explore the platform as a viable alternative. This impact enabled the ecosystem to recover. He also demonstrated the resilience of the SOL in the face of adversity, contributing significantly to its revival. All this cryptokoin.com When we look at it as a whole, it shows that the Solana project has emerged stronger from the storms.
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